Appointing New Estate Agent

BargainJunky

Can anyone help.

When swapping estate agents what happens if a potential buyer that the first estate agent introduced (put in an acceptable offer but unable to proceed at that time) gets introduced again by second estate agent and goes on to buy the property are we liable for two sets of fees?

It hasn't happened yet but existing agent was on notice to terminate the agreement and introduced a buyer whilst on notice - we were initially told that the buyer had accepted an offer on their property (true) and that their buyer had multiple offers and was deciding which one to accept (not 100% true as they are now trying to get improved offers and if they dont they will not be accepting any of them).

Not sure if its relevant but property is being sold under POA and is vacant possession. 

Flugelhorn

I think it depends on what is written in your contract - they usually have a time period after you finish with them in which if anyone they introdcued buys the place through someone else then they get the fee too

I paid two agents once, the first was a one man band, worked quite hard but didn't get any offers - he was only charging 1/2 % inc vat and as I later gathered from elsewhere my payment kept the wolf from the door for a few weeks . I paid the second agent 1% inc VAT too. TBH it was not an expensive property and the total was OK - might feel a  bit different if it was >1% and a 500K property 

RHemmings

I believe that if both agents are members of The Property Ombudsman scheme, that the OP should be protected against having to pay a double set of fees. This has been mentioned in other threads. 

More information here: https://www.tpos.co.uk/news-media-and-press-releases/press-releases/item/tpo-issues-guidance-to-agents-on-dual-fees-2

EssexHebridean

When we changed agents we obtained a list of all parties introduced by the original agent, and that was given to our new agents in order that if they received any enquiries from any of those parties, they could refer them back to the original agent. (In our case, there was such a contact, the potential buyer was referred back but the old agent took the unwise decision to tell them that the property was no longer on the market (they knew it was) - as a result, the matter ended up proceeding through the second agent and the first one was told in no uncertain terms that we would be paying them nothing... ) The list should mean that confusion - and the risk of having to pay double comms - can be avoided. 

BargainJunky

Thanks everyone it is years since I have bought or sold a property so things have changed quite a bit.

The fees from the existing agent would be £2K plus VAT with similar fees when we instruct a new one.  Have lost what little faith we had in the existing agent (property SSTC twice last year to another buyer - who basically messed us around for nearly six months yet the agent kept telling us all would be fine as he was a cash buyer and it would be the quickest sale they had ever done).

The list of introductions from the existing agent makes total sense especially as there is current interest from a buyer but at the moment they are unable to proceed.

eddddy

This is all standard stuff, and all estate agents will be used to dealing with this - but some dodgy estate agents might try some "dirty tricks".



So in simple terms, you do the following...

You tell the first estate agent (in writing) something like this:

"Please provide a list of the names of prospective buyers that you believe you have introduced to my property, and for whom you would claim a fee if they eventually buy."

Then you pass that list to the second estate agent and tell them (in writing) something like this, before you sign their contract:

"The people on this list were introduced to my property by my previous agent. If anyone on this list approaches you in relation to my property, please refer them back to my previous agent.

I will not, under any circumstances, pay you a fee if a person on this list goes on to purchase my property"

So anyone introduced by the previous agent would make their offer through the previous agent, and the previous agent would get their fee - and the new agent would get no fee.

As I say, that's the standard process.

BargainJunky

eddddy said:

This is all standard stuff, and all estate agents will be used to dealing with this - but some dodgy estate agents might try some "dirty tricks".



So in simple terms, you do the following...

You tell the first estate agent (in writing) something like this:

"Please provide a list of the names of prospective buyers that you believe you have introduced to my property, and for whom you would claim a fee if they eventually buy."

Then you pass that list to the second estate agent and tell them (in writing) something like this, before you sign their contract:

"The people on this list were introduced to my property by my previous agent. If anyone on this list approaches you in relation to my property, please refer them back to my previous agent.

I will not, under any circumstances, pay you a fee if a person on this list goes on to purchase my property"

So anyone introduced by the previous agent would make their offer through the previous agent, and the previous agent would get their fee - and the new agent would get no fee.

As I say, that's the standard process.

The only problem I can see with this is if someone introduced by the first agent contacts the new one then as its not in their interest to do anything ignores the interest and does not pass it back to the first agent therefore potentially loosing us a sale.

eddddy

BargainJunky said:

The only problem I can see with this is if someone introduced by the first agent contacts the new one then as its not in their interest to do anything ignores the interest and does not pass it back to the first agent therefore potentially loosing us a sale.

So you mean that...

• a prospective buyer who was introduced by the old agent doesn't know how the system works, and contacts the new agent, instead of the old agent

• and instead of doing the "honest" thing of referring the prospective buyer back to the old agent, the new agent just blanks them. e.g. doesn't return their calls etc?

Yep - if you hire an immoral estate agent, I guess that's a risk.

There are many other similar things that an immoral estate can do as well. Like let their "friend" be the first viewer of a property, and then blank any other people who want to view the property.

EssexHebridean

This is pretty much the situation we encountered, albeit ours was almost worse as an outright lie was told. Fortunately the interested party then went back to the new agents, who they were well aware were marketing the property, and those agents then filled us in on the exact situation. That was at the point which we wrote a letter to the old agents confirming that we knew what they'd done, and that as a result of their blatant attempt to impede a sale of our property we would not be paying them a penny...they didn't waste any time in reassuring us that no, they completely understood, and they were very sorry, and no, nothing was payable to them....