Estate Agents clauses

DullGreyGuy

20122013 said:

DullGreyGuy said:

..I always find it hard to read contracts piecemeal and there are presumably more than just two clauses to the contract. The later part isnt well written and its not 100% clear if its just referring to an introduced purchaser or not... in context I would say it is but then if it was me Id have the wording changed to make it clearer

Is is still legally binding if the agent and I have a written agreement in an email (as they cannot amend the terms in their agreement)?

They can amend the terms if they want the business enough. Have been told this many times and always managed to change the contract.

Firstly check the contract for any clauses about the contract superseding any prior agreement. If there is it'd be a non-starter for me.

Secondly are they saying it is intended to be only introduced buyers and accept its just not brilliantly worded or are they saying its normally any buyer but just for you they'll agree its introduced buyers? If its the intended interpretation its less likely that they;d try and change the interpretation later

Thirdly, how likely are you going to get a private buyer? How much do you prefer this agent over your other options if they won't change it? Do you trust them?

20122013

eddddy said:

20122013 said:

@ eddddy

Yes, they are part of the Property Ombudsman Scheme.

May I check is this a Sole Selling Right contract (I have posted above):

'In accordance with The Property Ombudsman’s Code of Practice (TPO), following termination of our agreement, if a purchaser introduced by us or with whom we have negotiated with goes on to buy your property through another agency (and even if you have paid that other agent a selling fee), we will still be entitled to our fee if a Memorandum of Sale (or equivalent) is issued by the other agent within 6 (six) months of date of  termination of our instruction (at the end of the 28 (twenty eight) days notice) and where exchange of contracts takes place. In all other cases, we Will still be entitled to our fee for an exchange of contracts occurring up to 2  (two) calendar years from termination (at the end of the 28 twenty eight) days‘ notice) of
our agreement.'  

What you've posted above is part of a 'Sole Agency Agreement' - it's not part of a 'Sole Selling Rights' agreement.

It's part of a 'Sole Agency Agreement' because it says:

• "...if a purchaser introduced by us or with whom we have negotiated with goes on to buy your property..."

If it were part of a "Sole Selling Selling Rights Agreement" it would say something like:

• ...if a purchaser introduced in the period during which we have sole selling rights goes on to buy your property, even if the purchaser was not found by us but by another agent or by any other person, including yourself....

With this sole agency agreement I am still liable for the agency fee for a further for 6 - 24 months after our agreement has ended?  

I am aware that an ex agency can claim their fee if they have introduced a buyer and the current agent sold it to this buyer. If I have supplied my current agency with the names who have already  been introduced to the property, should the current agency refer the buyer back to my ex agency? 

Regarding ' In all other cases, we Will still be entitled to our fee for an exchange of contracts occurring up to 2  (two) calendar years from termination (at the end of the 28 twenty eight) days‘ notice) of
our agreement.'  

is it better to have this term included so I know there is an end date of me being liable for the fee? as not all agreement have this term ?

20122013

DullGreyGuy said:

20122013 said:

DullGreyGuy said:

..I always find it hard to read contracts piecemeal and there are presumably more than just two clauses to the contract. The later part isnt well written and its not 100% clear if its just referring to an introduced purchaser or not... in context I would say it is but then if it was me Id have the wording changed to make it clearer

Is is still legally binding if the agent and I have a written agreement in an email (as they cannot amend the terms in their agreement)?

They can amend the terms if they want the business enough. Have been told this many times and always managed to change the contract.

Firstly check the contract for any clauses about the contract superseding any prior agreement. If there is it'd be a non-starter for me.

Secondly are they saying it is intended to be only introduced buyers and accept its just not brilliantly worded or are they saying its normally any buyer but just for you they'll agree its introduced buyers? If its the intended interpretation its less likely that they;d try and change the interpretation later

Thirdly, how likely are you going to get a private buyer? How much do you prefer this agent over your other options if they won't change it? Do you trust them?

1. I have asked about this to this agent and had a negative response. 

2.  Agree

3. Unsure 

4. Thanks for this ! especially point 3, I am not comfortable with this agent (from previous interaction and now) I am reconsidering them because the other agent has a 12 week contract and this one is 6 weeks. It seems after 2 weeks  the viewers will wind down so will be their motivation as their are higher fees from other sales. 

I think I will go with the 12 week term (ah - Just remebered it was not just the tie in period but also they are sole selling right contract, I doubt I can ask them to remove sole selling rights though) . I am a bit nervous as summer is coming and then it will go quiet / holiday etc

Smalltownhypocrite

20122013 said:

I am looking to instruct this EA as a sole agency and whether these are standard terms?

1.

'Contract
If any part of this contract is held unenforceable or invalid the remaining parts of this contract shall be enforceable and valid. This agreement shall be subject to the laws of England & Wales.'

I think this is acceptable or maybe I am missing something?

2.

'A purchaser we have introduced is anyone who has been informed of your property through our activity either directly or through another person (for example - wife, husband, family member, partner or business partner) including anyone acting on behalf of the purchaser. This may include (for example) advertisements, sales details, for sale boards, electronic advertising including internet media, leaflets and any verbal or written information given about the property. It is possible for us to be the introducer whilst there is another agent instructed or you use a website/portal other than our own.'

I am unsure of the bold text. as usually it says the buyer / viewers but not seen the bold texts mentioned. 

I mean it makes sense. Say Sally finds your house through their rightmove add, Sally sends an inquiry on RM but also randomly drops by on her way from work and knocks on the door saying she saw the ad and can she view because she has been desperate to buy on your street forever. You show her round and she offers £30k over asking as its her dream house location. You then think 'wait I can screw the EA out of his fees' and tell the EA you are selling to a private buyer called 'Harry', but Harry is Sally's husband. Clear scam.

Its entirely possible for further away relations to find something separately but its also just as likely they spoke about it. Both us and IL where looking for a 4 bed at the same time, we often saw a house on our own then messaged each other about it to see if the other had booked a viewing already, if we like it do they like it (awkwardness may ensue if we both did), if we don't like it to recommend they look at the ad to see if its any use to them.

eddddy

20122013 said:

With this sole agency agreement I am still liable for the agency fee for a further for 6 - 24 months after our agreement has ended?  

Yes - in simple terms the rule is... if an agent introduces somebody, they get a fee if that person goes on to buy the property within 6 (or 24) months.

20122013 said:

If I have supplied my current agency with the names who have already  been introduced to the property, should the current agency refer the buyer back to my ex agency? 

Yes - the Property Ombudsman requires the current agent to refer the buyer back to the previous agent.

In fact, the Property Ombudsman says the current agent must "establish if an interested party has previously viewed through another agent;"

So perhaps that means that the current agent should ask every interested party whether they have previously viewed - even if their name isn't on the list.

20122013 said:

Regarding ' In all other cases, we Will still be entitled to our fee for an exchange of contracts occurring up to 2  (two) calendar years from termination (at the end of the 28 twenty eight) days‘ notice) of
our agreement.'  

is it better to have this term included so I know there is an end date of me being liable for the fee? as not all agreement have this term ?

That's the term mandated by the Property Ombudsman.

eddddy

20122013 said:

Is is still legally binding if the agent and I have a written agreement in an email (as they cannot amend the terms in their agreement)?

DullGreyGuy said:

They can amend the terms if they want the business enough. Have been told this many times and always managed to change the contract.

I never ask an estate agent to do the rewriting of terms in their contract - to be blunt, the person you're talking to probably doesn't have the skills to do that. 

I always write the contract alterations I require in an email, and ask them to reply with their agreement... typically something like this:

I am happy to proceed with instructing you to market my property subject to the following conditions...

- The minimum contract period (as mentioned in para nn of your contract) is 8 weeks

- As you are members of the Property Ombudsman Scheme, an 'introduction' is as defined in the Property Ombudsman's code of practice (an 'effective introduction'), as opposed to the definition in para  nn in your contract

- If there are any other conflicts between your contract and the Property Ombudsman's Code of Practice, the Code of Practice takes precedence

- (and anything else you want to change)

Please confirm that you agree, so that we can proceed.



If you want, when you sign the contract, you can add a written note above your signature saying something like "Also see email dated xx/xx/2025"


(And I would only send an email like this if I really was ready to proceed with them on the terms stated. Saying something like "I want you to agree to these terms, then I'll think about whether I'll hire you" is much less likely to work.)

20122013

eddddy said:

'I never ask an estate agent to do the rewriting of terms in their contract - to be blunt, the person you're talking to probably doesn't have the skills to do that. 

I always write the contract alterations I require in an email, and ask them to reply with their agreement... '

Appreciate this, this EA I am in discussion with says they can only amend the terms in person (?)  and when I had suggested to confirm the agreement of terms via email they said ok. But later they have referred back to ' can do in person only' all a bit strange. And I am not comfortable with the agent's attitude, nonetheless, I will use your suggestion, as the other agent's agreement has the wording 'sole selling rights' on it but tells me they are a sole agent..and I will check with them again. 

20122013

Thank you for all the replies very helpful, I have used it on another agent's agreement. 

20122013

Update, My terms and signed EA's agreement have been accepted by the manager and strangely he then send me a different version of another  agreement with more clauses. I told them that my signed agreement had been accepted and I was told ignore their request. 

I am nervous now, as the manager arranged a photographer for Friday and The manager listing for Saturday. 

I asked how do I hand the key in and had no response and it turned out it was the senior agent from the EA who is the photographer. I asked whether I will get to review the listing and he seemed surprised.

Question : 

Do I need a copy of the agreement which is signed by me and the EA?

When do I start calling the agency for update to make sure things are on track, as I now remember why I did not use them previously as their administration side has room for improvement but they have good google reviews.