Estate Agent Fees

321HUNTER123

Hi. 

I had my property on the market in Nov 2022 with an estate agent. I had an offer but the deal fell through. 

I then had my property advertised with several estate agents but didn’t sell. 

Now in June 2024 the original person who offered on my property in Nov 2022 has contacted me and made an offer, even though I’m not on the market. 

If I sell to them will I have to pay fees to the estate agent from Nov 2022 who made the introduction?
Thanks

user1977

What does their contract say about it?

321HUNTER123

I can’t find it as it was so long ago. 🤦🏻‍♂️

eddddy

Is the estate agent from 2022 a member of The property Ombudsman Scheme (TPOS)?

If so, they can claim a fee if you sell to somebody they introduced within 2 years of you terminating the contract with them.

e.g. If you terminated your contract with the estate agent in November 2022, you have to wait until after November 2024 to sell, in order to avoid paying the estate agent's fee.


If the estate agent is not a member of TPOS, you need to read their contract to see what time limit it specifies. 

NameUnavailable

If fees are payable maybe get the buyer to put the enquiry/offer to the agent, who will then contact you - you show little interest in selling now and ask if you did consider it what would their fees be. Then negotiate! If they could get an easy sale for half the commission rather than no sale I bet they'd take it.

321HUNTER123

Am I ok as I did list my property with other estate agents after cancelling my contract with the first estate agent?

eddddy

321HUNTER123 said:

Am I ok as I did list my property with other estate agents after cancelling my contract with the first estate agent?

No - that wouldn't make any difference.

propertyrental

"If no other estate agent is involved this time limit extends to 2 years"

Seems pretty clear.

* What exact date did you serve notice to end the EA's "sole selling rights" contract? 

* What was the notice period ie what exact date did your notice expire??

* Had the minimum contract period passed by the date your notice expired?

* Has 2 years passed since that date?

321HUNTER123

I ended the contract in the cooling off period. 

eddddy

321HUNTER123 said:

I ended the contract in the cooling off period. 

So I guess you mean you cancelled the contract during the 14 day cooling-off period (but during that time somebody viewed your property, and they've now come back to potentially make an offer.)

• You can't cancel a contract during those 14 days if the contract has been completed

• The estate agent's contract was essentially to introduce a buyer.

• If you sell to this prospective buyer, I guess the estate agent would now argue that they introduced a buyer during those 14 days, so the contract was completed, so the cancellation wasn't valid. So you would owe them a fee

But there are also some 'grey areas', so I don't know if the Property Ombudsman or a court would look at it differently.

propertyrental

I agree with edddy here. How did this buyer even know your property was for sale? Presumably the EA had erected a 'For Sale' sign, or listed the property on Rightmove, or something similar.

And usually sellers are asked to approve such listings/agree to erection of a board etc.

If so, you implicitly accepted the contract and agreed to the EA expending money on marketing (not mention accompanying a viewing?), thus overruling your right to a cooling off period.