Selling house to friend when listed, what happens with E.A. Commission

eddddy

If your contract says "Sole Agency", that's a special term that is defined in law. (See below)

Based on what you say happened, and the legal definition of "Sole Agency", it doesn't sound like you are liable to pay a fee to the estate agent.

But some estate agents add 'nasty' extra terms to their Sole Agency contracts - which could make you liable. So it's best to read your contract carefully. (I guess it's questionable whether it's legal to add extra terms that modify the legal meaning of 'Sole Agency' - but it might involve fighting a court case to find that out.)





The legal definition of "Sole Agency"...

The Estate Agents (Provision of Information) Regulations 1991

5.—(1) If any of the terms “sole selling rights”, “sole agency” and “ready, willing and able purchaser” are used by an estate agent in the course of carrying out estate agency work, he shall explain the intention and effect of those terms tohis client in the manner described respectively below, that is to say—
...

(b)“sole agency”, by means of a written explanation having the form and content of the statement set out in paragraph (b) of the Schedule to these Regulations

...

(b) “SOLE AGENCY

You will be liable to pay remuneration to us, in addition to anyother costs or charges agreed, if at any time [unconditional contractsfor the sale of the property are exchanged] —

• with a purchaser introduced by us during the period of our soleagency or with whom we had negotiations about the property during thatperiod; or

• with a purchaser introduced by another agent during that period.”

Link: https://www.legislation.gov.uk/uksi/1991/859/made

saajan_12

propertyrental said:

murphydog999 said:

Nothing in the contract that mentions this situation.

OK. Is your contract

1) multi-agent. Several agent market te property and any agent that introduces a buyer gets paid
2) sole-agent. Only one agent, and if that  an agent introduces a buyer, they get paid. 
3) sole selling rights. Only one agent, and that agent gets paid if the property sells, irrespective of how the buyer is introduced.

Your contract will specify.....

Me being pedantic.. but in a sole agent contract, usually the first agent will demand payment even if another agent introduces a buyer that buys within a specified period.  

murphydog999

Thanks for all comments, it’s good to address these situations. I didn’t need to worry, she has decided not to go ahead.