Estate agent closed mid way through sale, no signed contract

user1977

Any more known about the circumstances of them ceasing to trade? If they were insolvent, it might take a bit of time for those administering it to catch up with monies owed. If they were solvent, I'd expect them to either wind up the ongoing business, or sell it to somebody else, not just suddenly shut up shop. 

endplate

Thanks for the reply everyone. 

Just to answer a few questions posted around. 

No idea about what happened to them, I get the impression it was a decision rather than administration, they only had 2 or 3 properties for sale when we chose them. 

The sales progression team (I should say lady) is a totally separate company based from the solicitors we chose. 

I will 100% be asking for some sort of discount just because I wasn't actually happy doing all the viewings myself, but I will do this once I get an invoice and sales are all finalized etc... I don't actually have a problem paying them some of the fees as they did sell the house in 4 days, with some help from myself.

If the company no longer exists, then who can I actually pay, they can invoice me but guessing it will be a different name? Do i have to pay an invoice for a totally different company/person. 

Fact they have probably deleted all emails/records, even the right move listing has totally gone (not showing as sold has just disappeared) how can they prove anything? 

diggingdude

When you sell, keep the money for agents in a pot separate to anything else, DO NOT SPEND IT like so many previous posters do. 
If they chase you argue for a discount. 
Or....contact your estate agents asking for them to do something the contract says they will, if they can't fulfill that role you might be able to argue breach of contract?

Good luck with your sale

eddddy

endplate said:

I will 100% be asking for some sort of discount just because I wasn't actually happy doing all the viewings myself, but I will do this once I get an invoice and sales are all finalized etc... I don't actually have a problem paying them some of the fees as they did sell the house in 4 days, with some help from myself.

If the company no longer exists, then who can I actually pay, they can invoice me but guessing it will be a different name? Do i have to pay an invoice for a totally different company/person. 

Fact they have probably deleted all emails/records, even the right move listing has totally gone (not showing as sold has just disappeared) how can they prove anything? 

You can certainly ask for a discount. They might give you one as a 'goodwill' gesture.

But you don't seem to have mentioned any legal reason why they should give you a discount.

To win a legal case, you'd have to show that they breached the contract, and you suffered a loss as a result. That doesn't seem to have happened.

(You say that you weren't happy doing the viewings - that's not really a legal argument. Making you 'unhappy' isn't a breach of contract. Did the contract say that they would do all the viewings?)



You seem to be assuming that the the company is totally shambolic and dysfunctional - and that they will have deleted all their emails, records, files relating to their estate agency business. Why would they do that?

It would be illegal to delete them - the law requires companies to keep their records for 6 years.


But maybe if you refuse to pay, they might decide it's not worth the hassle of chasing you. I guess it depends on the mindset of the company.

Slinky

Normally estate agent fees are deducted from the sale proceeds by your solicitor and paid direct to the agent without you ever seeing the money. What correspondence has there been from your solicitor about your estate agent? They will be expecting to be invoiced by the EA.

eddddy

Slinky said:

Normally estate agent fees are deducted from the sale proceeds by your solicitor and paid direct to the agent without you ever seeing the money. What correspondence has there been from your solicitor about your estate agent? They will be expecting to be invoiced by the EA.

You can instruct your solicitor not to pay the EA, if you want.

But that would typically put you in breach of contract with the EA. Your solicitor might warn you about the risks of breaching the contract.

(I doubt the solicitor would give any legal advice about whether you have a good case for withholding part/all of the of the EA's fee - unless you pay the solicitor for their advice.)

[Deleted User]

Pay nothing until they send you a request for payment.

eddddy

[Deleted User] said:

Pay nothing until they send you a request for payment.

As explained above, EAs don't generally send requests for payment to sellers. They send them to the seller's solicitor.

(And I doubt the OP planned to make any unrequested payments to the EA!)

TripleH

Is anyone taking over the business of the Estate Agent? Just because the previous owners view insufficient money in the venture doesn't mean they haven't 'sold' or transferred the book of business elsewhere, likewise it may be that the parent company are keeping all 'sold' properties with the aim of getting their fees on completion without having to do any further work.

I'd talk to your conveyancer and advise them of the development. Might be worth, if you do get a final bill from them, to hold back the funds to pay (with the conveyancer) but challenge the bill on the grounds they didn't complete the job (again going on what your conveyancer advises).

Crashy_Time

endplate said:

Hi All

I sold my house roughly 3 months ago through a fairly new estate agent, we've had some issues in the chain above us so no movement on house purchase. 
I found out last week through our sales progression team that our estate agent we sold with have stopped trading over a month ago, their parent company is still around but they no longer have an estate agent business. I also never actually signed a contract with them, we sold quickly and they sent us a contract but I questioned some name spellings and never received anything back. 

Where do I stand with paying them once completed? I have no contract or anything written in emails about pricing, but they did list the house and arrange viewings (i did the viewings myself) 

Luckily the fact I have a sales progression team from another company means I have some contacts who can help where estate agents normally would, they did mention they have 1 person to deal with from the parent company.  But the fact they themselves have not told me is very poor. 

I see it the below
1) I pay all as if nothing happens
2) I argue there is no contract so I don't owe them anything 
3) I agree some sort of reduced pricing based on no contract and they have done no work since agreeing sale. 
4) I pay nothing as the company i am dealing with are no longer around. 

Any advise would be appreciated. 

Why did they stop trading?