14 Day cooling off period cancellation

Digital_bath

eddddy said:

Digital_bath said:

There is no mention of 'sole selling rights' in the contract, just a definition of what they define as 'sole agent'

So are you convinced now that no sales commission is payable?

I guess I'm just wondering how I word this to them. When i mentioned about sole agent vs sole selling, they said they are the same thing.

eddddy

Digital_bath said:

eddddy said:

Digital_bath said:

There is no mention of 'sole selling rights' in the contract, just a definition of what they define as 'sole agent'

So are you convinced now that no sales commission is payable?

I guess I'm just wondering how I word this to them. When i mentioned about sole agent vs sole selling, they said they are the same thing.

Then the estate agent is either daft or a rogue.

You can point them at the legislation that defines 'Sole Selling Rights' and 'Sole Agency', if you want:
https://www.legislation.gov.uk/uksi/1991/859/schedule/made


But if they refuse to back down - you just have to ignore them for the moment, and see if they eventually send you a bill after you exchange/complete.

Then, preferably, you challenge the bill with the Property Ombudsman (if they are members of TPOS), or wait for them to take you to court.

Digital_bath

saajan_12 said:

Digital_bath said:

eddddy said:

Typically, the situation will be like this.


If it's a 'Sole Agency' agreement, there shouldn't be any need to cancel the agreement. (And therefore you wouldn't have to pay them any costs associated with cancellation.)

You simply tell them that you have found a buyer privately, so you don't want any more viewings arranged, for the moment.

No sales commission should be payable to the estate agent, because the buyer was not introduced by them or introduced by another agent.


If the estate agent is saying they introduced the buyer (or that another agent introduced the buyer), ask them why they believe that. For example, did they talk to the buyer at any point about your property?



Edit to add

But you have to bear in mind that you are still under contract with the estate agent until you terminate the agreement -  so that would be after the minimum contact period, and with 28 days notice.

So if this sale falls through, you'll have to go back to this agent, unless/until you've properly terminated their contract.


And also...

There might be a 'withdrawal fee', or similar, to pay when you finally terminate the agreement (after the minimum contract period). Although, if your private sale goes through, but you never terminate the agreement - it might be interesting to see what happens.

The estate agent is claiming that we are the 'other' agent and their main fee is payable where the purchaser is introduced during the period where they are sole agent. As the private buyer was 'introduced' by us during the sole agency period, should the family friend go on to purchase the property, at the point of exchange, their fees are payable.

There is a specific term for what they want, its "sole selling rights". Unfortunately they didn't put that in their contract (do check). If they had, all advice would have been that you don't sign in the first place. They can't entice you with one contract, and now argue they want the other one after its a done deal. 

The point of "sole agency" is they don't want to compete with another commercial entity who has the resources and motivation to find a buyer, but they realise most clients won't want to pay in the unlikely event the client finds their own private buyer. 

So check the wording in your contract, but unless it says words to the effect of 'sole selling', their argument is dead in the water. No need for goodwill or negotiation. The options are cancel and pay costs of the ad / viewings, or let it run and pay £0. 

When you say ‘let it run’ would we be able to sell our property during the 28 day notice period? We have already cancelled the contract 2 days ago 

eddddy

Digital_bath said:

When you say ‘let it run’ would we be able to sell our property during the 28 day notice period? 

If you let the contract run, there is nothing stopping you selling your property to your privately introduced friend at any time - before the 28 day notice starts, during the 28 day notice period, or after the 28 day notice period.  And no selling fee will be due to the estate agent.

Digital_bath said:

We have already cancelled the contract 2 days ago 

It sounds like the estate agent has rejected your cancellation, because they are asking you to pay a selling fee.

But anyway, you can try saying to the estate agent that you've changed your mind, and you don't want to cancel.

That way you won't have to pay any fees associated with cancellation.

But just to clarify -  if you cancel the contract, there is no 28 day notice period. It would be immediate cancellation.