Final week of estate agent contract

Feebs77

eddddy said:

Feebs77 said:

I'm in the final week of an estate agent contract...and will be booking a new agent.

Just to double check - have you given written notice of termination to the current estate agent, as described in your contract (typically a 2 or 4 weeks notice period)?

Typically, estate agents' contracts have a minimum contract period - maybe 8, 10, 12 or 16 weeks - but they continue beyond that, until you give written notice.

Yes, I gave my 2 week notice yesterday. So any 2nd agent would have to start in 2 weeks.

Feebs77

eddddy said:

Feebs77 said:

So if I ask them for a list of people they believe they've introduced, wouldn't I be suggesting to them that my understanding of what constitutes the term 'introduce' is not just limited to viewings?
I don't want to shoot myself in the foot!

So you say something like this in an email:

"When terminating the contract, I would normally request a list of prospective buyers that you have introduced to the property to pass to the next estate agent, but since there have been no viewings, it seems that you have not introduced anybody. Please confirm this is the case."

This is a really good email suggestion Eddddy. I have already terminated the contract, but as I have 2 more weeks with them (notice period), maybe I should request the list of prospective buyers they introduced, on last day of notice period?

saajan_12

Feebs77 said:

The terms of the contract is:
"the Fee will not be payable if a buyer introduced or re-introduced by us goes on to exchange unconditional contracts for the purchase of the Property through another agent in circumstances where that buyer was introduced to the Property again by the other agent more than six months after the end of the period of our Sole Selling Rights."

and 

“introduced” “re-introduced” refers to the bringing of the Property to the attention of the person or persons so introduced or reintroduced."

Any advice much appreciated!

Is this all that's in the contract? Saying a fee is NOT due in xyz circumstances doesn't mean that a fee IS due in all other circumstances. So I don't see how the above requires you to pay a fee beyond your contract termination. 

Feebs77

This is what's in the contract;

"Sole Selling Rights” means that you will be liable to pay remuneration to us, in addition to any other costs or charges agreed, if at any time unconditional contracts for the sale of the Property are exchanged:

1 (a) with a buyer introduced by us during the period of our Sole Selling Rights or with whom we had negotiations about the Property during that period; or (b) with a buyer introduced by another agent during that period ; or (c) with a buyer re-introduced by us during the period of our Sole Selling Rights following abortive negotiations with another agent prior to the date of this Agreement; and (d) a buyer introduced by any other party during the period of our sole selling rights including by yourself (a private buyer). Should exchange of contracts be effected at any point during our agency period then the fee will be owing."

For the avoidance of doubt, for the purposes of this Agreement: “buyer” refers to anyone¨ or any corporate structure, who, at any time in the future, exchanges unconditional contracts for the purchase of the Property; and “introduced” and “re-introduced” refer to the bringing of the Property to the attention of the person so introduced or reintroduced.

The effect of this clause is that, in certain circumstances, the Seller may be obliged to pay a fee to more than one agent. It is a requirement of this agreement that should an offer be agreed privately, or via another agent, the seller must disclose to us the identity of the purchaser prior to exchange of contracts.

In the event of a private sale where unconditional contracts for the sale of the Property are exchanged the Fee will be payable by the Seller.

Exception: the Fee will not be payable if a buyer introduced or re-introduced by us goes on to exchange unconditional contracts for the purchase of the Property through another agent in circumstances where that buyer was introduced to the Property again by the other agent more than six months after the end of the period of our Sole Selling Rights."

Feebs77

So if my 2nd Estate Agent needs to refer potential buyers back to my 1st Estate Agent,  does that also mean I end up paying only my 1st EA fees (in my original contract with them) and that my 2nd Estate Agent would get nothing?  

Or is there anything in it for the 2nd Estate Agent if this happens?

GrubbyGirl_2

I think you're worrying about nothing.  They have not arranged any viewings so have not introduced anyone to you.  Email them as Eddddy suggests but I would add..........in bold


"When terminating the contract, I would normally request a list of prospective buyers that you have introduced to the property to pass to the next estate agent, but since there have been no viewings, it seems that you have not introduced anybody. Please confirm this is the case within 5 working days of the end of the contract."

Feebs77

Thanks for all your feedback.

I think I'm just extremely suspicious about the shady way my 1st estate agent has dealt with me (zero updates and no feedback unless I ask for it - amongst other dodgey things I won't go into!)

I believe they're banking on the 2nd agent to put in more networking / marketing work and wait for any prospective buyers to be reverted back to them.

eddddy

Feebs77 said:

So if my 2nd Estate Agent needs to refer potential buyers back to my 1st Estate Agent,  does that also mean I end up paying only my 1st EA fees (in my original contract with them) and that my 2nd Estate Agent would get nothing?  

Yes - that's what you have to agree with the 2nd estate agent before signing the contract.

It's stated in The Property Ombudsman's (TPOS) code of practice, which is mandatory for TPOS members.

So if the 2nd estate agent is a TPOS member they should do that by default. But it's best to clarify anyway.

If the 2nd estate agent won't agree, find another estate agent who will agree.

Feebs77 said:

Or is there anything in it for the 2nd Estate Agent if this happens?

No - nothing in it for the 2nd estate agent.

But the 2nd estate agent gets the same benefit if you terminate their contract and move to a 3rd estate agent.

The 3rd estate agent has to refer people back to the 2nd estate agent, if the 2nd estate agent introduced them (within the last 6 months).

And, in theory, the 3rd estate agent might also have to refer people back to the 1st estate agent, if 6 months hasn't elapsed. (If the 1st agent introduced them.)

eddddy

Feebs77 said:

I think I'm just extremely suspicious about the shady way my 1st estate agent has dealt with me (zero updates and no feedback unless I ask for it - amongst other dodgey things I won't go into!)

I believe they're banking on the 2nd agent to put in more networking / marketing work and wait for any prospective buyers to be reverted back to them.

Why do you believe that?

TBH, your posts here sound like you are over thinking this. 

It might be worth think in some other directions. maybe perhaps...

• Your property has been on the market for x weeks, why have there been no viewings?

• Ask the 1st estate agent, the 2nd estate agent and other local estate agents what the current level of viewings is like in general

• i.e. Is the market 'pretty dead' and nobody is getting viewings, or is everyone else getting viewings - which suggests that there is a problem with your property (usually the price)

• Similarly, are other properties like yours going under offer? If so, why isn't yours?

• What was it you liked about the 1st estate agent that made you choose them? Did you make a misjudgement, do you feel they misled you? How will you avoid the same mistake with your second choice of estate agent?

• What is the 2nd estate agent going to do differently from the1st estate agent to get viewings and offers?

saajan_12

Feebs77 said:

This is what's in the contract;

"Sole Selling Rights” means that you will be liable to pay remuneration to us, in addition to any other costs or charges agreed, if at any time unconditional contracts for the sale of the Property are exchanged:

1 (a) with a buyer introduced by us during the period of our Sole Selling Rights or with whom we had negotiations about the Property during that period; or (b) with a buyer introduced by another agent during that period ; or (c) with a buyer re-introduced by us during the period of our Sole Selling Rights following abortive negotiations with another agent prior to the date of this Agreement; and (d) a buyer introduced by any other party during the period of our sole selling rights including by yourself (a private buyer). Should exchange of contracts be effected at any point during our agency period then the fee will be owing."

Pretty cheeky of them, they want fees on both ends - if they spoke to someone introduced by a prior agent AND if they are the prior agent which a future agent re-introduces. 

May not be a concern for OP if there was no prior agent, but still goes against the general avoidance of double fees expected by the TPOS.