Estate agent fees

Sprocky

I have just sold a house with an estate agent I signed up with on 7th February '24. I emailed the previous estate agent, who I had signed up with in January '23, on 8th February '24, to end my contract with them. Contracts for the sale were exchanged on 9th August '24.
After completion the solicitor dealing with the sale sent the confirmation of sale to the wrong estate agents, the original agents. These agents are now saying that I need to pay fees to them as they introduced the buyer originally. 
I was not asked to supply a list of names of viewers by the second estate agent.
The buyer had viewed with the first estate agent previously, apparently, but thought that the house was too expensive. They then viewed with the second estate agent months later when the price was substantially reduced and then put in an offer.
Sorry for the long post but I really don't know where I now stand. 
Do I have to pay 2 lots of full commission, half to each, or was I just out of the 6 month term ?
Really looking forward to your advice. Completely confused 😕 

Bookworm105

if the buyer did see the property with the first EA then you need to read the contracts!!!!

"introduction" clauses are a frequent feature and very often will be enforced even without the solicitor sending the details to the old EA.

what does EA 1's contract say about:
a) subsequent price changes?
b) time limits for the intro clause?

what does EA2's contract say about commission in the event of a previous introduction claim?

ReadingTim

Whilst EA No.2 probably should have mentioned that they should normally receive a list of previous viewers from a former agent, the onus is unfortunately on you to read your contract with EA No.1 and terminate it in the correct manner so as to ensure you're not liable for any fees in the event you sell it subsequently.  

Suggest you take legal advice, especially as you appear to have signed with EA2 before terminating EA1 - had there been a bit of a break, it would have been easier to refute their claim, but on the face of it, they may have a point.  Sorry if this isn't what you want to hear.  

eddddy

Sprocky said:

... or was I just out of the 6 month term ?

You need to look carefully at the dates (and the contract wording). Assuming the first estate agent's contract follows the Ombudsman's guidance, the contract wording should be something like this:

...you may be entitled to a commission fee if that seller terminates your instruction and a memorandum of sale is issued by another agent to a buyer that you have introduced within 6 months of the date your instruction ended and where a subsequent exchange of contracts takes place.

 So...

• What date did your contact with the first estate agent terminate? (It's unlikely to be the date you sent the email, because you typically have to give 2 or 4 weeks notice.)
  

• What date did the second estate agent issue a memorandum of sale?

Sprocky said:

Do I have to pay 2 lots of full commission...

If there is less than 6 months between termination and issuing the memo...

Are both Estate Agents (especially the second estate agent) members of The Property Ombudsman Scheme?


If they are, you're very lucky, because it seems like the second estate agent probably broke the Property Ombudsman's Code of Practice.

Here are the key clauses in the Code of Practice that the second estate agent has potentially broken (the ones in bold are especially relevant)...

5t
ask the seller if they have previously instructed another agent in respect of the property, and if advised yes: 

ask to see a copy of the previous agency agreement to ensure that by instructing you, the seller will not be in breach of contract (note that if the seller is unable or refuses to supply a copy, you must advise, in writing, that you are unable to advise as to whether the seller is in breach of their agreement with the previous agent);

specifically advise of the possible liability to pay more than one agent;

establish if an interested party has previously viewed through another agent;

if an interested party has previously viewed through another agent and makes an offer through you, you must disclose this information and refer the sale back to that agent as they will be deemed to have introduced the buyer 

Link: https://www.tpos.co.uk/images/codes-of-practice/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A4_FINAL.pdf

So you should make a written complaint to the second estate agent saying that they should refund your fees, because they've broken the Property Ombudsman's Code of Practice (as quoted above).

If they refuse to refund, then you complain to the Ombudsman.


But if the second estate agent isn't a member of the Property Ombudsman Scheme, you might be in a trickier position.