Private Sale After Listing

NWDan

Timeline:

- Friends with Person A who have visited house previously
- Person A learns we are selling but isn't in a proceedable position so house is listed with an EA
- Sign 'Sole Agency' contract and the only remarks I can find relating to this ''if a buyer is introduced either directly or indirectly by ourselves or any other agent during the agency period'' ....our fee is due
- EA doesn't find a buyer
- Person A messages to say they are now proceedable and are now interested
- House still listed with EA but Person A haven't had any contact with them

My interpretation is the EA hasn't introduced the buyers to me, they didn't learn about it because it was on Rightmove or see the sign outside, it was only through word of mouth between friends that they learnt we were selling

What's the realistic outcome here?  How likely is the EA to pursue this? Is the onus on the EA to prove they introduced the buyers or would I have to prove somehow they only knew about it through word of mouth?

FWIW I have a good relationship with the agents and appreciate the value they might add in overseeing the deal to completion and am open to renumeration at some level however I suspect they would still demand the full fee if we raised it despite not introducing the buyers

Thanks

DE_612183

How long is the contract for?

Just phone them up and say you no longer wish to sell through them as you've found a buyer yourselves.

Doubt they will chase it.

Of course it does depend on the value of the property and the fee they are looking for - 5% of £1m is a lot more than 1% of £100k

Grumpy_chap

NWDan said:

Timeline:

- Friends with Person A who have visited house previously
- Person A learns we are selling but isn't in a proceedable position so house is listed with an EA
- Sign 'Sole Agency' contract and the only remarks I can find relating to this ''if a buyer is introduced either directly or indirectly by ourselves or any other agent during the agency period'' ....our fee is due
- EA doesn't find a buyer
- Person A messages to say they are now proceedable and are now interested
- House still listed with EA but Person A haven't had any contact with them

My interpretation is the EA hasn't introduced the buyers to me, they didn't learn about it because it was on Rightmove or see the sign outside, it was only through word of mouth between friends that they learnt we were selling

What's the realistic outcome here?  How likely is the EA to pursue this? Is the onus on the EA to prove they introduced the buyers or would I have to prove somehow they only knew about it through word of mouth?

FWIW I have a good relationship with the agents and appreciate the value they might add in overseeing the deal to completion and am open to renumeration at some level however I suspect they would still demand the full fee if we raised it despite not introducing the buyers

Thanks

Tell the EA you are removing the property from the market and served the necessary notice.  Ask the EA to provide a list of all parties they introduced to the property - you don't know if or when your circumstances might change again meaning you wish to return to market.

If the friend is not on the "introduced" list, free to sell to them.

The EA will not add any value in overseeing the process.

eddddy

Based on what you say, no fee should be due to the estate agent, because they didn't introduce the buyer.

NWDan said:

...they didn't learn about it because it was on Rightmove or see the sign outside, it was only through word of mouth between friends that they learnt we were selling

That shouldn't make any difference anyway. Seeing a property on Rightmove or seeing a sign isn't an
 introduction.

And in any case, in your post you said you introduced the buyer yourself.

NWDan said:

What's the realistic outcome here?  How likely is the EA to pursue this? Is the onus on the EA to prove they introduced the buyers or would I have to prove somehow they only knew about it through word of mouth?

Some estate agents would be decent and honest - and walk away with no problem.

Some estate agents might be roguish, and insist you owe them a fee and/or bully you to try to make you pay a fee - even though the contract says otherwise.


Ultimately, you can ignore the estate agent unless/until they send you a bill. Then you might have 2 options...

• 1) Complain to the property ombudsman, assuming that the estate agent is a member of The Property Ombudsman Scheme (most are). The ombudsman would investigate - and hopefully decide that you don't have to pay.

• 2) Do nothing and wait to see if the estate agent takes you to court, If they do, explain the facts to the court - and hopefully you will win the case

It's generally easier and cheaper to complain to the ombudsman, than fight a court case.

So if you do get a bill, it's best to get a complaint into the Ombudsman before the estate agent starts any court action.


But TBH, I suspect the estate agent won't push it that far.

sheramber

Is there a minimum term in your contract with EA when you have to pay if you cancel early? 

mta999

For people reading this thread in the future this is the difference between when you sign a contract with the estate agent - giving them 'sole agency' or 'sole selling rights'

eddddy

sheramber said:

Is there a minimum term in your contract with EA when you have to pay if you cancel early? 

This is going to make me sound very pedantic - but it's something that confuses people when reading estate agents' contracts.

I don't think you mean 'cancel' the contract, I think you mean 'terminate' the contract.

You can sometimes 'cancel' a contract during the 14 day cooling off period. (Then it's as though the contract never existed.)

Beyond that, you can 'terminate' the contract. For example, if you 'terminate' the contract after 12 weeks, the contract will have been in force for those 12 weeks.


So the OP probably needs to read the clauses in the contract that relate to 'termination', not the clauses relating to 'cancelation'.



FWIW, if the 'minimum contract period' hasn't finished, typically you cannot terminate the contract.  So instead, the seller could say that the contract is continuing (just in case the buyer drops out), but there should be no more viewings for the moment - and viewings should only resume if/when the buyer drops out.

NWDan

Thanks for the responses, our fixed term contract is up but need to give a month's notice to terminate it.  I had seen a number of threads had covered this before but wanted to check as the wording often seems to differ even it it claims to be 'sole agency'.

TheJP

I could see the EA arguing for their fee in 2 ways, the indirectly introduced part of the contract. The EA marketed the property on rightmove and a sign on the property stating it is for sale. The approach by person A came after this was done so therefore they could argue that they saw the property is for sale and contacted you outside of their connection.

They could also argue that as you had a contract at the time you should have signposted person A to engage via the EA. Which i think i have heard on this forum before the sellers ended up having to pay the EA.

They may also just terminate the contract and let it go, but i think that will be highly unlikely as they will track the property for a while and then maybe contact you with a bill.

pinkshoes

NWDan said:

Thanks for the responses, our fixed term contract is up but need to give a month's notice to terminate it.  I had seen a number of threads had covered this before but wanted to check as the wording often seems to differ even it it claims to be 'sole agency'.

In which case, give your notice in writing, and as above, ask for a list of all clients they introduced to the property.

NWDan

TheJP said:

I could see the EA arguing for their fee in 2 ways, the indirectly introduced part of the contract. The EA marketed the property on rightmove and a sign on the property stating it is for sale. The approach by person A came after this was done so therefore they could argue that they saw the property is for sale and contacted you outside of their connection.

They could also argue that as you had a contract at the time you should have signposted person A to engage via the EA. Which i think i have heard on this forum before the sellers ended up having to pay the EA.

They may also just terminate the contract and let it go, but i think that will be highly unlikely as they will track the property for a while and then maybe contact you with a bill.

I would anticipate the EA to argue that, it was more a case of how that would hold up legally and whether they'd get anywhere if they decided to chase it.  'Indirectly' does introduce a bit of a grey area.