Charges for not selling .

Bigphil1474

The revised numbers sound standard stuff. The fee if you cancel wouldn't apply if you sell yours but can't find a house, unless you give up looking. You'd just keep looking until your buyer pulled out and you would be off the hook.

eddddy

Bigphil1474 said

The revised numbers sound standard stuff. The fee if you cancel wouldn't apply if you sell yours but can't find a house, unless you give up looking. You'd just keep looking until your buyer pulled out and you would be off the hook.

Yes - but some people might see that as a bit immoral…

"I've decided not to move, but rather than tell the estate agent and buyers, and having to pay a fee, I'll pretend I'm still looking - and leave my buyers in limbo, maybe for a few weeks/months, until they get fed up and walk away."

And I've heard of some estate agents claiming a fee on the basis that they had found a "Ready, Willing and Able buyer" - even though the seller hadn't found a place to buy.

It's quite a messy, imprecise area. To avoid arguments, I always try to go with agents with straightforward "no sale, no fee" contracts. But in some areas of the country, they seem harder to find.

mta999

In general these type of clauses are so that the agent gets paid no matter what once you have accepted an offer

The problem is (as you say) what happens if the chain falls apart or the person you're buying from pulls out and you can't find another suitable place to move to - you then have to pay your estate agent fees through no fault of your own.

I would avoid these clauses and in fact if you Google 'Ready Willing and Able' clauses (of which this is a subset) you will find a lot of discussion about it

my view is not to accept it

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82047066#Comment_82047066

Thanks it says

i) If unconditional contracts for the sale of the property are exchanged in the period during which the Agent has Sole Selling Rights, even if the purchaser was not introduced by the Agent but by another agent or by any other person, including the Client/s.

eddddy

sidneyyoungblood said

Thanks it says

i) If unconditional contracts for the sale of the property are exchanged in the period during which the Agent has Sole Selling Rights, even if the purchaser was not introduced by the Agent but by another agent or by any other person, including the Client/s.

Yes - and based on what you've said, the period that the Agent will have Sole Selling Rights is a minimum of 4 weeks.

The period of Sole Selling Rights will end after you've given 2 weeks notice.

The Agent will not have Sole Selling Rights for 6 months - unless you decide to let the contract run for 6 months.

(FWIW, the above is based on the comments you have made; The Estate Agents (Provision of Information) Regulations 1991; and the Property Ombudsman's Code of Practice. It's extremely unlikely that your Agent's contract says something significantly different.)

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82047405#Comment_82047405

Thanks , just confused by the wording ..

It is was the next paragraph which got me confused as it followed straight after the sole agent section .

• ii) If a purchaser first introduced by the Agent during this agreement subsequently purchases the property within six months of the termination date of this agreement.

So just to confirm they have sole rights for atleast 6 weeks which means if anyone purchases the house they will get a fee even if they have not introduced them .

Upto 6 months from the end of the contract if they have introduced someone who eventually buys even if the sole rights have ended and sold with another agent so two sets of fees .

If we fail to find a property after accepting an offer we are still liable for half of the selling fee .

We have to pay £500 if we decide to change agents which covers the cost of their advertising etc .

Is it worth asking them to change the contract as it getting really confusing , what would you say I should ask for from the contract . Sole Agency - no ready willing able etc. thanks again

eddddy

So just to confirm they have sole rights for atleast 6 weeks which means if anyone purchases the house they will get a fee even if they have not introduced them .

Yes

Upto 6 months from the end of the contract if they have introduced someone who eventually buys even if the sole rights have ended and sold with another agent so two sets of fees .

No - not 2 sets of fees

When you end the contract with the first agent, new agent saying you ask for a list of all the people they have introduced

Before signing a contract with the new agent you say to them (in writing) "I will provide a list of people introduced by the previous estate agent. You must agree that if anyone on this list approaches you about my property, you will refer them back to the previous agent. If you don't agree to this, I will not instruct you."

If we fail to find a property after accepting an offer we are still liable for half of the selling fee .

I can't comment on whether that's correct, unless you quote the exact wording. (But in general, I would try to avoid estate agents with terms like that in their contract.)

We have to pay £500 if we decide to change agents which covers the cost of their advertising etc 

Hmmm… I would never instruct an estate agent with a term like that in their contract. In my mind the estate agent is saying "I believe we can sell your property. But if I'm wrong, and we can't sell your property - you have to pay me £500, for being wrong."

But it's your choice.

Is it worth asking them to change the contract as it getting really confusing ,

It sounds like a very standard estate agent's contract - but with a couple of fees I don't really agree with.

If you ask them to change their contract, they'll almost certainly say "no".

Instead, you should try putting forward your requirements, with a commitment to instruct them, if they agree:

"I will instruct you on the understanding that you agree to the following terms:

1. If you are unable to find a buyer for my property, I do not agree to pay you a withdrawal fee
2. etc
3. etc"

Sole Agency

Trying to convert a "Sole Selling Rights" contract into a "Sole Agency" contract might be a step too far.

Why do you want a Sole Agency contract instead of a Sole Selling Rights contract?

Do you see a possibility of a buyer approaching you privately? If they did, do you want to take on the hassle of dealing with them directly, without the help of an estate agent.

If you really want a Sole Agency contract, you should probably find another estate agent who offers them

sidneyyoungblood

https://forums.moneysavingexpert.com/discussion/comment/82048094#Comment_82048094

Thanks again it is much appreciated

If xxxxx agree a sale on the property and you wish to pull out of the sale and no longer wish to sell you will be liable to pay 50% of the selling fee.

The worry as mentioned if a chain falls through or cant find a suitable property will the agent or buyer hang on indefinitely .

eddddy

If xxxxx agree a sale on the property and you wish to pull out of the sale and no longer wish to sell you will be liable to pay 50% of the selling fee.

If you explicitly say that "you wish to pull out of the sale and no longer wish to sell" then you'll have to pay the fee. But if you are looking for a place to buy, and the buyer gives up waiting and walks away, you shouldn't have to pay a fee.

I guess there are grey areas - e.g. if things fall apart - was it the buyer who pulled out first or you who pulled out first? (Which is one reason I don't like these types of clauses.)

Herzlos

Normally the fees don't apply if the chain falls through, because the house would still be on the market and will sell later.

The terms boil down to the agent wanting to be paid for work done: If they find a buyer and that sale happens, or if they find a buyer and you decide you no longer want to sell, then they've still done 99% of the work.

It's to avoid people who get the agent to do the work, find a buyer and then cancel the contract with the estate agent to save the fees.