Agent trying to charge me full fee within 14 day cooling off period

ace500

I recently put my house up for sale with an agent that was a distance away, so everything was done either online or over the phone. This is a Modern Method Of Auction sale which was due to run for 28 days.

I have now decided a week later not to sell the house due to a change in circumstances, but the company are saying I now owe them their full fee.

I did sign a waver to allow them to start marketing the property, so I understand I may be liable to some costs, but the contract states if I cancel I am liable for the full fee if they have found the 'ultimate purchaser'. The property had been on the market for 2 days, and viewings were due to take place this weekend, but they are telling me I owe them the full fee as they only allow serious buyers to view properties and the property is already 'sold'. I now have no intention of selling the property elsewhere, but where do I stand with this now please? They are also threatening to put a restriction of title on the property.

eddddy

If a 'service' has been fully performed during the 14 day cooling-off period, you don't have the right to cancel it.

Are you saying that you agreed to proceed, and then 2 days later you said you wanted to cancel?


In that case, they seem to be claiming that they carried out the entire 'service' within those 2 days.

You'd need to read their contract to see what 'service' you were paying for, and therefore whether they've performed it.


For example,

• If the 'service' was to advertise you property details on their website and set up an auction - perhaps they've done that.

• If the 'service' was to find a buyer who goes on to purchase your property - they probably haven't done that (yet).

(Just to be clear - why do you want to cancel? Is it because are you trying to be sneaky and sell privately to a buyer who was introduced via the auctioneer / agent?)

hannahcolobus

I'm sure someone far knowledgeable than me will be along shortly but I'm fairly sure they can only charge you for 'reasonable' costs they've incurred during the cooling off period? So presumably an hourly rate for whoever showed people round etc. I don't think you'll get away with not paying anything but I don't think they'll have much success trying to make you pay the full fee. 

csgohan4

OP when your setting your agent as modern auction method, put yourselves in the buyers shoes as well. Some of us on here will not touch your house with barge pole, because the buyer will be paying your costs as well. 

Either that the offer will reflect the increased costs, which will be reduced. The EA are the winners here not you

74jax

So is it right that no viewings have taken place yet? 

user1977

ace500 said:

 they are telling me I owe them the full fee as they only allow serious buyers to view properties and the property is already 'sold'.

Well, is it? I thought the whole point of MMOA was that the buyer pays the EA's (extortionate) fees, so why aren't they just taking the fees they've got from the buyer? Or does their contract say the vendor also pays a fee (and is that only in the event you pull out without a sale having been achieved - in which case, it ain't "sold", surely?)

ace500

OK, just to clear up a few things here.

eddddy - The full service would be to advertise the property, set up the modern method of auction, and then find a buyer. So while I do acknowledge some of the service has been performed, I don't believe it has been fully performed. The auction was due to run for 28 days and viewings were due to take place but have now been cancelled. As far as I know, I don't think any viewings have actually taken place, so it seems unlikely any bids or offers would have been made. The reason I want to cancel is because I have decided I no longer want to sell the property. I was going to sell in order to clear funds, but I no longer need to do this, so my intention is now to keep the property.

csgohan4 - I'm not quite sure what you mean in respect of this. If it was the case therefore that less offers or reduced offers were made, surely that would only weaken their case for charging the full fee?

74jax - As far as I know, I don't think any viewings have taken place. The property only went on rightmove on Thursday afternoon, and I cancelled Thursday evening, so I wouldn't have thought there would be time. I may be wrong there though.

ace500

user1977 said:

ace500 said:

 they are telling me I owe them the full fee as they only allow serious buyers to view properties and the property is already 'sold'.

Well, is it? I thought the whole point of MMOA was that the buyer pays the EA's (extortionate) fees, so why aren't they just taking the fees they've got from the buyer? Or does their contract say the vendor also pays a fee (and is that only in the event you pull out without a sale having been achieved - in which case, it ain't "sold", surely?)

No it isn't. The auction would run for 28 days. The only way they could claim it is 'sold' would be if they had had a bid before I cancelled, but they surely can't say that would be the last bid to come in, so they wouldn't be able to name an 'ultimate purchaser' as the property is now not going to be sold.

csgohan4

ace500 said:

OK, just to clear up a few things here.

eddddy - The full service would be to advertise the property, set up the modern method of auction, and then find a buyer. So while I do acknowledge some of the service has been performed, I don't believe it has been fully performed. The auction was due to run for 28 days and viewings were due to take place but have now been cancelled. As far as I know, I don't think any viewings have actually taken place, so it seems unlikely any bids or offers would have been made. The reason I want to cancel is because I have decided I no longer want to sell the property. I was going to sell in order to clear funds, but I no longer need to do this, so my intention is now to keep the property.

csgohan4 - I'm not quite sure what you mean in respect of this. If it was the case therefore that less offers or reduced offers were made, surely that would only weaken their case for charging the full fee?

74jax - As far as I know, I don't think any viewings have taken place. The property only went on rightmove on Thursday afternoon, and I cancelled Thursday evening, so I wouldn't have thought there would be time. I may be wrong there though.

Modern auction means the buyers will pay all the fees including EA fees as one fee. Sometimes vendors have to pay for the auction pack. 

The money involved is not insignificant. I would either avoid or offer a lower price to take this into account. 

FreeBear

csgohan4 said: Modern auction means the buyers will pay all the fees including EA fees as one fee.

I suspect the vendor will be liable for some fees if he/she pulls out - The costs should be detailed in the contract somewhere.

As for the EA claiming to have a buyer and the property is already "sold". phhhht...

user1977

ace500 said:

user1977 said:

ace500 said:

 they are telling me I owe them the full fee as they only allow serious buyers to view properties and the property is already 'sold'.

Well, is it? I thought the whole point of MMOA was that the buyer pays the EA's (extortionate) fees, so why aren't they just taking the fees they've got from the buyer? Or does their contract say the vendor also pays a fee (and is that only in the event you pull out without a sale having been achieved - in which case, it ain't "sold", surely?)

No it isn't. The auction would run for 28 days. The only way they could claim it is 'sold' would be if they had had a bid before I cancelled, but they surely can't say that would be the last bid to come in, so they wouldn't be able to name an 'ultimate purchaser' as the property is now not going to be sold.

Ok - but what does the contract say about the fees if you withdraw the property from sale before a buyer is found?