Sole Agency Cancelled As Per Terms - Can I Sell Privately To Introduced Buyer

Bollie_n_Stollie

Apologies as this has been raised before but I haven't been able to establish an answer as everyone's case seems to be slightly different.

I had a Sole Agency Terms Of Business, which I cancelled given the required 30 days notice as per the Terms below -

When we are instructed as a SOLE AGENT on your behalf at least 30 days’ notice in

writing must be given by either party to the other prior to cancellation of these instructions. You will be liable to pay remuneration to us (as specified in parts 1-4) if at any time contracts for the sale of the property are exchanged with a purchaser introduced by us during the terms of the Sole Agency or with a purchaser by any other estate agent during the Sole Agency.

The EA did a viewing and we were told the potential buyer was interested but didn't receive an offer as their sale fell through.  The 30 day period has expired and a potential or introduced buyer is not mentioned anywhere else in the Terms.

My questions are can I now approach the potential buyer for a private sale or conversely can the potential buyer approach me for a private sale without paying the no longer contracted EA fees?

Thanks in advance for any opinions.

DullGreyGuy

It depends how well drafted their contract is, there should be a section saying that clause survives termination and therefore you cannot and it'd be a risk you are running. 

user1977

It would help to see the whole contract, but on what basis do you think you wouldn't be liable for the fees? They're "a purchaser introduced by [the agent] during the terms of the Sole Agency", and you're proposing to exchange contracts "at any time".

propertyrental

Firstly, 30 days notice is just half the requirement to cancel the contract. Were you outside the minimum contract period you agreed to (often 8, 12 or 16 weeks etc)?

There will also almost certainly be a clause elsewhere in the contact requiring payment of their fee if a buyer introduced by them during the contract period goes on to purchase within (6 months?) of the contract ending.

eddddy

Bollie_n_Stollie said:

You will be liable to pay remuneration to us (as specified in parts 1-4) if at any time contracts for the sale of the property are exchanged with a purchaser introduced by us during the terms of the Sole Agency or with a purchaser by any other estate agent during the Sole Agency.

Based on your description - the buyer was introduced by your agent during their Sole Agency period. So you have to pay the estate agent's fees if/when you exchange contracts with that buyer (at any time).




Just as background info, "Sole Agency" is a term that is defined in law. The legal definition includes the phrase "at any time"

But if the estate agent is a member of The Property Ombudsman scheme (most are), the Ombudsman sets a limit of 2 years after the contract is terminated for private sales.

So if you wait more than 2 years to privately sell to a buyer introduced by the estate agent, you don't have to pay their fees.

Albermarle

I suppose there might be some room to negotiate.
For example you could say to the EA that they do not need to get involved in the sale, or do any work, so you could offer them half their normal fee.
If they refuse then I would at least re- engage them and let them do all the chasing about, if they are going to get paid.
Maybe they will play hardball, but you can only try.

Albermarle

Estate agent fees - when selling a house after switching agencies — MoneySavingExpert Forum