Estate Agent Sole Agency Terms

il_campagnolo

Hi all

I would greatly appreciate advice on the terms of a marketing agreement offered by an estate agent to sell my property. After agreeing a good fee for a sole agency agreement, I reviewed the marketing agreement and found that the terms were more like Sole Selling terms. Upon notifying the agent, they simply added the phrase 'Sole Agency' but did not change any underlying terms. I went back again and explained that in case of a private sale we should not be liable to pay a fee. In response, they took out any mention of liability to pay the fee even if the buyer was found by us, but the rest of the terms still look suspiciously like Sole Selling terms. Furthermore, they agreement states that we will still be liable to pay a fee if contracts are exchanged up to SIX MONTHS after the marketing agreement ends, even if the buyer was found by another agent. Is this standard? It seems exploitative, but I am no expert. These are the terms I'm particularly concerned about:

TERMS OF ENGAGEMENT
You have instructed us to act for you on a sole agency basis which applies when we are appointed as your only selling agent. Marketing will start from today for a period of 12 weeks and thereafter until notice is given (see below) to end this agreement. Our fees (in addition to any other costs or charges that may have been agreed) are to be paid in each of the following circumstances.
- If unconditional contracts for the sale of the property are exchanged in the period during which we had sole agency even if the buyer was not introduced by us but by another agent either during or after the agency period up to six months after our marketing agreement ends.
- If unconditional contracts for the sale of the property are exchanged after the period during which we have sole agency to a buyer who was introduced to the property during that period even if the buyer was neither found or introduced by us but by another agent either during or after this agency period up to six months after our marketing agreement ends.
- If conditional contracts are exchanged in the circumstances set out in the 2 clauses above and the condition has been met, contracts are deemed to have been exchanged.
If you appoint another agent at the end of our sole selling agency and we remain instructed, our terms for multiple agency terms will apply.

Very much appreciate any steer on this!

MobileSaver

I wouldn't agree to those terms and cannot think why you would either. Why they think they should be paid if another agent introduces a buyer six months after your agreement with them ends is beyond me.

If you want to use that particular estate agent then simply keep going back to them until they produce an agreement you are happy with. Alternatively contact a different agent and see if you can come to a more reasonable agreement with them.

eddddy

MobileSaver said:

I wouldn't agree to those terms and cannot think why you would either. Why they think they should be paid if another agent introduces a buyer six months after your agreement with them ends is beyond me.

I don't think that's what the contract is supposed to mean - but the lack of punctuation makes the wording bit ambiguous.

I think it's meant to be a standard 'sole agency' contract

So it's meant to mean...

"If another agent introduces a buyer during our sole agency period, and that buyer exchanges contracts during our sole agency period or within 6 months of our sole agency period ending, you have to pay us a fee"

And

"If we introduce a buyer during our sole agency period, and that buyer exchanges contracts during our sole agency period or within 6 months of our sole agency period ending, you have to pay us a fee"

Those would be completely standard terms for a 'sole agency' contract, and approved of by the Property Ombudsman.

But maybe you should clarify that with the estate agent in writing - e.g. via an email thread.

MobileSaver

eddddy said:

MobileSaver said:

I wouldn't agree to those terms and cannot think why you would either. Why they think they should be paid if another agent introduces a buyer six months after your agreement with them ends is beyond me.

But maybe you should clarify that with the estate agent in writing - e.g. via an email thread.

I agree, it's ambiguous so get it changed to be unambiguous before you sign then there's no chance of any arguments/hassle later down the road.

propertyrental

Just a thought but if you are struggling this hard to reach agreement on the precise terms with this agent, why not simply vote with your feet?

How does it compare with the terms offered by the other two agents you considered?

LegallyLandlord

I agree with @propertyrental. These estate agents are either trying to pull a fast one or are incompetent in that they don’t have clear terms and conditions. That doesn’t bode well. 

Ask them to fix it within 24 hours with a clear new contract, or go elsewhere. You might be able to use this commission rate to bargain down the rate of another agency. I’ve found they are always open to negotiation to get listings, esp when they are thin on the ground at the moment. 

theartfullodger

il_campagnolo said:

Hi all

I would greatly appreciate advice on the terms of a marketing agreement offered by an estate agent to sell my property. After agreeing a good fee for a sole agency agreement, I reviewed the marketing agreement and found that the terms were more like Sole Selling terms...............

That's your problem:  You reviewed the agreement AFTER you'd agreed to it (the fee..).   Always review the agreement & query/refuse/re-negotiate terms BEFORE agreeing to it...  

Excuse my bluntness, but obvs....

propertyrental

theartfullodger said:

il_campagnolo said:

Hi all

I would greatly appreciate advice on the terms of a marketing agreement offered by an estate agent to sell my property. After agreeing a good fee for a sole agency agreement, I reviewed the marketing agreement and found that the terms were more like Sole Selling terms...............

That's your problem:  You reviewed the agreement AFTER you'd agreed to it (the fee..).   Always review the agreement & query/refuse/re-negotiate terms BEFORE agreeing to it...  

Excuse my bluntness, but obvs....

I may be wrong but my interpretation was a bit different.

OP discussed and negotiated a fee they were happy with. EA provided contract (unsigned), presumably with the agreed fee written in, which OP reviewed. OP was reluctant to sign due to the elements described, negotiated some changes to the contract, but nonetheless still remains reluctant to sign and has posted here for advice.

However, if as per your interpretation, the OP has signed the contract, then he will either be committed to those terms, or may have 14 days to cancel the contract depending on where he signed it (EA's office or OP's home.)

TheJP

Buy cheap buy twice. What would you prefer? Expensive agent that can sell your house or a cheap agent that might sell your house but with lots of clauses.

il_campagnolo

thanks all for your input. I will clarify before signing but having showed this to an estate agent acquaintance, I believe @edddy's analysis is correct