Charges for not selling .

sidneyyoungblood

A bit of advice please looking to sell my house after phoning a few agents settled on one but received the contract to sign and there is a clause to say that if we agree a sale but decide to cancel or pull out we will be charged half the selling fee ( .5% of the value of the property ).

Also it says there is a a 6 month tie in period for sole selling rights so even if the property is not sold to a client they introduce the 1% selling fee still applies .. First time selling so not too sure if this is standard practice . thanks

sammyjammy

It may well be standard in your area although 2% seems alot to me based on personal experience. So they find you a buyer and the offer is accepted but you decide not to go ahead, do you think its ok not to pay them anything for the job they did? Nothing stopping you trying to negotiate the fee.

Brie

I'd want to know what the difference is between the minimum 8 week contract and the 6 month tie in period.

MeteredOut

It doesn't really matter if its standard practice or not; if its in the contract you sign, then you are agreeing to it.

I'd personally not accept the 1% surcharge (out of principle, as I can't see a scenario where I'd accept an offer then pull out), but I'd not get to that point as I'd never pay any estate agent a 2% sales fee (presumably 2.4% once you include VAT).

user1977

Is the exact wording "accept an offer but decide to cancel and not sell" or something more elaborate?

A "ready, willing and able" purchaser would be the more usual test (if you accepted the principle of paying in such circumstances at all) i.e. somebody who is actually ready to complete and not merely made an offer.

Myci85

Is the 6 month tie in period for people they've introduced who might go on to buy it?

I've seen lots on here cautioning against having a sole seller clause.

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82046588#Comment_82046588

Thanks . Revised the original post as I was in rush in the morning and missed some details . .it says

If we agree a sale but decide to cancel or pull out we will be charged half the selling fee ( .5% of the value of the property ) . The worry is we are part of a chain and if we accpet an offer and unable to find a suitable property we will still be charged , this will be held as credit if we continue to use their services ..

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82046557#Comment_82046557

sorry for the confusion , it is 1% selling fee plus vat and a charge of half that if we pull out or cancel after accepting to sell even if this is due to not being able to find a property to move into .

eddddy

sidneyyoungblood said

Also it says there is a a 6 month tie in period for sole selling rights so even if the property is not sold to a client they introduce the 1% selling fee still applies

Can you clarify what you mean?

If you mean that the minimum contract term is 6 months - that's ridiculously long

Or if you mean that a fee is payable to the agent for up to 6 months, if somebody who was introduced during the sole selling rights period goes on to buy - that's completely standard.

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82046909#Comment_82046909

the contract is for a minimum of 4 weeks with 2 weeks notice to leave but the sole selling rights remain in place for 6 months even if they do not introduce buyer .

eddddy

sidneyyoungblood said

the contract is for a minimum of 4 weeks with 2 weeks notice to leave but the sole selling rights remain in place for 6 months even if they do not introduce buyer 

It sounds like you might have misunderstood.

In slightly simplified terms, I suspect that the contract is saying…

• 1) You would be giving the estate agent sole selling rights during the contract period - which might be 4 weeks or longer

• 2) People will be 'introduced' to your property during that period (they might be introduced by the estate agent, introduced by you, or introduced by somebody else). However, let's say you get no offers

• 3) Then you terminate the estate agent's contract

• 4) If one of the people 'introduced' during the contract period comes back within 6 months and makes an offer, and you sell to them - you have to pay the estate agent their fee. (Even if it wasn't the estate agent who originally 'introduced' them - for example, it might have been you that introduced them during the estate agent's contract period.)

But if you sell to somebody 'new', who is 'introduced' after you've terminated the estate agent's contract - you don't have to pay the estate agent a fee. (Even if it is within 6 months.)