Signed contract with agent with a capped comission, agent says pay full comission!

seth · 29 February 2008 at 1:11PM

chappers wrote: »

.........Was every page of the contract signed, the only wriggle out I could see is if say one of the middle pages was altered and is different to their normal contract, then they will try saying that you altered it at a later date......

Thankfully it is a one pager! Thank you for pointing this out. I was a bit worried about all the costs and proceedings they refer to.

This is the text from the Estate Agents solicitor. I've anonymised the personal data

Seth.

Dear Sirs

Re: Sale of ********** ("the Property")

We have been instructed by *******.
Our client has instructed us because of your failure to pay in full our client's invoice in the sum of £*********

Our client does not accept that its commission is limited to a "maximum" £3,500 + VAT, as you suggest in correspondence. Our client agreed to market the Property in accordance with its standard terms and subject to a sales commission agreed at 1.4%. We enclose a copy of our client's standard terms which you will see provides for a minimum, rather than a maximum, commission of £XXXXX + VAT. It is clear, therefore, that our client's standard terms have been altered without their consent.

We understand that on <Date removed>, our client sent you a "soft" copy of its standard Letter of Appointment ("LOA") by email. In between our client sending you the LOA and you signing the same, clause 3 was altered to make, inter alia, the "minimum" fee to a "maximum" fee. There also appears to have been other changes to the length of the agency.

Our client has raised this issue in previous correspondence and we note that you do not dispute that you amended the LOA. Please now confirm whether you did alter the terms of the LOA before signing it? If you fail to address this simple question, we reserve the right to make reference to your failure to respond on the issue of costs if proceedings are subsequently issued and you deny altering the LOA.

We look forward to hearing from you within 7 days of the date of this letter. If you do not respond, proceedings will be issued without further notice.

barnaby-bear · 29 February 2008 at 1:15PM

seth wrote: »

Thankfully it is a one pager! Thank you for pointing this out. I was a bit worried about all the costs and proceedings they refer to.

This is the text from the Estate Agents solicitor. I've anonymised the personal data

Seth.

Dear Sirs

Re: Sale of ********** ("the Property")

We have been instructed by *******.
Our client has instructed us because of your failure to pay in full our client's invoice in the sum of £*********

Our client does not accept that its commission is limited to a "maximum" £3,500 + VAT, as you suggest in correspondence. Our client agreed to market the Property in accordance with its standard terms and subject to a sales commission agreed at 1.4%. We enclose a copy of our client's standard terms which you will see provides for a minimum, rather than a maximum, commission of £XXXXX + VAT. It is clear, therefore, that our client's standard terms have been altered without their consent.

We understand that on <Date removed>, our client sent you a "soft" copy of its standard Letter of Appointment ("LOA") by email. In between our client sending you the LOA and you signing the same, clause 3 was altered to make, inter alia, the "minimum" fee to a "maximum" fee. There also appears to have been other changes to the length of the agency.

Our client has raised this issue in previous correspondence and we note that you do not dispute that you amended the LOA. Please now confirm whether you did alter the terms of the LOA before signing it? If you fail to address this simple question, we reserve the right to make reference to your failure to respond on the issue of costs if proceedings are subsequently issued and you deny altering the LOA.

We look forward to hearing from you within 7 days of the date of this letter. If you do not respond, proceedings will be issued without further notice.

Aren't we always told to read something before signing it.... :rolleyes:

Generali · 29 February 2008 at 1:25PM

I don't see that they have a case. They are presumably either:

1. Trying it on in which case you need to stand your ground.
2. Think they have a case. If you disagree then let the courts decide. It's what they're there for.

In fact, as you're paying your solicitor for this, I'd be inclined to get him to send a letter saying that as you have a signed contract and you are prepared to pay that amount and no more that you are not prepared to engage in any further conversation about it, in other words, take the money or sue.

dekh · 29 February 2008 at 1:29PM

If they don't agree to the signed contract ... then you could agree the alternative that there is no contract and therefore no fees. So accept the capped fees or so long dudes. Make sure that your solicitor deducts any additional fees for having to deal with this breach of contract,if that's what it is, from the capped fees you pay to the EA.

I would also keep a note of your time and expenses and see if you can deduct those from the capped fees too.

Oh, write back to their solicitor and inform them who your solicitor is and tell them of the breach of contract, send them a copy. :cool:

That's just a humble opinion though.

Congratulations on selling your house BTW

seth · 29 February 2008 at 1:55PM

Generali wrote: »

I'd be inclined to get him to send a letter saying that as you have a signed contract and you are prepared to pay that amount and no more that you are not prepared to engage in any further conversation about it, in other words, take the money or sue.

That sounds like a well reasoned approach.

(I'm a bit scared of going to court as I've not done this before)

seth · 29 February 2008 at 1:58PM

dekh wrote: »

If they don't agree to the signed contract ... then you could agree the alternative that there is no contract and therefore no fees.

Rolf

dekh wrote: »

I would also keep a note of your time and expenses and see if you can deduct those from the capped fees too.

Will do, what rate should I charge?

dekh wrote: »

Congratulations on selling your house BTW

Thanks

dekh · 29 February 2008 at 3:31PM

seth wrote: »

Will do, what rate should I charge?

I'm self employed so I'd just charge my hourly rate, If you are salaried work what you earn per hour and charge that. More importantly is to keep track.

As a rule used by solicitors, split each hour up into units, 10 units per hour (6 mins I didn't have to get a calculator). If you take a call that's a unit. If it last 8 minutes that's 2 units. If you right a letter, a unit. etc. Plus all expense like phone charges, postage receipts.

You might get nowhere with this but it's worth a shot, keep giving your sol and the ea an update on the number of units you've spent

Keep us informed!

seth · 9 April 2008 at 10:31PM

Not heard anything from the Estate agent or their lawyers, nor holding my breath...

My solicitor transfered all the money including the money set aside to pay the estate agents commission back to my account.

So they have not got the money I offered, the fixed fee. They have not got what they asked for based on their standard contract.

I can only think they are considering their position or are making some moves but are taking their time...ever time something comes in the post I assumed its from their solicitors! Getting paranoid. But from my point of view each day with no contact is a good thing.

Thanks to all the folk who replied, and all the tips advice etc I really appreciate it.

Of course if there is any update (which I think there will be I got the solicitor letter early Feb 08 so its only been a month and with holidays etc I suspect I'll get a letter just after the easter Holidays....