Estate Agent - 1.5% + VAT Fees and 12 week tie in !!!

patrick187

We are using a Local estate agent (by far the biggest....anecdotal evidence would suggest 50% of all boards are this estate agent) who has fees of 1.5% plus VAT and we are tied in for 12 weeks! This sounds a little steep to me. I did not sign the estate agent contract - my flat mate (joint owner) was responsible for that. The contract says :

"Should another agent be instructed then the multiple agency commission rate of 4% + VAT will apply. The fee becomes due in the event of xxxxxx introducing a purchaser who exchanges unconditional contracts subject to sole agency terms above."

"Sole agency miniumum period is 12 weeks calculated from the date of this agreement and will continue therafter until terminated by either of us giving 28 days notice in writing to the other"

1) My flat mate should have read the contract before signing. However hindsight is wonderful and we are where we are ! Although saying that I have signed nothing so could I get my own estate agent..or would we still be liable to the 4% fee...lol???

2) Perhaps we should get quotes for other agents and then approach the original agent and threaten to leave. Presumably we would not be able to do so until 11 weeks time! In which time we will have lost more and more value off of the house.....not that there any buyers in this market anyway!!!

3) Are we able to take the HIP we paid for elsewhere?

4) If I or my flat mate was to buy the other out would we pay any estate agency fees if the transaction took place within the remaining 11 weeks?

FYI - Trying to get out of the property market to live with parents again whilst the prices continue to dive!

Thanks for your help guys,

PATRICK
:beer:

ncooper1974

I'm always amazed that people never seem to negotiate over the commision OR the tie in period when they come to sell.
We recently put a renovation on the market and got 3 valuations. All 3 agents wanted at least 1.5% commision with a 16 week tie in. We eventually, with very little effort, went sole agency with one agent on a 1.25% agreement with NO tie in. We told them that if we weren't happy with their service, or we felt they were not working in our best intest, then we didn't want to wait 12 weeks before ending the contract.
As it turned out, they were cr*p and I ended the contract over the phone, then went with another agent who successfully sold for just 1% commision.

What I'm trying to say is just be prepared to stand your ground, and if you're not happy with the terms, then re-negotiate or get a different agent

patrick187

Apart from building a time machine ... any advice about what we can do now.... or do we just pay the 1.5%+VAT? I cant see that we have much room to negotiate when we are tied in. I suppose the only thing would be to threaten to take it off the market until after the 11 weeks but as I alluded to before 11 weeks will no doubt see prices fall further.

doingwhatican

Just give the EA the 28 days notice to terminate the contract in writing. If they then ask you why you want to cancel, tell them - they are too expensive and have too long a tie in period - see if they are willing to renegotiate or not.

princessflea

DoozerGirl, Jorgan?
Correct me if I'm wrong anyone but don't both owners have to sign the contract with the EA for them to market the property?
I would say that your joint owner might have agreed but you did not so the contract isn't valid

Jorgan_2

I've just seen this thread pricessflea and that is my train of thought as well. I suggest the OP speaks to the EA as soon as possible to establish whether joint signatures are required. Do not accept any viewings or return any paperwork to the EA, which may constitute accepting the terms of the contract.

As for giving the agent 28 days notice, they will only accept that after the initial period has finished.

chickmug

princessflea wrote: »

DoozerGirl, Jorgan?
Correct me if I'm wrong anyone but don't both owners have to sign the contract with the EA for them to market the property?
I would say that your joint owner might have agreed but you did not so the contract isn't valid

It can vary and could be whoever signs the contract accepting the terms of that contract. One, or both, or more (If there are more than two) joint owners. Again back to looking at the exact wording of the actual contract.

patrick187

Tthe only reference in the contract says:

"xxxxx accepts the vendor's instructions to act......"

There is no reference to multiple signatures being required.

Only thing is that they have arranged a viewing for Friday so it probably is a all a bit late! Ho hum.

RichyRich

You would only owe them 4% (or 1.5%) if they introduced a buyer to you, and you accepted that buyer's offer. I doubt if you called them and said you didn't want them any more there would be all that much they could do. They wouldn't have suffered a material loss, so couldn't sue you for damages. I'd be tempted to ring them, and tell them you don't want to sell the house any more. If they tell you they need 28 day's notice, tell them that's fine, they can keep advertising the house in their shops, but the "For Sale" board will be kept in your garage and storage of it will be charged at £10 per day.

At the end of the day, you don't owe them any money until the house is sold. Ending the agreement with them should be easy enough.

sassybooboos

dont know where you live but there are two agents in our town. one is offering 0% for 12 weeks however the house has to be sold at a lower price.

but the one i used only charged 0.5% because they were new and they were brilliant. obviously wanted to make a name for themselves.

look at all the agents in your town, and always negotiate as they always come down.

happypig

As I read it, the contract may be terminated with 28 days written confirmation after the initial term of 12 weeks (presumably you could give your notice 8 weeks into the contract so that it would end exactly after 12 weeks). Whatever you do, do not instruct another agent without making them aware of the situation or you may be liable for two lots of fees! I've seen this happen.

Your best option may be to speak to the agent. If they refuse to budge on terms, then ask them if they will do a Joint Sole Agency fee at the same rate with another agent. They may agree to this rather than lose the instruction entirely. At least then you would have greater exposure and have double the people working to tie up a sale.

Regarding the HIPs, you may be able to take this with you depending on the agent. Some of the big corporates will do their own HIPs either free or discounted but will not allow these to be taken away. With a majority of the independents, you should be okay; I believe in most cases the EPC part of the HIPs is done either by the agent (if qualified) or outsourced, then tied with a solicitors searches, etc. I guess a rule of thumb would be if you paid full whack then you can, if it was a freebie then not. Don't ask if you can take it, just ask to take it, and gauge their response..

Good luck!