Estate Agent Sole Selling Rights

Blofield55

Hi,

I have been off the market for 1 year 1 month, this is when I withdraw and end my contract with my estate agent. At the time they sent a list of applicants who they introduced, stating any future purchase involving these parties would incur a fee. 

I now have a private buyer who was initially introduced by my previous agent. My contract did not have a time period noted in the sole selling rights section of the contract. 

Would I be required to pay them fees 1 year 1 month later? 

AskAsk

i think you will still be liable for the fee.

it puzzles me how they would find out as by the time the property reaches the land registry online database, you would think the agent would have forgotten all about it as surely they don't periodically look for withdrawn properties on the land registry do they? (musing emoticon)

Blofield55

I agree, prior to properly researching the matter never thought a agent would be entitled to a fee over a year later. I definitely won't be making contact to make them aware, but was looking for advice from anyone who'd been in a similar position. 

RHemmings

I believe that for agents who are a member of The Property Ombudsman Scheme, that a fee will not be due if the end of the agreement between the seller and the estate agent was more than six months ago. 

See, e.g., https://www.tpos.co.uk/news-media-and-press-releases/case-studies/item/dual-fee-dispute

The expectations and requirements of an agent’s service under the following aspects of the TPO Code of Practice applied:

1e – to provide a service consistent with fairness, integrity and best practice.

5r – at the point of accepting instructions, to point out and clearly explain in the written Terms of Business:

• That they may be entitled to a commission fee if the seller terminates the instruction and a memorandum of sale is issued by another agent to a buyer they have introduced within 6 months of the date the instruction ended and where a subsequent exchange of contracts takes place.
• And the seller may be liable to pay for more than one fee if that seller instructs another agent during or after after their agency period.

5s – at the time of termination of the instruction, to explain clearly in writing any continuing liability the client may have to pay a commission fee and any circumstances in which the client may have to pay more than one commission fee.

 

OP - not all agents are members of The Property Ombudsman Scheme, some are members of The Property Redress Scheme. It should say on the agent's website which scheme they belong to.

EDIT: PRS is six months too. But, the exact wording is important, and there are situations where an 'effective introduction' can survive longer than six months. https://www.propertyredress.co.uk/resources/dual-fee---guide-to-decision-making

eddddy

Blofield55 said:

I agree, prior to properly researching the matter never thought a agent would be entitled to a fee over a year later. 

It sounds like you're selling privately - not through an estate agent.

Therefore the Property Ombudsman's Code of Practice says the estate agent is entitled to a fee for up to 2 years after you end the contract with the estate agent, if you sell to somebody they introduced.

If you were selling through an estate agent, the time limit would be 6 months.



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

Blofield55 said:

I definitely won't be making contact to make them aware...

A number of estate agents check Land Registry records for properties that were on their books and sold later, to see if a new owner is somebody they introduced,

Some of the bigger estate agency chains have in-house teams that do that.

Some estate agents outsource that work to other companies who specialise in doing that. Typically those outsource companies also chase the sellers on the estate agent's behalf. They have their own 'debt collection' people.

Blofield55

All - thanks for the advice, looks like I will be liable due to only being 1 year 2 months. This is a private sale. 

AskAsk

Blofield55 said:

All - thanks for the advice, looks like I will be liable due to only being 1 year 2 months. This is a private sale. 

in all fairness, they do deserve to get their fee as they had introduced that buyer to you.  if you are lucky, they may never ask for it