Estate agent contract advice

Hamiltonc

On our estates agent contract it states the below. If we find our own buyer but don't exchange contracts until left the agent, surely that avoids their fee? The wording is separate but it seems to indicate that any buyer introduced by them is 6 months or two year's, that's fine but for a 100% private buyer surely there's no fee to them if you exchange contracts when not with the agent anymore? I've tried to get certain names excluded but the agent has never responded to that.

1. Sole Selling Rights Agency Agreement
   We will act as your Agents with sole selling rights for an
   agreed minimum period, the Sole Selling Rights Agency
   Agreement will continue after this period, until
   terminated by either party by giving 21 days’ written
   notice.
   During this period of exclusivity the Seller agrees not to
   instruct any other Estate Agent or Property Marketing
   Company to sell the property.
2. Multiple Agency Agreement
   We will act as your Selling Agent. The Agreement may be
   terminated at any time by either party by giving 21 days’
   written notice. The Seller may instruct other Agents to
   sell the property and it is generally accepted that the
   Agent who introduces the buyer will receive the full fee.
3. Fee Entitlement and Client Liability
   Sole Selling Rights Agency Agreement. This means you
   will be liable to pay us the full fee, if at any time contracts
   for the sale of the property are exchanged with a buyer
   introduced by us, during the period of the Sole Selling
   Rights Agency Agreement, or a buyer with whom we had
   negotiations about the property or who viewed the
   property during that period.
   The Seller is also liable to pay us the full fee if a buyer is
   introduced by any other person including themselves or
   by another Agent during that period.
   In the event of the termination of our instruction, our full
   fee will still be payable if a memorandum ofsale is issued
   by another Agent in respect to a buyer previously
   introduced by us who subsequently exchanges contracts
   within six months from the date of our instruction
   ending. This also includes anyone who viewed or offered
   on the property via us during the period of our Sole
   Selling Rights Agency Agreement and Multiple Agency
   Agreement. If no Estate Agent is involved, this time limit
   extends to two years.
   For avoidance of doubt, the Seller should consider the
   terms of any other agreement they may have previously
   entered into, and any subsequent agreement with
   another Agent. This is to avoid the possible liability of
   paying two fees.
   Please provide us with written details of any interested
   parties that have viewed the property via another Estate
   Agent or privately, that you are aware of, prior to us
   marketing the property to avoid any confusion.

mta999

You need to tell them to change the contract to sole Agency not a sole selling rights before signing

Also make sure there is no 'ready Willing and Able' clause in the contract

Hamiltonc

https://forums.moneysavingexpert.com/discussion/comment/82038807#Comment_82038807

I gave the wording I am asking about please

mta999

Not sure what you mean but the agreement starts with sole selling rights and you need to get them.to change it to sole agency

Hamiltonc

https://forums.moneysavingexpert.com/discussion/comment/82038911#Comment_82038911

Can't be changed. From how I read it, it depends what "during the period" is defined as. It's 0 contract with 2 weeks notice. If someone on the excluded list approaches us, we inform agent then would they waive their notice and no fee is due as it's on their excluded list?

mta999

There is no 'excluded list' - the agreement states that they are the sole selling agent which means however it is sold you must pay them

If you terminate the contract by giving the required notice and subsequently find someone then the fee would not be payable unless of course it was someone they had shown around whilst the contract was in force

Emmia

https://forums.moneysavingexpert.com/discussion/comment/82038931#Comment_82038931

If it can't be changed, I wouldn't sign.

Find an agent without the restriction, or empress upon your current agent this is your requirement.

Slinky

It can be changed if you haven't already signed it. If you have, you're stuck with it. Our agent tried the sole selling rights trick with us, I crossed out the bits I didn't agree with, changed 'selling rights' to 'agency'. Everything pre-contract is negotiable including the terms of engagement.

mta999

Even if you have signed, it tell them you want them to change it to sole agency or you will give notice and leave

eddddy

Hamiltonc said

If we find our own buyer but don't exchange contracts until left the agent, surely that avoids their fee?

No - you've misunderstood. In this case it's the date that the buyer was introduced that is important - as well as the date you exchange contracts.

If you introduce your own buyer during the sole agency period - and that buyer goes on to exchange contracts within 2 years - you have to pay the estate agent their fee.

Do you see any prospect of you finding your own buyer? And if so, would you want to negotiate with the buyer, and progress the sale to exchange of contracts? If so, maybe this isn't the best contract for you.

Hamiltonc said

I've tried to get certain names excluded but the agent has never responded to that.

How have you expressed that to the estate agent? I would always make a commitment to instruct the agent, if they agree to my terms.

For example:

"I am happy to instruct you, subject to you agreeing to the following:

• Mr A, Mr B and Mr C have already been introduced to the property, and you agree not to negotiate with them, and you agree that no fee will be payable to you if one of them goes on to purchase the property
• etc
• etc"

Otherwise, the estate agent might think you're trying to do a 'reverse auction' between estate agents. i.e. getting a compromise from one estate agent, then using that to get a bigger compromise from a 2nd estate agent, then using that to get an even bigger compromise from a 3rd estate agent, then going back to the 1st estate agent again to ask for an even bigger compromise, etc, etc.

Edit to add

Hamiltonc said

Can't be changed

FWIW, I've changed every contract I've ever signed with an estate agent. With a recent one, I had a full A4 page of changes - and used the approach of "I will instruct you if you agree to the following" - and they agreed to everything.

Hamiltonc

https://forums.moneysavingexpert.com/discussion/comment/82038953#Comment_82038953

So we have given them names to which they exclude and they said we can give them any potential private one's we've spoken to ourselves so that they are not included in the contract as such. Our previous agent was sole too but their terms clearly stated on exchange of contracts only, this is why I'm so confused