Estate Agent Demanding Fees After Sale Through Another Agent

Sheppo88

Estate Agent Demanding Fees After Sale Through Another Agent – Need Advice

Hi everyone,

I’m in a bit of a tricky situation and could really use some advice about an estate agent demanding fees for a property sale that completed nearly a year ago.

Here’s the timeline:

• March 2023: Initially listed the house with Agent 1 but withdrew it after failing to find a property we liked.
• July 2023: Relisted with Agent 1, found a buyer in August, but our onward purchase fell through, so we withdrew again. The buyer also lost their sale.
• November 2023: Listed the property with Agent 2. The original buyers (introduced by Agent 1) viewed the property again through Agent 2 and made a revised offer, which we accepted.
• March 2024: Sale completed through Agent 2, and their fees were paid.

Fast forward to January 2025, and Agent 1 has contacted me, claiming they checked the Land Registry and noticed the buyers were originally introduced by them. They’re now demanding over £5,000 + VAT in fees.

Key points of concern:

1. Fee Timeframe: My understanding is that Agent 1’s entitlement would only apply if the sale completed within six months of the agreement ending. We withdrew the property from Agent 1 in mid-August 2023, and the sale was finalized in March 2024—seven months later.
2. Contract Issues: Unfortunately, I no longer have a copy of the contract as it was accessed electronically via an app I no longer use. I’ve seen similar terms online that suggest the agent would only be entitled to fees if the sale completed within six months of the agreement ending.
3. Professional Misconduct: To complicate matters, the director of Agent 1 has been struck off for money laundering and misuse of COVID support loans, yet they’re still operating the business in the background. I’m unsure if this affects their ability to enforce a claim.

The house sold for £500,000, and Agent 1’s fee is 1% + VAT, which amounts to over £5,000. However, given the timeline and the fact the sale completed seven months after their involvement ended, I believe their claim is invalid.

My questions are:

• Can Agent 1 legally claim fees when the sale was completed through a different agent after their agreement ended?
• Does their professional misconduct have any bearing on the enforceability of their claim?
• Without access to the original contract, how should I respond to their demands?

Has anyone dealt with something like this before? Any advice or insights would be greatly appreciated!

Thanks in advance for your help!

Hoenir

Ask Agent 1 to provide a copy of the contract you signed ? 

• July 2023:  Relisted with Agent 1, found a buyer in August, but our onward purchase fell through, so we withdrew again. The buyer also lost their sale.
• November 2023: Listed the property with Agent 2. The original buyers (introduced by Agent 1) viewed the property again through Agent 2 and made a revised offer, which we accepted.

Not usual for there to be a clause that covers introducing someone to you who buys your house within six months of your contract ending.  Date of completon has no bearing.  There's a strong argument that Agent 1 is entitled to something for their time and effort. 

The conduct of any person connected to the business is clutching at straws. Has no relevance. 

Sheppo88

Hoenir said:

Ask Agent 1 to provide a copy of the contract you signed ? 

• July 2023:  Relisted with Agent 1, found a buyer in August, but our onward purchase fell through, so we withdrew again. The buyer also lost their sale.
• November 2023: Listed the property with Agent 2. The original buyers (introduced by Agent 1) viewed the property again through Agent 2 and made a revised offer, which we accepted.

Not usual for there to be a clause that covers introducing someone to you who buys your house within six months of your contract ending.  Date of completon has no bearing.  There's a strong argument that Agent 1 is entitled to something for their time and effort. 

The conduct of any person connected to the business is clutching at straws. Has no relevance. 

Their terms and conditions or the only form of contract I can find, says the following: 

FEE ENTITLEMENT
The commission fee will be earned by us if we introduce, directly or indirectly a person who contracts to purchase the property during the period of contract. We have a specific entitlement to a fee if: The property is sold to a family member; One of the owners buys another owners share (e.g. as part of a separation agreement); The property is sold to a Property Developer; The property is part exchanged; The property is sold at auction or is repossessed; if the seller withdraws for any reason after contracts are exchanged.

We will have a commission fee entitlement if you terminate our agreement and then sell your property to a buyer introduced by us within six months of the date our agreement ends.

I googled the definition of selling a house in the UK, and it states everywhere that selling is when the contracts are exchanged and the house sale is completed. Up to that point, it's not classed as sold, despite the terminology Sold STC or Under Offer being used. 

Gentoo365

When did the contract end. If you relisted in November then that contract maybe 3 months. So the 6 months at the end means 9 months. 

Sheppo88

But I relisted with a second agent, not the original. I came off the market in August with agent one (the one demanding the fee). In November, the second agent agreed a sale for me at a lower price than I was originally selling and then we exchanged and completed 7 months on from when I came off the market with agent 1. 

Myci85

You may have 'come off the market' with agent 1 in August, but did their contract stipulate a minimum notice period or contract length etc which could have meant you were technically still in contract beyond August?

Bookworm105

when did the contract with agent 1 actually end?
"withdrew from the mark" does not necessarily mean the contract ended, merely that you had stopped advertising.
Nov 23 to March 24 is not 6 months...

Markmywords

Has the agent 1 got a copy of the contract you signed with them to see what it actually says?

p00hsticks

Was agent 2 given an list of names of those who originally viewed via Agent 1 ? (i think this is often the procedure to try to avoid situations such as yours) 

theartfullodger

As agent 1 appears to have introduced you to buyer they seem to be entitled to their compo.  Or did I misunderstand?

Best regards

Olinda99

you mention july and november 2023 but when did your contract with agent 1 end and when did you exchange and was there 6 months between those two dates?