Is this estate agency clause as dodgy as I think it is?

GDB2222

https://forums.moneysavingexpert.com/discussion/comment/81874941#Comment_81874941

This is the point, but it becomes messy when the buyer is exceptionally slow and the seller wants to cancel the deal and remarket the house. There’s certainly room for disagreement with the agent, particularly if the seller wants to remarket with a different agent.

Personally, I’d only agree to a contract that requires payment if contracts are exchanged.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81874837#Comment_81874837

How about if it is otherwise an agent you think would be OK, just say you can not accept that clause.

If they don’t take it out , you won’t go with them and will go with another agent .

It’s business, which is usually open to negotiation.

eddddy

Some estate agents have "ready, willing and able buyer" clauses, and others don't.

The agents who have the clause would say it's to protect them in a case like this:

• The estate agent introduces a buyer, and the seller accepts the buyer's offer
• The estate agent does all the sales progression to get buyer and seller to the point of exchange of contracts
• But then the seller backs out and decides not to exchange contracts and sell

The estate agent would say they've done all the work required of them, so they should get paid.

But if the buyer withdraws (as opposed to the seller), no fee is payable.

But the problem is that the situation might not be that clear cut. For example,

• The buyer says "I'm ready willing and able to exchange contracts at £25k less than I originally offered"

• The buyer says "I'm ready willing and able to exchange contracts for completion on <date>. But that <date> is unachievable / unacceptable for the seller

• The buyer says "I'm ready willing and able to exchange contracts as long as the seller gets the roof fixed before completion". But the seller doesn't want to fix the roof.

• The seller believes that the buyers are timewasters who are not ready, willing and able buyers, so the seller wants to withdraw. But the estate agent insists that they are genuine ready, willing and able buyers.

So possible solutions might be…

• Tell the estate agent that you will only instruct them if the "ready, willing and able buyer" clause is removed. (I've found one or two estate agents who will agree to this, but most won't.)

• Tell the estate agent that you will only instruct them if they agree to your clarifications / modifications to that clause - to address 'grey areas' like the ones mentioned above.

(But don't expect the estate agent to write the clarifications / modifications - they probably won't. You should write them and then propose them to the estate agent.)