Estate Agent Demanding Fees

eddddy

The contract clause you've highlighted is very clear - no fee is due to the EA based on that clause. (So is there another clause in the contract which the EA is relying on?)

The EA's email is just "wishful thinking" - it doesn't match what that clause in the contract says.

And to be clear, the EA can't unilaterally change the terms of the contract by sending you an email with different terms.

So ask the EA which specific term/clause in the contract they are relying on, when they say a fee is due.  (Don't take any notice of waffley email replies from the EA  - insist on them pointing out the specific term/clause in the contract.)

MylesMorley

eddddy said:

The contract clause you've highlighted is very clear - no fee is due to the EA based on that clause. (So is there another clause in the contract which the EA is relying on?)

The EA's email is just "wishful thinking" - it doesn't match what that clause in the contract says.

And to be clear, the EA can't unilaterally change the terms of the contract by sending you an email with different terms.

So ask the EA which specific term/clause in the contract they are relying on, when they say a fee is due.  (Don't take any notice of waffley email replies from the EA  - insist on them pointing out the specific term/clause in the contract.)

I'll email tomorrow asking for specifics. It feels like they're trying to make up the contract.

I'll let you all know how we get on, thanks. 

davidmcn

eddddy said:

The contract clause you've highlighted is very clear - no fee is due to the EA based on that clause. (So is there another clause in the contract which the EA is relying on?)

The EA's email is just "wishful thinking" - it doesn't match what that clause in the contract says.

And to be clear, the EA can't unilaterally change the terms of the contract by sending you an email with different terms.

So ask the EA which specific term/clause in the contract they are relying on, when they say a fee is due.  (Don't take any notice of waffley email replies from the EA  - insist on them pointing out the specific term/clause in the contract.)

I concur with this - if the EA wanted to get a fee on exchange of contracts at any time with a buyer whom the vendor started talking to during their period of sole selling rights, they could have said so in the contract. They didn't.

Jumblebumble

I think you may have misunderstood
My understanding is
It is irrelevant when the offer was accepted if the agent did not find the buyer
What is important is exchange of contracts


Thrugelmir said:

MylesMorley said:

Thrugelmir said:

MylesMorley said:

TN1984 said: 

MylesMorley said:

steampowered said:

Looking at that clause, the fee will be payable under item (1) if your partner exchanged contracts with the builder while the agent had sole selling rights.

Your partner will have exchanged contracts with the builder at some point during the sale process. The estate agent contract has a 28 day termination period.

Did your partner exchange contracts with the builder less than 28 days of giving the agent notice that she would be leaving with them? If so, she is liable for the fee. If it was more than 28 days, it sounds like she is not liable for the fee.

Personally I would just write back to the EA saying that the fee was not payable on the basis that contracts were not exchanged until after the agency agreement had terminated, in line with the EA's terms and conditions.

It is quite common for estate agents to "have a go" at claiming fees for houses they were involved with even if the fee is not properly due under the terms of the contract. I wouldn't offer part payment as if you offer part they'll want the whole thing. 

Thanks very much for your detailed reply. The contracts were exchanged on the 10th December, after the contract with the EA ended on the 3rd December, due to this exact reason. 

So the 28 day notice period ended on 3rd December? I'm not a legal expert and I am sure others can give you a more reliable answer, but just from reading the clause, if the 28 day period ended on 3rd December and you exchanged on 10th December, it does not sound like a fee is due IMO.

Edit; seen your further reply. Seems they identified a fee would become due if you part exchanged and confirmed this to you well before it happened? 

Yeah I get that, but it's not in the contract. He's basing that fee off the contract, and it doesn't indicate that.

Are we getting the full story ?  Did you just hope to get this under the radar by delaying completion after the position you found yourselves in? I assume the builder said it was your problem to resolve. 
The EA is no doubt world wise to the stunts that people attempt. Simply waited like yourselves. 

Absolutely, and as per the contract that seems fine.  Nothing was finalised until the contract had ended though .

No one is disputing that.  More in question is the timeline. When did you accept the part exchange offer? 

Thrugelmir said:

MylesMorley said:

Thrugelmir said:

MylesMorley said:

TN1984 said: 

MylesMorley said:

steampowered said:

Looking at that clause, the fee will be payable under item (1) if your partner exchanged contracts with the builder while the agent had sole selling rights.

Your partner will have exchanged contracts with the builder at some point during the sale process. The estate agent contract has a 28 day termination period.

Did your partner exchange contracts with the builder less than 28 days of giving the agent notice that she would be leaving with them? If so, she is liable for the fee. If it was more than 28 days, it sounds like she is not liable for the fee.

Personally I would just write back to the EA saying that the fee was not payable on the basis that contracts were not exchanged until after the agency agreement had terminated, in line with the EA's terms and conditions.

It is quite common for estate agents to "have a go" at claiming fees for houses they were involved with even if the fee is not properly due under the terms of the contract. I wouldn't offer part payment as if you offer part they'll want the whole thing. 

Thanks very much for your detailed reply. The contracts were exchanged on the 10th December, after the contract with the EA ended on the 3rd December, due to this exact reason. 

So the 28 day notice period ended on 3rd December? I'm not a legal expert and I am sure others can give you a more reliable answer, but just from reading the clause, if the 28 day period ended on 3rd December and you exchanged on 10th December, it does not sound like a fee is due IMO.

Edit; seen your further reply. Seems they identified a fee would become due if you part exchanged and confirmed this to you well before it happened? 

Yeah I get that, but it's not in the contract. He's basing that fee off the contract, and it doesn't indicate that.

Are we getting the full story ?  Did you just hope to get this under the radar by delaying completion after the position you found yourselves in? I assume the builder said it was your problem to resolve. 
The EA is no doubt world wise to the stunts that people attempt. Simply waited like yourselves. 

Absolutely, and as per the contract that seems fine.  Nothing was finalised until the contract had ended though .

No one is disputing that.  More in question is the timeline. When did you accept the part exchange offer? 

doraspenlow

I know that this is different, but there have been cases of agents trying to claim fees from landlords when tenants (introduced by them) went on to buy the property later. They try to claim estate agent introductory fees. And, even though there is such a clause in the initial letting agreement with the landlord, subsequent court cases have deemed that the agent isn't due a fee because they didn't do any additional work. 

As I say, it's a different circumstance from yours, but shows that it is possible to push back on this kind of thing.