Sole seller agreement query

Onehouseowner

Hi all, i advertised my house to sell via an EA in Jan this year, then took it off the market after a month as i had decided not to sell. When i ready to sell again I found a private buyer through a colleague. The Contract with the EA expired 2 months ago and now im in a position to exchange and complete with my buyer but i received a notification from the EA that i still owe them their commission. Their primary argument is that they have the sole seller and even if they have not introduced the buyer just having "agreed" to sell within the period of contact would entitle them to their commission. 

In their contract which i signed i dont see a clause that states that. 

1. Sole selling rights ( this is when we are the only agents selling your property)

1.1 Our sole selling right fee is 1.5% plus VAT of the sale price of your Property.

1.2 Our sole selling rights will commence from the date of this Agreement for an initial period of twenty"one weeks and is thereafter subject to twenty one days" written notice of termination, making a minimum marketing term of twenty four weeks

1.3 You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, in each of the following circumstances:

(a) if unconditional contracts for the sale of the Property are exchanged in the period during which we have the sole selling rights, even if the purchaser was not found by us but by another agent or by any other person including yourself

(b)if unconditional contracts for the sale of the Property are exchanged after the expiry of the period during which we have the sole selling rights but to a purchaser who was introduced to you during that period or with whom we had negotiations about the Property during that period,

1.4 If the circumstances of the preceding clauses 1.3(a) or 1,3|b) apply during the term of this Agreement you shall provide us with the details including timings of the sale and sale price of the Property) and commission will be charged at our sole selling rights fee rate of plus VAT of the sale

price of your Property. Should the property sell at the asking price, the total commission payable by you under the terms of this agreement.

The EA argument is the buyer was introduced inside of their sole selling rights agreement. Whether the buyer was introduced by the EA or by any other means, does not have any relevance. This being one of the key differences between sole selling rights and sole agency

This does not match with what the contract says or what i am reading from it at least. Please can someone help me understand if i have a case here ?

MyRealNameToo

So are they trying to claim under 1.3(a) or 1.3(b)?

What is the date of the agreement?

1.3(b) is poorly worded but typically would be people they introduced or negotiated with. Did the potential buyer have any dealing with the estate agent? 

DE_612183

when you say the contract expired 2 months ago - did you write to them to terminate?

looks like it's a rolling contract, so the initial period may have passed, but you still need to terminate.

Slinky

For anyone else reading this, Sole selling rights are not the same as Sole Agency. I think the OP will find they have to pay up. Never give anyone Sole selling rights. 

Sole selling rights are just that. If you sold to your cousin, they could still claim commission. Sole Agency only gives them a right to commission for people they actually introduce.

Onehouseowner

MyRealNameToo said:

So are they trying to claim under 1.3(a) or 1.3(b)?

What is the date of the agreement?

1.3(b) is poorly worded but typically would be people they introduced or negotiated with. Did the potential buyer have any dealing with the estate agent? 

No the EA did not have any dealings with the the buyer 

Onehouseowner

DE_612183 said:

when you say the contract expired 2 months ago - did you write to them to terminate?

looks like it's a rolling contract, so the initial period may have passed, but you still need to terminate.

The EA confirmed the contract expired in July 

Onehouseowner

Slinky said:

For anyone else reading this, Sole selling rights are not the same as Sole Agency. I think the OP will find they have to pay up. Never give anyone Sole selling rights. 

Sole selling rights are just that. If you sold to your cousin, they could still claim commission. Sole Agency only gives them a right to commission for people they actually introduce.

Ok within the contract period as stated the clause  1.3(a) , is that the case even after the contract has expired .?

Slinky

Onehouseowner said:

Slinky said:

For anyone else reading this, Sole selling rights are not the same as Sole Agency. I think the OP will find they have to pay up. Never give anyone Sole selling rights. 

Sole selling rights are just that. If you sold to your cousin, they could still claim commission. Sole Agency only gives them a right to commission for people they actually introduce.

Ok within the contract period as stated the clause  1.3(a) , is that the case even after the contract has expired .?

On Sole selling it will be within the contrac/notice period. 

eddddy

In simple terms - based on what you've said...

• You had a sole selling rights agreement with the estate agent from January until July (assuming you gave 21 days written notice to terminate the contract). The exact dates might be important.

So...

• If the buyer was introduced to the property between January and July - you owe the estate agent their fee

• If the buyer was introduced to the property after July - you don't owe the estate agent their fee

There might be an argument about the definition of "introduced" - maybe it's the first date that you spoke with the buyer about the property.

DE_612183

Onehouseowner said:

DE_612183 said:

when you say the contract expired 2 months ago - did you write to them to terminate?

looks like it's a rolling contract, so the initial period may have passed, but you still need to terminate.

The EA confirmed the contract expired in July 

yes, but in the contract they talk about "termination" of contract no expiry...

you need to make sure the two terms are the same as far as the EA's are concerned.