With an Agent but found my own buyer

fazrewards

Hi guys,

I have had a property up for sale for 3 months with the agent and it has not sold. In the contract it suggests that term of contract is 2 months agreed for marketing but the agent also suggests even after completion takes place to any buyer introduced or not introduced by the agent, within 6 months after such expiry I would be liable to pay full fees to the agent.

After some conversations and networking, I have come across a cash buyer for my property who is serious but wants to go through me directly. I have suggested him to go to the agent but he does not want to. 

Just wanted to get some advice what to do as i first will discuss with the agent on circumstances and willing to pay them a fee to come to a solution.

user1977

Can you quote exactly what your contract says?

Brie

If you've signed a contract you need to stick to those terms, whatever they are.

Greatgimp

You need to look for 'sole selling rights' or 'sole agency rights'.

fazrewards

user1977 said:

Can you quote exactly what your contract says?

Sole Selling Rights –Liability to Pay CommissionThe client will be liable to pay remuneration to the Agent, in addition to any other costs or charges agreed, in each of the following circumstances:

(i)If unconditional contracts for the sale of the property are exchanged in the period during which the Agent has sole selling rights, even if the purchaser was not found by the Agent but by another agent or by any other person, including the client;during the sole selling rights period.

(ii) If unconditional contracts for the sale of the property are exchanged after the expiry of the period during which the Agent has sole selling, the client will be liable to pay the full remuneration to the Agent under paragraph 

ii) if:Through another agent such exchange of contracts takes place to a buyer introduced by the agent, within 6months after such expiry; orcompletion of a sale of the Property where no contracts are exchanged within 6months;

Where no other agent is involved, such exchange or completion takes place to any buyer introduced or not introduced by the agent, within 6monthsafter such expiry.

Highlighted the last paragraph

user1977

You are somewhat on the back foot as the contract says you'd be liable, but I think there is caselaw to the effect that such clauses are only enforceable where the agent actually did some material work in finding the buyer. Others might be able to quote chapter and verse.

fazrewards

user1977 said:

You are somewhat on the back foot as the contract says you'd be liable, but I think there is caselaw to the effect that such clauses are only enforceable where the agent actually did some material work in finding the buyer. Others might be able to quote chapter and verse.

Yep - My stupidity for not reading the terms. I assumed it was a 2 month contract and then if it did not sell, I was free to do what I want.

Hoenir

fazrewards said:

After some conversations and networking, I have come across a cash buyer for my property who is serious but wants to go through me directly. I have suggested him to go to the agent but he does not want to. 

What's the buyer hiding from you ? Genuinely interested parties would have no qualms. Expect to be "bullied" by this cash buyer. 

fazrewards

Hoenir said:

fazrewards said:

After some conversations and networking, I have come across a cash buyer for my property who is serious but wants to go through me directly. I have suggested him to go to the agent but he does not want to. 

What's the buyer hiding from you ? Genuinely interested parties would have no qualms. Expect to be "bullied" by this cash buyer. 

Good question. Yet to be determined - I am just at the stage where the agent is not getting anywhere and willing to explore other options.

NameUnavailable

Has this cash buyer made an offer that is acceptable to you?

If so, have you asked for proof of funds?

I was strung along for months by a supposed 'cash buyer' who then disappeared into thin air. There's no reason why they shouldn't go via your agent, it should make no difference to them.

fazrewards

NameUnavailable said:

Has this cash buyer made an offer that is acceptable to you?

If so, have you asked for proof of funds?

I was strung along for months by a supposed 'cash buyer' who then disappeared into thin air. There's no reason why they shouldn't go via your agent, it should make no difference to them.

Yes - He has already started instructing solicitors, so is very serious.

That is not issue at this stage, the issue I want to get into is the agent side and how to best approach it. I am willing to go and speak to them