Estate agents costs payable if cancellation within 14 day cooling off period

Jimmy1963

We have signed a property selling agreement with an estate agent at a distance and are therefore entitled to the 14-day cooling off period.  The selling agreement also stated that we would be liable for payment of an 'administration charge of £500 + VAT as a contribution towards costs that will have been incurred". We are now considering cancelling the agreement (within the 14 days) and are unsure of where we sit relative to the £500 charge as we believe that the actual costs incurred to date are less than £500 (1 week on Rightmove and 1 viewing). Does the estate agent have to provide verification of any charges incurred (up to £500) or are we simply lumbered with the £500??

[Deleted User]

Even the biggest agents round here don’t charge unless there’s a sale 🤯 What does it say in the contract Terms and Conditions? Have they mentioned in but vaguely?

Slithery

The number of viewings is irrelevant to their costs. Making the floor plan, taking photos, and producing the text for the advert will be the same no matter how many viewings.

AskAsk

i remember seeing something like this in our sale agreement.  i think it was to recover costs for the photographer coming round to take photos and the advertising costs they have already incurred, like printing the sales brochure, and costs of putting it on the advertising portals.

if you stay with them and take the house off the market after the tie in period, then you won't have to pay for all this as the property just hasn't sold and it wasn't your fault.  i think the £500 + VAT is not unreasonable, and you have signed the agreement.

sheramber

Did you sign an agreement that the  EA could  Start marketing the property before the end on the 14 day period- as they have obviously done so if you have already had a viwer.
if you did, then that negates the cooling off period.

eddddy

sheramber said:

Did you sign an agreement that the  EA could  Start marketing the property before the end on the 14 day period- as they have obviously done so if you have already had a viwer.
if you did, then that negates the cooling off period.

That's not quite right.

If you instruct the the EA to start marketing immediately, you can still cancel within the 14 day cooling off period, but you have to cover any costs that the EA incurred up until the point at which you cancelled.

But you only get a 14 day cooling off period if you sign the contract away from the EA's offices (e.g. at home).

Jimmy1963 said:

Does the estate agent have to provide verification of any charges incurred (up to £500) or are we simply lumbered with the £500??

Yes - but they'll include costs for things like the time taken writing the property details, the time taken on the phone to prospective buyers, the cost/time for taking photos and preparing floor plans etc.

Jimmy1963 said:

We are now considering cancelling the agreement (within the 14 days) ...

Why?

For example, if it's because you've found a buyer privately, or you've changed your mind about selling, you don't necessarily have to cancel the EA's contract.