Notice period after sole selling rights has ended

LardyDah

We signed a contract with an estate agent on 18.10.23 with the following terms, I read the bold bit to mean that after the 4 month period had ended the 28 day notice doesnt apply. I have spoken to our EA today as they still have not managed to find us a purchaser, we have however negotiated a sale with a friend, who may I add is not registered at all with this agent and no for sale board is outside of our house. The agent is arguing that we still need to pay their fee, is this correct?

The period of sole selling rights shall be 4 months (except when we are instructed to offer the property for sale by auction or tender when the period shall be until 4 months after the date set for the auction or tender) and will continue until terminated by 28 days written notice

given by you expiring on or after such period of four months.

RHemmings

Hmmm... that's not how it reads to me. To me it says that you need the 28 days notice, but that the earliest you can give notice is when the end of the 28 days notice is after the four months has expired. 

prowla

I interpet it that you have to give 28 days notice, but you could have given notice at 3 months to make it coincide with the end of the 4th month.

eddddy

LardyDah said:

We signed a contract with an estate agent on 18.10.23 with the following terms, I read the bold bit to mean that after the 4 month period had ended the 28 day notice doesnt apply.

No - the sole agency agreement continues "until terminated by 28 days written notice given by you expiring on or after such period of four months."

i.e. You have to give 28 days written notice to terminate the contract.

LardyDah said:

we have however negotiated a sale with a friend, who may I add is not registered at all with this agent and no for sale board is outside of our house. The agent is arguing that we still need to pay their fee, is this correct?

Yes - that's probably correct.

The meaning of "Sole Selling Rights" is defined in law:

SOLE SELLING RIGHTS

You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, in each of the following circumstances—

• if [unconditional contracts for the sale of the property are exchanged] in the period during which we have sole selling rights,even if the purchaser was not found by us but by another agent or by any other person, including yourself;

• if [unconditional contracts for the sale of the property are exchanged] after the expiry of the period during which we have sole selling rights but to a purchaser who was introduced to you during that period or with whom we had negotiations about the property during that period.”

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

From what you say, you introduced your buyer during the the period in which the estate agent had sole selling rights.

With "Sole Selling Rights" it doesn't matter who introduced the buyer or how they were introduced (during the contract period) - the estate agent is due their fee.



(If you had a "Sole Agency" contract, you wouldn't have to pay a fee to the estate agent if you introduced a buyer yours - without the agent's involvement.)

propertyrental

As others have said, the contract will continue after the 4 month minimum period unless you serve notice.

Notice must be 28 days (and the 28 day notice cannot end before the 4 months are up.

Perfectly standard.

Have to ask - why on earth did you tie yourself in for such a long period (4 months) and why on earth did you agree to such a long notice period?