Charges for not selling .

mta999

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

I recently instructed an agent and didn't like their contract (which was similar to the above) and I asked them to change it to no sale no fee and they agreed. I didn't ask them to change sole selling rights to sole agency as I wasn't really bothered about that

eddddy

Herzlos said

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.

Yes - that's probably what an estate agent would say, if you asked them to justify the fee. But that's just one specific example.

But here are some other examples:

The buyer says one of the following:

• I'm ready, willing and able to exchange contracts, where the contract states that you will repair the chimney before completion
• I'm ready willing and able to exchange contracts at £10k less than my original offer, due to the roof leak
• I'm ready willing and able to exchange contracts for completion in 6 months time, when I receive my inheritance
• I'm ready, willing and able to exchange contracts, as soon as my surveyor has hacked of the plaster in your lounge to check that the joist is OK

And the seller doesn't agree to those terms so decides to pull out.

Or the buyer:

• Seems to be delaying and wasting time for no good reason, and won't offer any explanation or just goes quiet
• Makes lots of 'silly' pre-contract enquiries and/or asking the seller lots of 'silly' questions, which give the impression that they have unrealistic expectations

So the seller loses confidence in the buyer, and suspects they might never exchange contracts, so the seller wants to pull out and find another buyer.

FWIW, when I've asked estate agents about this stuff they say "We would never charge you in those kind of circumstances" - so my position is "so change the wording of your contract, to make it clear that you wouldn't charge in those circumstances. Because your current wording is too vague."

ExEstateAgent

Ready willing and able means someone ready willing and able to proceed at an agreed price.

If the agent provides such a buyer and you decide the pull out then yes, they should get paid for their work.

If you can't find a property to buy that you like and your buyer pulls out then you don't have a ready willing and able buyer.

It's not that complicated really.

eddddy

ExEstateAgent said

It's not that complicated really.

You've mentioned 2 scenarios out of dozens of possible scenarios.

Before agreeing to an estate agent's contract, a seller should consider all possible scenarios.

The second scenario you mention isn't complicated - the first scenario you mention can be complicated.

Who decides whether a buyer is a "ready, willing and able purchaser"?

What if the seller thinks the buyer is a "timewaster" and wants to remarket with another agent, but the current agent insists the buyer is "ready, willing and able"?

Does "ready willing and able purchaser", mean

• 1) The buyer has signed the contract, and the buyers solicitor has told the seller's solicitor that they are ready to exchange contracts? (i.e. mortgage offer, survey results, searches, answers to their pre-contract enquiries - all dealt with and satisfactory.)

or

• 2) The seller has accepted an offer. (The buyer may or may not have a mortgage offer, survey results, searches completed, answers to pre-contract enquiries.)

The legislation suggests that option 1 applies, but many estate agents try to argue that option 2 applies.

If it's option 1,would the estate agent ask for a letter from the buyer's solicitor confirming the situation?

mta999

I spoke to an agent about this and they said it is generally agreed that Ready Willing and Able means the purchaser is ready and wants to exchange

if the seller ***for whatever reason*** will not go ahead with the exchange then that is when they want their money

The time that this poses a problem for the seller would be if their purchase has fallen through and they cannot find anywhere else to move to that they like. They either have to go ahead with the sale and move into rented temporarily (or relatives or whatever) or not exchange, pay the agents their commission and start marketing again.

That is why a No Sale No Fee contract has many advantages

Herzlos

https://forums.moneysavingexpert.com/discussion/comment/82048382#Comment_82048382

None of those examples are 'ready willing and able' because they either aren't ready (inheritance) or the offer hasn't been accepted.

For a buyer who goes quiet and the seller remarkets after a reasonable time, you couldn't really say the buyer is ready or willing. I assume the estate agent isn't going to want paid if the seller remarkets with them, I'm not sure what happens if the seller decides to withdraw from the market.