EA Commission for "selling" our house to their vendor?

.:ian:.

This is a vaguely strange one:

We are getting ready to put our house on the market, had some valuations, but have not instructed any EAs or signed anything..

The vendors of one of the houses that we have viewed and are interested in obviously expressed an interest in buying a smaller house in the same area, and their estate agent suggested that they might be interested in our house.. (ie swap houses + cash)

This Estate Agent has now told us that they have arranged a "special rate" of just 1% for their commission.. hmmm

How can they insist on a fee ? Morally perhaps, (EAs may have some difficulties with this concept ) Legally, I dont see how without no contract nor even instruction to market the property.

The only "work" done is to phone us up to see if their clients could look at our house.. no accompanied viewing, etc.

We are considering a "goodwill" gesture for their "goodwill gesture" of pointing out we would be selling our house soon to their client As you would if the postie mentioned your house to a potential purchaser

Also AFAICT we shouldnt need a HIP as no marketing has taken place?

TIA

Ian

lynzpower

There has been marketing taken place, as the EA has mentioned it to a prospective buyer ( sigh)

However, you did not instruct this, so therefore it shouldnt be needed.

I would recommend you tell the agent that you intend to sell privately and not through an agent. They are just trying to get you to sign with them. Every EA ( and I used to be one) will know someone who might be interested, but that is not a sale, in anyones book.

Morally - v questionable, legally, nothing to bind. In fact, this behaviour would put me off going with them, they are seemingly just trying to drill you down to choosing to go with them!

MissMotivation

No Marketing Agreement/Contract.....No fee to pay.

IMO they are jusr trying it on, probably kicking themselves that they didn't get you to sign a contract before they "introduced" the buyer.

As a gesture of goodwill maybe you could offer them a token amount, legally, they don't have a leg to stand on.

.:ian:.

Thanks, thought as much. Its going to be amusing to see how this all goes

Mutton_Geoff

If you offer them anything, even a token amount, you would be admitting that a contract was in place between you. Remember that contracts can be agreed verbally and that an agent only needs an "introduction" to gain their fee. Don't have anything to do with them at all unless you want to pay the 1.175% (after all, agents fees are always plus VAT).

silvercar

They are making money from your purchase, without your sale it wouldn't happen. Tell them that you may consider signing up with them in the future but if the sale to the vendor goes ahead that would be a private arrangement and they should be satisfied with the commission they gain on your purchase.

Jorgan_2

I would also mention to the agent that they are required to inform you of their fees before any marketing takes place. If they didn't do this they have broken the law.

.:ian:.

Thanks all.

Well that agent wont be getting anything, not even a card at Christmas lol. He lied about the vendors response to our offer, saying they were considering it, when in fact they had rejected it..

We have instructed the other vendors to not go via the agent for anything connected with our house an contact us directly.