Estate Agents and private sale

bargain_babe

I have just instructed an Estate Agent who seems to be charging quite a low amount, 1% which will include the hip pack. I managed to get him down, thanks to the tips on here, down from a sole agency agreement of 12 weeks to 8 weeks.
I have already posted flyers in the local area so have tried to sell privately.
If a purchaser is introduced by the Ea, I know I will have to pay him. Can anyone tell me where I stand if it's due to one of the flyers that I have posted that a buyer comes forth. Do I still have to pay the EA.

Also when the 8 weeks are up, if it is not sold, am I able to try another EA without paying the original one or will I still have to pay both? Sorry but haven't done this before. When I moved 10 years ago, sold (or should I say, gave away!) my house to the developers of my present house so have no real experience of selling with EA's.

TIA
bb

ajaxgeezer

If you are on sole agency you'll generally still have to pay the agent, even if the agent doesn't introduce the buyer.

You can generally get an agent to do the same commission fee for dual agent as they will for sole. Their fees are their opinion and negotiable. On a dual agent contract, the agent would generally not get the fee if your flyer led to the sale.

clutton_2

read your contract

bargain_babe

thanks for the reply ajax, clutton thanks for your reply too. I have only instructed them today, so no contract yet to read. Thats why I am asking now, so I will know what it means when I get to see a copy.

ajaxgeezer

I'm in WM too, BB. If you're close to me then I may have experience of your agent. WHo are you using?

bargain_babe

Paul Jackson

ajaxgeezer

Oldbury's yellow lot I bet you live in the next street to me lol

I've not used them, unfortunately. However, I did use Tom Giles once for the Sandwell coverage while I had Halifax for the Dudley side. On a multi-agent contract, fees were only payable to TG if they introduced the buyer. Paul Jackson and Tom Giles are both TEAM agents so they may have similar terms?

On a sole agency contract I'd bet a pound to a peanut that you'd be liable to pay even if they didnt introduce your buyer. It's a standard question - I'd advise giving PJ a ring to take the doubt out of your mind.

Oh, and say hi to Jo in the ofice for me

jimc_2

Although in the past a private sale was just that and a 'sole agent' wasn't owed a penny, the sad fact is that at the present state of play you will almost certainly have to pay the fee. The 'weasel words' that Estate Agents are now relying on is that if a party other than the instructed agent performs "agent duties" then they are acting as another agent thus the sole agency has been breached and therefore the first agent is owed the fee.

The distribution of leaflets is almost certainly an 'agent duty' and therefore contravenes the sole agency.

The invoking of the 'agent duties' clause is derived from the almost obsolete 1979 Estate Agents Act and is a course of action promoted by the NAEA. It was first used as a threat to private sale websites although nothing has been tested in law (yet).

In any case, it sounds as if you have not yet seen what the contract says about the HIP fee. They're not free! Someone has to do the work and the Agency has the upper hand if they've agreed to include it in the fee.

If it sounds like a bargain - It never is!

Sorry!

Doozergirl

A sole selling rights agreement would mean you have to pay regardless of who introduced the buyer.

A sole agency agreement should not mean that you pay them in the event that you find your own buyer, but you should check the wording of the agreement. You can change that wording with the agreement of the agent.

There is no need for a dual or multi agency contract as there is only one agent. You are not an agent.

If you change agents it used to be that you would not have to pay anything but with the introduction of HIPs, I suspect that you will have a very hefty fee to pay for your HIP if it is supposedly included. (It's often about £400 when it's part of an EA contract)

If you want the feedom to change agent then I suggest that you shop around and find your own HIP which will be cheaper (probably) and there will be no ambiguity as to who it belongs to. You will therefore be able to take it with you to a new agent.

Jorgan_2

bargain_babe wrote: »

thanks for the reply ajax, clutton thanks for your reply too. I have only instructed them today, so no contract yet to read. Thats why I am asking now, so I will know what it means when I get to see a copy.

Have you actually signed up with the agent if you haven't seen anything? The agent has to explain to you their terms & conditions in writing, before they can commence marketing.

If you haven't signed anything then now is the time to sort things out with the agent you have chosen to use.

bargain_babe

thanks for your help guys. As I thought there seems to be some different ideas about whether or not I would have to pay if I introduced the buyer. As it happens, whilst I was out, my OH had a visit from prospective purchasers and showed them round. Didn't sound too hopeful, but it shows you can attract people by doing something yourself.

I will settle it when the man comes round to measure up tomorrow. I don't want to pay if I have done it myself.

Thanks for the notes about the HIP, I already had that sorted. The EA told me it was included in the 1% and that I can transfer the HIP if needed but will pay for it if there is no sale with them. Its £349. inc. It's just with the other EA I saw, I would have to pay £400 extra on top of the fee, which was over 1% and I had knocked him down by another £100. So it just works out cheaper overall.

So Jorgan and anyone else online at the mo, is it right what Doozergirl is saying, because thats what I had read and thought (Im hoping it is!)

Thanks again