Estate Agent Contract

20122013

As a seller, I have read through some Estate Agent TCs and I would like to know what terms are deem negotiable? as I would prefer not to be seem as picky but reasonable. We have agreed on the fees and tie in terms (but not reflected on the updated version).  However, there are other clauses which  are also to do with fees and penalties etc. Welcome your thoughts.

user1977

Would help if you told us which terms you are concerned about.

20122013

user1977 said:

Would help if you told us which terms you are concerned about.

There is a long list and I would like to start with this: The TCs from‘xxxx estate agents limited' titled 'SOLE AGENCY AGREEMENT'

1/ SOLE AGENCY AGREEMENT but later it reads

a/
‘Co-operation of sales details: ‘xxxx estate agents limited’ co-operate with several other local estate agents and therefore reserve the right, at no extra cost to the vendor, to appoint sub agents in the sale of the property.  in the event of a sub agent introducing an applicant who makes a satisfactory offer and then completes such a transaction, the introduction will be deemed as xxxx estate agents limited’s introduction and shall not prejudice our right to commission as outlined herein.

And also further down the TCs:

b/
EXPLANATION OF TERMS/POSSIBLE DUAL FEE LIABILITY:: sole agency: you will be liable to pay remuneration to ‘xxxx estate agents limited’ in addition to any other costs and charges agreed.  if at any time unconditional contracts are exchanged with a purchaser introduced by ‘xxxx estate agents limited’ during the period of our sole agency or with whom we had negotiations about the property during that period or with a purchaser introduced by another agent or source during that period.  (if other estate agents or sources are involved by you in the marketing of your property) then you will be liable to pay our multiple agency fee which is currently 2.5% with a minimum fee of £4,000.00 plus vat (£4,800.00 inclusive of vat).

I am noting that the title says Sole Agency agreement  and then added 'a' and 'b' to me it means the fixed fee is not the fixed fee as there maybe other fees, even if a buyer not found by ‘xxxx estate agents limited'? and I would like to know whether there is anything I need to be mindful of? 

BarelySentientAI

That seems like a pretty normal sole agency clause to me.

a) effectively means that they have several 'brands' but all count as the same EA.

b) means that if someone buys your house during the sole agency period, this EA gets their money (which is generally what sole agency means), if someone this EA finds then later buys your house through a different EA, this EA gets their money (standard clause) and if you deliberately ask another EA to market your house then the fees change (so don't instruct anyone else whilst you have a sole agency contract).

RHemmings

The dual fee liability seems fine to me. You just need to be careful. If you leave the agent (after the sole agency period) ask the first agent for a list of people introduced to the property. Then, tell any future agents of this list. And, don't accept an offer through the second (or later) agent from a buyer that's on the list. I think the 'effective introduction' expires after six months or so. 

Is the EA a member of the Property Redress Scheme (PRS), or The Property Ombudsman Scheme (TPOS)? You should be able to find that information on their website. 

gelato_cat

If they themselves sell your house, have they quoted you a fixed fee, or a percentage of the sale price for that? 

Clause B in your post above is fairly standard, although I've never seen a contract that quotes a minimum fee.

I've never seen anything like Clause A. For the avoidance of doubt, I think they need to specify the names of these "sub agents" and you also need a time limit to be specified. Eg you go with XXXX Estate Agents Limited, they don't sell it so eight months later you go with, and sell through, YYYY Estate Agents Limited, who was also a "sub agent" and brought some potential buyers to you previously. Under that clause, you need to make sure XXXX can't claim that the buyer came through YYYY during the time they were a "sub agent".

20122013

I noted all the above points. I will ask XXXX Estate Agents Limited, to put in writing the names of the subcontractos are.

May I check, as I am negotiating with XXXX Estate Agents Limited, the tie in 6 weeks and then notice period is 28 days  aftter  7 weeks, I can get another agent / whoever finds a buyer then I do not need to pay any fee to XXXX Estate Agents Limited? 

gelato_cat

20122013 said:

I noted all the above points. I will ask XXXX Estate Agents Limited, to put in writing the names of the subcontractos are.

May I check, as I am negotiating with XXXX Estate Agents Limited, the tie in 6 weeks and then notice period is 28 days  aftter  7 weeks, I can get another agent / whoever finds a buyer then I do not need to pay any fee to XXXX Estate Agents Limited? 

I don't think we can offer an informed opinion on that based on the small extract we've seen of the contract.

20122013

gelato_cat said:

If they themselves sell your house, have they quoted you a fixed fee, or a percentage of the sale price for that? 

Clause B in your post above is fairly standard, although I've never seen a contract that quotes a minimum fee.

I've never seen anything like Clause A. For the avoidance of doubt, I think they need to specify the names of these "sub agents" and you also need a time limit to be specified. Eg you go with XXXX Estate Agents Limited, they don't sell it so eight months later you go with, and sell through, YYYY Estate Agents Limited, who was also a "sub agent" and brought some potential buyers to you previously. Under that clause, you need to make sure XXXX can't claim that the buyer came through YYYY during the time they were a "sub agent".

During valuation,  I was told  it was a fixed fee (not pecentage). However, in the valuaition email the fee went up and says 'MIN FEE'.  I had highlighred the fee is different and asked to see the TCs I was told a blank copy will be sent. I received a copy with completed details including the fee still unchanged and he did not want to increase the asking price. I am realstic and know the value. I did manage to get the asking price change (which I am happy with), later another simiilar property was listed at a higher price. The agent wanted to match that asking price.. (Due to Limited choices of 'able' agents, I will see how the negotiation goes and then decide). 

gelato_cat

20122013 said:

gelato_cat said:

If they themselves sell your house, have they quoted you a fixed fee, or a percentage of the sale price for that? 

Clause B in your post above is fairly standard, although I've never seen a contract that quotes a minimum fee.

I've never seen anything like Clause A. For the avoidance of doubt, I think they need to specify the names of these "sub agents" and you also need a time limit to be specified. Eg you go with XXXX Estate Agents Limited, they don't sell it so eight months later you go with, and sell through, YYYY Estate Agents Limited, who was also a "sub agent" and brought some potential buyers to you previously. Under that clause, you need to make sure XXXX can't claim that the buyer came through YYYY during the time they were a "sub agent".

During valuation,  I was told  it was a fixed fee (not pecentage). However, in the valuaition email the fee went up and says 'MIN FEE'.  I had highlighred the fee is different and asked to see the TCs I was told a blank copy will be sent. I received a copy with completed details including the fee still unchanged and he did not want to increase the asking price. I am realstic and know the value. I did manage to get the asking price change (which I am happy with), later another simiilar property was listed at a higher price. The agent wanted to match that asking price.. (Due to Limited choices of 'able' agents, I will see how the negotiation goes and then decide). 

I'm curious as to why you've picked this agent. I think I'd be going with a different agent with a clearer contract.

20122013

gelato_cat said:

20122013 said:

gelato_cat said:

If they themselves sell your house, have they quoted you a fixed fee, or a percentage of the sale price for that? 

Clause B in your post above is fairly standard, although I've never seen a contract that quotes a minimum fee.

I've never seen anything like Clause A. For the avoidance of doubt, I think they need to specify the names of these "sub agents" and you also need a time limit to be specified. Eg you go with XXXX Estate Agents Limited, they don't sell it so eight months later you go with, and sell through, YYYY Estate Agents Limited, who was also a "sub agent" and brought some potential buyers to you previously. Under that clause, you need to make sure XXXX can't claim that the buyer came through YYYY during the time they were a "sub agent".

During valuation,  I was told  it was a fixed fee (not pecentage). However, in the valuaition email the fee went up and says 'MIN FEE'.  I had highlighred the fee is different and asked to see the TCs I was told a blank copy will be sent. I received a copy with completed details including the fee still unchanged and he did not want to increase the asking price. I am realstic and know the value. I did manage to get the asking price change (which I am happy with), later another simiilar property was listed at a higher price. The agent wanted to match that asking price.. (Due to Limited choices of 'able' agents, I will see how the negotiation goes and then decide). 

I'm curious as to why you've picked this agent. I think I'd be going with a different agent with a clearer contract.

There are a lot of  (10?) agents in the area and I have decided to instruct this one as they seem most transparent and now the area well  (I did say they did not want to increase the asking price but did get there in the end.  I was unsure when I pointed out another matter which I know it was due to the numbers they had used but they did not acknowledge that (not big deal at this point   On the other hand the other (5) agents valued the asking price for 5-  12% higher etc. and I am not sure who will be showing the viewers around with this agent I know who will be doing the viewings, Be interested to hear your views as may highlight things I am not seeing