Estate agents fees from the buyer's perspective

Alianco

Hi, we are looking to buy a house that we saw through Foxtons, but was subsequently taken off the market before we were ready to put in an offer. My wife put a note through their door and they have accepted our offer subject to a survey.
We went for a second viewing yesterday and the owner mentioned that he was pleased that he would avoid agents fees by selling privately. From everything I've read, and depending on his contract with them, he will have to pay Foxtons since they introduced us to him. We didn't say anything since it's none of our business.
From everything I've read, the agent's contract is with the seller and we, as buyers, would not be held liable should the seller try to get out of the fees. My wife is worried that a company as big as Foxtons, and with their reputation, might at the least hassle us in their attempts to get their money and even try to intimidate us.
Has anyone heard of a situation like this where the agent has persued the buyer for compensation when they can't find the seller?

jim1999

In general you can't pursue someone for money if you have no contract (written or implied).

In this case, the sellers had a contract with Foxtons, so Foxtons might go back to them with that contract.

But it's difficult to see how they could come along to you and say that because someone else had a contract with them, you are somehow now embroiled in that contract.  Anyone can claim anything of course, until it reaches a court, but I'd be very surprised if they'd attempt to go down that route.

I'm assuming of course that you didn't agree anything with Foxtons.

Section62

Alianco said:

Hi, we are looking to buy a house that we saw through Foxtons, but was subsequently taken off the market before we were ready to put in an offer. My wife put a note through their door and they have accepted our offer subject to a survey.
We went for a second viewing yesterday and the owner mentioned that he was pleased that he would avoid agents fees by selling privately. From everything I've read, and depending on his contract with them, he will have to pay Foxtons since they introduced us to him. We didn't say anything since it's none of our business.
From everything I've read, the agent's contract is with the seller and we, as buyers, would not be held liable should the seller try to get out of the fees. My wife is worried that a company as big as Foxtons, and with their reputation, might at the least hassle us in their attempts to get their money and even try to intimidate us.
Has anyone heard of a situation like this where the agent has persued the buyer for compensation when they can't find the seller?

The risk isn't so much from the EA hassling you, as the buyer deciding not to sell to you at the agreed price when the EA comes after them for the fees owed.

They might decide to find a different buyer who wasn't introduced by the EA.  Or not. There's no sure way of predicting what a vendor might do in different circumstances, but you would need to have a conversation with them to get a better idea.

Brie

Did Foxton's actually introduce you though?  I mean, you might have seen an ad for the property with F's logo but if you didn't go to them and ask for a viewing then there's no introduction.  

As for the seller - depending on the contract they have with Foxtons they might find there's a few to pay even if there was no communication of any sort between you and Foxtons.  Something like "a fee is payable if the property is sold in any way within 6 months of the date the contract is signed".

singhini

How will the estate agent find out you bought the house?
The estate agent may well discover the house eventually sold and how much it sold for, but who it sold to is not public knowledge (i thought?). 
The estate agent could knock on the door and when you open it, put 2-and-2 together but you just deny you bought it by saying you rent it and its nothing to do with them and to buzz off.

user1977

singhini said:

How will the estate agent find out you bought the house?
The estate agent may well discover the house eventually sold and how much it sold for, but who it sold to is not public knowledge (i thought?). 

You thunk wrong, the Land Registry is publicly-accessible (that’s partly the point of having a register!).

singhini

Ah OK, so Land Registry will have OP's name against the purchase (hence no need for estate agent to knock on the door).

ExEstateAgent

Depending on the terms of the vendors contract with Foxtons, when they find out that a sale has taken place they will probably go after the vendors for their fee. 

That might be before or after the sale has concluded. If it's before, the vendors might withdraw or ask you to pay more. If it's after then they'll just have to deal with it. 

You now know that they think they don't have any fees to pay, it's entirely your choice if you decide to mention anything about the agents to them - but it's really down to them to understand any obligations they may have. 

Alianco

Thanks for the replies. We were taken to see the house by a Foxton agent so the seller is sure to be responsible for their fees. That Foxtons might see that it has been sold before completion and that the seller might want more money to cover the fees I hadn't thought of, but we'll go ahead with what we do know and see what happens,.

grandweb

Alianco said:

Thanks for the replies. We were taken to see the house by a Foxton agent so the seller is sure to be responsible for their fees. That Foxtons might see that it has been sold before completion and that the seller might want more money to cover the fees I hadn't thought of, but we'll go ahead with what we do know and see what happens,.

They can't come after you as the buyer for fees, as others have said, you have no contract with them. They are unlikely to find out the buyer's (your) name until after the the property is sold, unless the seller decides to tell them. After it's sold, they could check the land registry to get your name and find out that they showed you round the property and pursue the seller for fees - but again, they cannot come after you. 

mta999

agree with @grandweb but would change 'could' to 'almost certainly will' - but Foxtons will only find out down the line when the property is sold and the LR updated.