Estate Agency Fees - Help Please!

mactcatfootball

HI Everyone,

I'm hoping someone is able to provide me with advice on whether my estate agent is within their rights to charge me a fee for finding a buyer.

I instructed my agent on 29th June 2021. Their contract states the type of instruction as "sole agency rights", however under fees it states "sole selling rights commission fee - 0.8% +VAT"

Everywhere else within the contract all references are to "sole agency rights".

The contract period was for 12 weeks, which we have just come out of. 

The agent found us a buyer and an offer was accepted. No solicitors, or surveyors, have been instructed as we have been unable to find a suitable property to move to.

We have now decided we want to stay in our home and to pull the sale. However, I am concerned the agent may try to either charge us all, or part, of their fee. 

The contract states we will be liable to pay the fee if:

1. unconditional contracts for the sale of the property are exchanged in the period during which we have sole agency rights...

2. if unconditional contracts for the sale of the property are exchanged after the expiry of the period during which we have sole agency rights but to a purchaser who was introduced to you during that period...

I don't believe either of these terms apply to our circumstances. There is also no "ready, willing and able buyer" clause within the contract.

We did consistently explain to our agent that we would only be prepared to move if we were able to find a suitable property, which we have not been able to. The agent carried out home searches on our behalf, but has not produced one possibility for us to view. 

Before I contact our agent to discuss removing the house from the market, I'd really appreciate some advice from people within the forum.

Thank you :-)

caprikid1

Nail on head:-

"I don't believe either of these terms apply to our circumstances. There is also no "ready, willing and able buyer" clause within the contract."

Given the information provided, you will have a frustrated Estate Agent but no bill.

SpiderLegs

Term 1 - no
term 2 - no, unless you exchange co tracts with the same buyer in the future 

GDB2222

I agree with the advice you have been given above, but can I add one point.

The time to clarify the meaning of the contract is before you sign it. Ask all these questions then, and do it in writing. Only sign up once you are happy with the answers, and get the contract amended as necessary.

GDB2222

You’ll be amazed about how accommodating estate agents are before you sign up. Much less so, when you come to cancel the contract.

eddddy

As others say - neither of of the clauses you quote would make you liable for paying fees.

It's a good sign that there is no "ready, willing and able buyer" clause - but there may be other wording elsewhere in the contract which might make you liable for a fee. You need to read through all the terms thoroughly.


You could also try phoning the EA and say you're thinking of withdrawing - and ask about the fee situation. If they say no fee is payable, you can safely withdraw. If they say a fee would be payable, you can then study the contract and prepare for a fight if you disagree.

If there is a relevant clause elsewhere in the contract, I guess there's also the 'unkind' option of doing nothing for so long that the buyers give up and withdraw. (But it would be kinder to let your buyers know asap so that they can start looking again.)

Also, the EA will try to pressure you to continue with the sale - so that they get their fee.

Skintoap

I’m assuming a Memorandum of Sale has not been issued for the sale of your property. If it has, check the contract carefully to ensure there is no clause that would make you liable for the fees once a Memorandum of Sale has been issued. Usually along the lines of having introduced an  interested buyer.

hazyjo

I'd probably word it to make out I was delaying until [insert excuse] and would use them again if remarketing. They'd prob be more likely not to charge you now.