Two estate agents... who gets the sale?

Emiemigro

Hope this is understandable ....

we put our house up for sale in Jan with an estate agent we know (friend of my partners) had no luck and they were pretty rubbish so 2 weeks ago we put the house up with a different agent and took the house off the market (verbally) with the original agent. 

We had an offer through the original agent which we didn’t accept as it was too low. Then covid happened. Now the buyers who offered have called the new estate agent and upped their offer. Which agent gets the sale if we accept? The original agent we went with has said if anyone who viewed through them offers we HAVE to go through them, it’s the law. Now we’re worried if we accept this offer they sent through the new agent we will face backlash from the original agent and solicitors so on so on. I didn’t think this was ‘a thing’ I assumed (possibly naively) that once the 12 weeks was up and you switched agents that was it? 

kasqueak

I think it’s a standard clause that if an agent “introduces” you to a buyer then you have to pay them commission - even if you’re no longer with that agent when that buyer decides to proceed with the sale. You may also have to pay the new agent. 

You need to check your contracts with both as this will answer your question. 

sharpe106

You will probably need to pay both by the sounds of it, as the first agent introduced them and the 2nd one have done the sale. Although see what your contract says.

Surrey_EA

I think in this scenario I would be saying to agent 2 that these buyers were introduced via agent 1 and negotiations should revert to agent 1, and as such should the sale go ahead you will only be paying a fee to agent 1.

theartfullodger

The agent that gets it is the one with the best legal support - support that also drafted all paperwork for this transaction.

Surrey_EA

theartfullodger said:

The agent that gets it is the one with the best legal support - support that also drafted all paperwork for this transaction.

You get the justice you can afford!!

bpj

In practical terms I wonder whether your best option would be to put the two agents in touch and suggest they agree a split between them - let both agents know you will not move forward on this offer until the position is clear.

They might say you need to pay both sets of commission in full - assuming this is the contractual position you would need to take this into account when deciding on the offer. But I'd have thought the agents would be prepared to negotiate in order to secure the sale.

greatcrested

What were the terms with agent 1? What does their contract say regarding fees due when a buyer they originally introduced goeson to buy? Either during or after the contract period. Though your verbal 'took it off the market' is very wishy-washy: a) you did not take it off the market ( you wanted to end your contract with them which is different) and b) verbal may not meet requirements to end the contract (though you need to read the contract!).

So seems likely you owe agent 1.

What were the termswith agent 2? Sole agent contract? Unless you included a list of people previously introduced by agent 1 and specifically excluded them from agent 2's potential fee, you likely owe agent 2 as well.

As suggested, try to get them to discuss/agree between them how to share the fee, but legally I suspect both could carge you.

AW618

Tell the buyer that their actions have resulted in you owing sale fees to two agents if they buy, so their offer will have to cover that if they want your house.

hazyjo

Agent 1 really should've passed details of interested parties and offers to Agent 2. Did they?

sharpe106

AW618 said:

Tell the buyer that their actions have resulted in you owing sale fees to two agents if they buy, so their offer will have to cover that if they want your house.

I doubt any buyer would be willing to do that unless they really wanted the house, and it is the action of the seller, changing agents not the buyer.