Can someone help me understand this estate agent terms

kasqueak

Please can someone help me understand this clause in estate agent contract?
Says agency agreement will run for minimum period of 16 weeks but this clause implies even if after this time I cancel and go with someone else they can charge me a fee? Even if it isn’t someone introduced by them. Surely this can’t be right. Highlighted the bit below. 

First time seller so bit unsure. 

Thanks for your help!

Hasbeen

Yes that is correct and can be enforced.

kasqueak

So what is the point of the 16 week minimum term if they can charge me a fee no matter what? That’s what I don’t understand. 

Surely if they introduce me to no prospective buyers in the 16 week period and I cancel and go with someone else who then sells it they can’t claim any money from me. Doesn’t seem right at all?

SameOldRoundabout

I think it’s only if the buyer has originally seen the property via them? Say someone viewed it through them then went away to think, you market with someone else and then that viewer comes back 4 months later to buy. You’re liable for both agents fees. 

eddddy

That part of the contract looks like a very typical EA contract.

Assuming you're going for sole agency (as opposed to multiple agency), read clause 1 followed by the clause you've highlighted.

i.e. The part you've highlighted only applies to people mentioned in 1.i, 1.ii, and 1.iii.

E.g. Let's say:

• That EA introduces Mr A Smith during their sole agency period (16 weeks) - by arranging a viewing
• A couple of weeks later you terminate the contract with that EA
• Within 6 months (or 2 years) after that, Mr A Smith decides to make an offer and buy your house.
• ... you will owe that EA a fee.

In simple terms, you owe that EA a fee because they introduced Mr A Smith, who eventually went on to buy your property.

But that EA will not get a fee for any buyer introduced after their sole agency period ends.

(FWIW, 16 weeks is a very long minimum contract period. Try to negotiate it down to 6 to 8 weeks.) 


Edit to add...
All the above seems reasonable. But the trap you need to avoid is this:

If you move to a second EA, in the above scenario, you have to make sure that you would not be liable to pay the second EA a fee, if Mr A Smith buys your property.

jimbog

(FWIW, 16 weeks is a very long minimum contract period. Try to negotiate it down to 6 to 8 weeks.) 

The angle to go on is to say that if the EA is that confident that they can sell your house there would be no need for 16 weeks stipulation 

kasqueak

Thank you for your replies. Do you think it’s a typo where it says in the area I’ve highlighted - “your fees as highlighted BELOW” actually should be as highlighted ABOVE i.e. the part about if they introduce you to a buyer your are liable. 

That I can kind of understand. 

But I felt it was worded like you were liable to pay them a fee no matter what, whereas surely if we’ve had no one view it in 16 weeks for example so we cancelled with them and went with someone else who sells it why would we have to pay this first agent anything. 

Smodlet

Answers as above, OP.  EAs are the scum of the earth:  If they can find a way to screw money out of you, they will.

You know the adage, "How do you tell if an EA is lying?  Their lips are moving", right?

Good luck with your purchase.  I strongly recommend you read a whole lot of threads on here about exactly the same thing.

notrouble

Do not agree to 16 weeks. Madness! What if you are unhappy with them and want to switch? That's a long time to wait. 6 weeks ideal, 8 weeks max. If you're happy with them you can always stay longer.