Open ended sole agency contract?

Girthhitch

The wording is:

We confirm that the agreed commission will be based on the negotiated sale price..

during the period of the Sole Selling Rights Agreement or within 6 months of the agreement having ended (to anyone who was introduced to the property during the time of our sole selling rights agreement)

But then later it says "We confirm the appointment of X-Limited on a Sole Selling Rights Agreement until further notice"

"Either party may terminate this agreement by giving 14 days notice in writing to the other."

So this means that if I cancel the contract, for 6 months and 2 weeks, if it is then sold by another EA to someone they 'introduced', the original one gets the commission?

It just seems that the Sole Selling Rights Agreement 'until further notice' part means its endless and that the 6 months part is ignored? Or does terminating the agreement satisfy 'until further notice'?

Also read someone else say that it applies even if sold to someone they didn't introduce due to the endless part! Please help? Are we being paranoid?

Cheers,

Girth.

Bookworm225

you can always ask for the wording to be changed 

"introduction" has yet to have a set in stone meaning, but there has been much case law over it. You might find the final 3 paras of this helpful:
Why court decided that sellers did not have to pay commission to first agent - Property Industry Eye

and some precedent arises from the much earlier (infamous) "Foxton case"

Foxtons Ltd v Pelkey Bicknell and Another: CA 23 Apr 2008 - swarb.co.uk

saajan_12

Girthhitch said:

The wording is:

We confirm that the agreed commission will be based on the negotiated sale price..

during the period of the Sole Selling Rights Agreement or within 6 months of the agreement having ended (to anyone who was introduced to the property during the time of our sole selling rights agreement)

..

So this means that if I cancel the contract, for 6 months and 2 weeks, if it is then sold by another EA to someone they 'introduced', the original one gets the commission?

The person has to have been introduced to the property [by anyone] during their contract. So say if someone has a viewing during their contract time (ie is introduced), then you give 2 weeks notice to terminate the contract, and then that someone goes on to buy the property, then you'd owe the commission. Not if the buyer's first viewing and introduction was after the notice. 

That sounds fair enough - just don't allow any other EAs or anyone else hold viewings until 2 weeks after you give notice to this agent. 

Girthhitch said:

But then later it says "We confirm the appointment of X-Limited on a Sole Selling Rights Agreement until further notice"

"Either party may terminate this agreement by giving 14 days notice in writing to the other."

..

It just seems that the Sole Selling Rights Agreement 'until further notice' part means its endless and that the 6 months part is ignored? Or does terminating the agreement satisfy 'until further notice'?

Well there's just no minimum term, you can give notice any time and 2 weeks later, the agreement terminates. That's not endless, as you can end it. 

DullGreyGuy

Girthhitch said:

The wording is:

We confirm that the agreed commission will be based on the negotiated sale price..

during the period of the Sole Selling Rights Agreement or within 6 months of the agreement having ended (to anyone who was introduced to the property during the time of our sole selling rights agreement)

But then later it says "We confirm the appointment of X-Limited on a Sole Selling Rights Agreement until further notice"

"Either party may terminate this agreement by giving 14 days notice in writing to the other."

So this means that if I cancel the contract, for 6 months and 2 weeks, if it is then sold by another EA to someone they 'introduced', the original one gets the commission?

It just seems that the Sole Selling Rights Agreement 'until further notice' part means its endless and that the 6 months part is ignored? Or does terminating the agreement satisfy 'until further notice'?

Also read someone else say that it applies even if sold to someone they didn't introduce due to the endless part! Please help? Are we being paranoid?

No, the 6 months clock only starts ticking after the agreement has ended so it's still very much relevant. 

I would certainly want a term in the contract defining what "introduced to the property" means! In principle they could mailshot everyone on their books and then claim that they've introduced the property to the thousands of registered buyers. I would certainly want the definition tightened so just sending someone an email or letter doesnt count.