Need advice

kiwi07

RAS said:

Walk away.

That is why this agent is so cheap 75% plus vat - because there is a catch! 

eddddy

kiwi07 said:

RAS said:

Walk away.

That is why this agent is so cheap 75% plus vat - because there is a catch! 

I'd be pretty certain it's just badly written contract wording by the estate agent. Phone them and ask, and then get it clarified by email.

Most estate agents are members of the Property Ombudsman Scheme (TPOS) which specifies what an estate agent's contract must say.

In fact, assuming the estate agent is a member of TPOS, and you complain to TPOS, the TPOS rules will override what the estate agent's contract says.

Here's an extract from the TPOS rules:

Fee Entitlement and Client Liability

5t At the time of receiving instructions from a seller you must:

• point out and explain clearly in your written Terms of Business that 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 (see definition of effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months of the date your instruction ended and where a subsequent exchange of contracts takes place.

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

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

I strongly suspect that somebody at the estate agents has just made a mess of paraphrasing the above.

kiwi07

eddddy said:

kiwi07 said:

RAS said:

Walk away.

That is why this agent is so cheap 75% plus vat - because there is a catch! 

I'd be pretty certain it's just badly written contract wording by the estate agent. Phone them and ask, and then get it clarified by email.

Most estate agents are members of the Property Ombudsman Scheme (TPOS) which specifies what an estate agent's contract must say.

In fact, assuming the estate agent is a member of TPOS, and you complain to TPOS, the TPOS rules will override what the estate agent's contract says.

Here's an extract from the TPOS rules:

Fee Entitlement and Client Liability

5t At the time of receiving instructions from a seller you must:

• point out and explain clearly in your written Terms of Business that 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 (see definition of effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months of the date your instruction ended and where a subsequent exchange of contracts takes place.

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

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

I strongly suspect that somebody at the estate agents has just made a mess of paraphrasing the above.

So TPOS confirms that if I sell my property without a new agent, so assuming privately, during 2 years after termination of contract, first EA can still claim their commission? 

Yes, EA is the member of TPOS.

eddddy

kiwi07 said:

eddddy said:

kiwi07 said:

RAS said:

Walk away.

That is why this agent is so cheap 75% plus vat - because there is a catch! 

I'd be pretty certain it's just badly written contract wording by the estate agent. Phone them and ask, and then get it clarified by email.

Most estate agents are members of the Property Ombudsman Scheme (TPOS) which specifies what an estate agent's contract must say.

In fact, assuming the estate agent is a member of TPOS, and you complain to TPOS, the TPOS rules will override what the estate agent's contract says.

Here's an extract from the TPOS rules:

Fee Entitlement and Client Liability

5t At the time of receiving instructions from a seller you must:

• point out and explain clearly in your written Terms of Business that 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 (see definition of effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months of the date your instruction ended and where a subsequent exchange of contracts takes place.

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

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

I strongly suspect that somebody at the estate agents has just made a mess of paraphrasing the above.

So TPOS confirms that if I sell my property without a new agent, so assuming privately, during 2 years after termination of contract, first EA can still claim their commission? 

No. Maybe it's easier using an example...

• The EA introduces a potential buyer named Sam Smith (e.g. the EA arranges a viewing for Sam Smith)

• Sam Smith doesn't make an offer

• Then you terminate the EA's contract on 1st March 2025

• If Sam Smith changes their mind and buys your house through another EA within 6 months (i.e. before 1st September 2025) - you have to pay the first EA a fee

• If Sam Smith changes their mind and buys your house without another EA being involved within 2 years (i.e. before 1st March 2027) - you have to pay the first EA a fee

But that only applies to Sam Smith, or other people introduced before 1st March 2025 by the first EA (or another EA).

It doesn't apply to anyone introduced after 1st March 2025 (or to any buyer you found privately).


For example, if you move to a new estate agent on 2nd March 2025, and they introduce somebody named Alex Green on 2nd March 2025 and Alex Green goes on to buy your house - you don't have to pay the first EA a fee.


All the above is completely standard, and you will find those terms in the vast majority of estate agents' contracts.

 

kiwi07

eddddy said:

kiwi07 said:

eddddy said:

kiwi07 said:

RAS said:

Walk away.

That is why this agent is so cheap 75% plus vat - because there is a catch! 

I'd be pretty certain it's just badly written contract wording by the estate agent. Phone them and ask, and then get it clarified by email.

Most estate agents are members of the Property Ombudsman Scheme (TPOS) which specifies what an estate agent's contract must say.

In fact, assuming the estate agent is a member of TPOS, and you complain to TPOS, the TPOS rules will override what the estate agent's contract says.

Here's an extract from the TPOS rules:

Fee Entitlement and Client Liability

5t At the time of receiving instructions from a seller you must:

• point out and explain clearly in your written Terms of Business that 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 (see definition of effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months of the date your instruction ended and where a subsequent exchange of contracts takes place.

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

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

I strongly suspect that somebody at the estate agents has just made a mess of paraphrasing the above.

So TPOS confirms that if I sell my property without a new agent, so assuming privately, during 2 years after termination of contract, first EA can still claim their commission? 

No. Maybe it's easier using an example...

• The EA introduces a potential buyer named Sam Smith (e.g. the EA arranges a viewing for Sam Smith)

• Sam Smith doesn't make an offer

• Then you terminate the EA's contract on 1st March 2025

• If Sam Smith changes their mind and buys your house through another EA within 6 months (i.e. before 1st September 2025) - you have to pay the first EA a fee

• If Sam Smith changes their mind and buys your house without another EA being involved within 2 years (i.e. before 1st March 2027) - you have to pay the first EA a fee

But that only applies to Sam Smith, or other people introduced before 1st March 2025 by the first EA (or another EA).

It doesn't apply to anyone introduced after 1st March 2025 (or to any buyer you found privately).


For example, if you move to a new estate agent on 2nd March 2025, and they introduce somebody named Alex Green on 2nd March 2025 and Alex Green goes on to buy your house - you don't have to pay the first EA a fee.


All the above is completely standard, and you will find those terms in the vast majority of estate agents' contracts.

 

Thanks for explanation. May be EA got the wording wrong as it looks like they try to implement Sole selling right for a period of 2 years after termination disregarding if a buyer was first introduced by them or not.

GDB2222

kiwi07 said:

eddddy said:

kiwi07 said:

eddddy said:

kiwi07 said:

RAS said:

Walk away.

That is why this agent is so cheap 75% plus vat - because there is a catch! 

I'd be pretty certain it's just badly written contract wording by the estate agent. Phone them and ask, and then get it clarified by email.

Most estate agents are members of the Property Ombudsman Scheme (TPOS) which specifies what an estate agent's contract must say.

In fact, assuming the estate agent is a member of TPOS, and you complain to TPOS, the TPOS rules will override what the estate agent's contract says.

Here's an extract from the TPOS rules:

Fee Entitlement and Client Liability

5t At the time of receiving instructions from a seller you must:

• point out and explain clearly in your written Terms of Business that 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 (see definition of effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months of the date your instruction ended and where a subsequent exchange of contracts takes place.

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

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

I strongly suspect that somebody at the estate agents has just made a mess of paraphrasing the above.

So TPOS confirms that if I sell my property without a new agent, so assuming privately, during 2 years after termination of contract, first EA can still claim their commission? 

No. Maybe it's easier using an example...

• The EA introduces a potential buyer named Sam Smith (e.g. the EA arranges a viewing for Sam Smith)

• Sam Smith doesn't make an offer

• Then you terminate the EA's contract on 1st March 2025

• If Sam Smith changes their mind and buys your house through another EA within 6 months (i.e. before 1st September 2025) - you have to pay the first EA a fee

• If Sam Smith changes their mind and buys your house without another EA being involved within 2 years (i.e. before 1st March 2027) - you have to pay the first EA a fee

But that only applies to Sam Smith, or other people introduced before 1st March 2025 by the first EA (or another EA).

It doesn't apply to anyone introduced after 1st March 2025 (or to any buyer you found privately).


For example, if you move to a new estate agent on 2nd March 2025, and they introduce somebody named Alex Green on 2nd March 2025 and Alex Green goes on to buy your house - you don't have to pay the first EA a fee.


All the above is completely standard, and you will find those terms in the vast majority of estate agents' contracts.

 

Thanks for explanation. May be EA got the wording wrong as it looks like they try to implement Sole selling right for a period of 2 years after termination disregarding if a buyer was first introduced by them or not.

Quick question- what is so good about this agent that you want to use them? Is it just that they are cheap?

Is it a new firm, or have they been around for years, with a solid track record? 

There’s clearly a mistake in the wording of their contract. If they thank you for pointing it out, and immediately agree to alter it, that’s a positive thing. If they refuse, I would not use them. 

kiwi07

GDB2222 said:

kiwi07 said:

eddddy said:

kiwi07 said:

eddddy said:

kiwi07 said:

RAS said:

Walk away.

That is why this agent is so cheap 75% plus vat - because there is a catch! 

I'd be pretty certain it's just badly written contract wording by the estate agent. Phone them and ask, and then get it clarified by email.

Most estate agents are members of the Property Ombudsman Scheme (TPOS) which specifies what an estate agent's contract must say.

In fact, assuming the estate agent is a member of TPOS, and you complain to TPOS, the TPOS rules will override what the estate agent's contract says.

Here's an extract from the TPOS rules:

Fee Entitlement and Client Liability

5t At the time of receiving instructions from a seller you must:

• point out and explain clearly in your written Terms of Business that 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 (see definition of effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months of the date your instruction ended and where a subsequent exchange of contracts takes place.

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

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

I strongly suspect that somebody at the estate agents has just made a mess of paraphrasing the above.

So TPOS confirms that if I sell my property without a new agent, so assuming privately, during 2 years after termination of contract, first EA can still claim their commission? 

No. Maybe it's easier using an example...

• The EA introduces a potential buyer named Sam Smith (e.g. the EA arranges a viewing for Sam Smith)

• Sam Smith doesn't make an offer

• Then you terminate the EA's contract on 1st March 2025

• If Sam Smith changes their mind and buys your house through another EA within 6 months (i.e. before 1st September 2025) - you have to pay the first EA a fee

• If Sam Smith changes their mind and buys your house without another EA being involved within 2 years (i.e. before 1st March 2027) - you have to pay the first EA a fee

But that only applies to Sam Smith, or other people introduced before 1st March 2025 by the first EA (or another EA).

It doesn't apply to anyone introduced after 1st March 2025 (or to any buyer you found privately).


For example, if you move to a new estate agent on 2nd March 2025, and they introduce somebody named Alex Green on 2nd March 2025 and Alex Green goes on to buy your house - you don't have to pay the first EA a fee.


All the above is completely standard, and you will find those terms in the vast majority of estate agents' contracts.

 

Thanks for explanation. May be EA got the wording wrong as it looks like they try to implement Sole selling right for a period of 2 years after termination disregarding if a buyer was first introduced by them or not.

Quick question- what is so good about this agent that you want to use them? Is it just that they are cheap?

Is it a new firm, or have they been around for years, with a solid track record? 

There’s clearly a mistake in the wording of their contract. If they thank you for pointing it out, and immediately agree to alter it, that’s a positive thing. If they refuse, I would not use them. 

They have been trading for about 10 years. Dont know if this contract has always been in use for them all these years. They have very limited reviews despite them trading for so long. May be because there is just one person in the company who owns this independent EA. There is no proper high street office as such, the agent has built a small cabin near the house which is used for office like purposes. However, you can't just shown up there if you need, the visits have to be pre-arranged. So not particularly happy with this conditions.
I have to agree with you - if they admit they made a mess with their t&c and can alter, its ok, but if not- then it's a problem...

GDB2222

If yours is a standard sort of house, it will be listed on RM and more or less sell itself. The quality of the agent is very much secondary. 

Some agents employ progress chasers to keep things moving during the legal process, but you can’t really assess that. So, it’s quite hard to assess how good the agent is. 

I can’t see anything wrong with him working from home and having limited time in the office. As a one man band, he’s got to be out visiting clients a lot of the time. 

kiwi07

GDB2222 said:

If yours is a standard sort of house, it will be listed on RM and more or less sell itself. The quality of the agent is very much secondary. 

Some agents employ progress chasers to keep things moving during the legal process, but you can’t really assess that. So, it’s quite hard to assess how good the agent is. 

I can’t see anything wrong with him working from home and having limited time in the office. As a one man band, he’s got to be out visiting clients a lot of the time. 

I have to agree they all the same but some of theirs contracts t&c differ from one agent to another. So its better to ensure its not a trap. 

kiwi07

GDB2222 said:

kiwi07 said:

eddddy said:

kiwi07 said:

eddddy said:

kiwi07 said:

RAS said:

Walk away.

That is why this agent is so cheap 75% plus vat - because there is a catch! 

I'd be pretty certain it's just badly written contract wording by the estate agent. Phone them and ask, and then get it clarified by email.

Most estate agents are members of the Property Ombudsman Scheme (TPOS) which specifies what an estate agent's contract must say.

In fact, assuming the estate agent is a member of TPOS, and you complain to TPOS, the TPOS rules will override what the estate agent's contract says.

Here's an extract from the TPOS rules:

Fee Entitlement and Client Liability

5t At the time of receiving instructions from a seller you must:

• point out and explain clearly in your written Terms of Business that 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 (see definition of effective introduction (*) and supplementary TPO ‘Dual Fee’ guidance) within 6 months of the date your instruction ended and where a subsequent exchange of contracts takes place.

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

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

I strongly suspect that somebody at the estate agents has just made a mess of paraphrasing the above.

So TPOS confirms that if I sell my property without a new agent, so assuming privately, during 2 years after termination of contract, first EA can still claim their commission? 

No. Maybe it's easier using an example...

• The EA introduces a potential buyer named Sam Smith (e.g. the EA arranges a viewing for Sam Smith)

• Sam Smith doesn't make an offer

• Then you terminate the EA's contract on 1st March 2025

• If Sam Smith changes their mind and buys your house through another EA within 6 months (i.e. before 1st September 2025) - you have to pay the first EA a fee

• If Sam Smith changes their mind and buys your house without another EA being involved within 2 years (i.e. before 1st March 2027) - you have to pay the first EA a fee

But that only applies to Sam Smith, or other people introduced before 1st March 2025 by the first EA (or another EA).

It doesn't apply to anyone introduced after 1st March 2025 (or to any buyer you found privately).


For example, if you move to a new estate agent on 2nd March 2025, and they introduce somebody named Alex Green on 2nd March 2025 and Alex Green goes on to buy your house - you don't have to pay the first EA a fee.


All the above is completely standard, and you will find those terms in the vast majority of estate agents' contracts.

 

Thanks for explanation. May be EA got the wording wrong as it looks like they try to implement Sole selling right for a period of 2 years after termination disregarding if a buyer was first introduced by them or not.

Quick question- what is so good about this agent that you want to use them? Is it just that they are cheap?

Is it a new firm, or have they been around for years, with a solid track record? 

There’s clearly a mistake in the wording of their contract. If they thank you for pointing it out, and immediately agree to alter it, that’s a positive thing. If they refuse, I would not use them. 

EA responded by saying " this Is relevant when we work on a sole agency basis (standard for all agents) & should you disinstruct us & then proceed to sell the property within 2yrs of disinstruction, to one of our interested parties/someone we introduced to the property, via another agent, then our fee will become liable. "

No offer to officially amend the contract...