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NewHomeOwner_2
Posts: 62 Forumite
Hi
My parents are currently waiting out a 14 day notice period with their estate agent who has sole selling rights and is still actively marketing the property until the end of this period. They will then be out of contract.
The contract states that the estate agent will be due commission if unconditional contracts are exchanged on the property in this period, even if they find the buyer themselves.
By exchange of unconditional contracts do they mean what we know as 'exchange' between the seller and buyers solicitor?
I.e. If they just showed someone (unconnected to the estate agents) round that they'd found themselves and accepted an offer in those 14 days would that be ok as contracts wouldn't actually be exchanged until far later.
Or do they have to wait the 14 days before they can even show someone else around/accept an offer?
My parents are currently waiting out a 14 day notice period with their estate agent who has sole selling rights and is still actively marketing the property until the end of this period. They will then be out of contract.
The contract states that the estate agent will be due commission if unconditional contracts are exchanged on the property in this period, even if they find the buyer themselves.
By exchange of unconditional contracts do they mean what we know as 'exchange' between the seller and buyers solicitor?
I.e. If they just showed someone (unconnected to the estate agents) round that they'd found themselves and accepted an offer in those 14 days would that be ok as contracts wouldn't actually be exchanged until far later.
Or do they have to wait the 14 days before they can even show someone else around/accept an offer?
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Comments
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I think "the estate agent will be due commission if unconditional contracts are exchanged on the property in this period" means no more than it says - i.e. it doesn't catch contracts exchanged some time afterwards. So letting someone merely view the property is fine.0
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That would be an unusual contract - are you SURE that's what it says? Because if that's all it says, you wouldn't even have to pay commission if they found your buyer, as long as you terminated the contract before exchange!0
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That is very unusual wording. Based purely on what yyou have written, yes, it seems you can do whatever you like at present as long as you delay Excange till the 14 days are up.
(Incidentally, well done for negotiating a mere 14 day notice period).
But please double check. It is far more likely tht if an introduction takes place during the contract period, which later results in Exchange, then a fee is payable.....0 -
Hmmm... this reminds me of some especially 'nasty' EA contracts that I've seen (and have have had big arguments about with EAs).
Look through the contract for a different clause about buyers introduced during the 'sole selling rights' period.
The contracts I'm thinking of say...NewHomeOwner wrote: »...estate agent will be due commission if unconditional contracts are exchanged on the property in this period, even if they find the buyer themselves.
Meaning that if a buyer was introduced before the 'sole selling rights' period, the EA wants commission if contracts are then exchanged during the 'sole selling right' period.
Then another clause says that if a buyer is introduced during the 'sole selling rights' period, the EA wants commission if contracts are then exchanged after the 'sole selling rights' period.
(This can leave the seller unable to avoid paying 2 lots of commission, in some circumstances.)0 -
EAs, mostly crooks in smart cars..Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..0
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Hi
I've now read my parents contract myself.
They had a 12 week contract and after that initial period a 14 day notice could be given.
It's a sole selling rights agreement and under the commission section it says 'the client will be liable to pay remuneration to the agent in the following circumstances:
1) If unconditional contracts for the property are exchanged in the period during which the agent has sole selling rights, even if the purchaser was not found by the agent.
2) If unconditional contracts for the property are exchanged after expiry of the sole selling rights to a purchaser who was introduced by the agent during the sole selling period, then the client will be liable to pay commission to the agent if contracts are exchanged within 6 months after expiry.
My parents are now in the 14 day notice period where the agent has sole selling rights but they don't know whether they can show other people round now/accept offers from people NOT introduced to them by the agent or if they have to wait the remaining 12 days?
Does it just mean they can't exchange, as in solicitors 'exchange' in this period?0 -
So that's exactly the type of 'nasty' contract I describe in post #5.NewHomeOwner wrote: »Hi
My parents are now in the 14 day notice period where the agent has sole selling rights but they don't know whether they can show other people round now/accept offers from people NOT introduced to them by the agent or if they have to wait the remaining 12 days?
No - they should no show people around who were not introduced by the EA. They must wait 12 days.
Otherwise, they will end up having to pay the EA commission, if the house is bought by one of those people.NewHomeOwner wrote: »Does it just mean they can't exchange, as in solicitors 'exchange' in this period?
If they exchange contracts (as in solicitors exchange) with anyone during the next 12 days, the will also have to pay the EA's commission.
Re-read post #5.
Note: This is a nasty contract. If your parents go to another EA, and sign a similar contract - they could end up paying double commission.
They must make sure that that the next EA's contract does charge commission for a buyer introduced by the current EA. i.e. This clause would be unacceptable in the next EA's contract as it stands:NewHomeOwner wrote: »1) If unconditional contracts for the property are exchanged in the period during which the agent has sole selling rights, even if the purchaser was not found by the agent.0 -
NewHomeOwner wrote: »
My parents are now in the 14 day notice period where the agent has sole selling rights but they don't know whether they can show other people round now/accept offers from people NOT introduced to them by the agent or if they have to wait the remaining 12 days?
I'd wait the 12 days, simply because the original EA may claim that the eventual purchaser discovered the property through an advert of theirs in that period. Unless there was a clear and provable situation eg a friend or relative. But you wouldn't want, for example the chance of someone who saw their for sale board being raised. So I'd take that down as a starter, with photos.0 -
As with others, I'd say don't take the risk. If buyers haven't been found in several weeks, presumably there isn't a horde of buyers waiting to view, so a 12-day delay won't hurt, just to be sure.(Nearly) dunroving0
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Thanks all. Confirms what we thought. It's just not worth it for 12 days!
I have to admit though, I don't really understand the stuff about it being a 'nasty' contract?
Surely this clause is fair enough? If my parents eventually did sell to someone who originally viewed through the original estate agent then the original estate agent should get the commission as they did the work? Or am I just misunderstanding/being naive?
1) If unconditional contracts for the property are exchanged in the period during which the agent has sole selling rights, even if the purchaser was not found by the agent.0
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