Contract duration

[Ellie1789]

Hi there,
My husband and I signed a contract for an upfront payment for estate agency services a while ago, and due to issues in selling our flat we are yet to sell it over 2 years later. We always thought that the contract lasted forever as we don’t remember being told that there was a limited duration on the website (it still isn’t there over 2 years later), in conversation nor in the contract. The estate agents are now saying that the contract was only actually for 3 months. We would have never have paid £1800 up front for a 3 month window as we had already tried to sell with another estate agent for about 6 months with no luck, and several flats in the building had been for sale for a year at that point with no luck either. Looking through the contract there is ‘three month sole agency agreement’ at the top of the first page, but none of the terms across the 6 pages talk about a limited duration. I suspect when signing we were rushing with the agent in the room, briefly read the terms but completely missed the words at the top (as you often do with a subtitle). Does anyone know if this is okay to do? I studied contract law as part of my accountancy exams and I thought duration of a contract had to be clearly explained in the clauses, and the signer can’t be relied on to see something such as a subtitle. Please let me know if anyone agrees or disagrees

[echat11]

Hi ELLIE1789

Welcome to LB

Although they have Terms and Conditions, it doesn't mean that they are fair, they may be 'unfair'.
It should be 'clear' and 'prominent' so you understand exactly what you are paying for.

https://www.tradingstandards.uk/medi.../tpo-sales.pdf

[Ellie1789]

Thank you for your reply echat11 Would you agree that it’s not clear too? To me the termination of contract should be discussed in the actual terms of the agreement, not just in a sub title at the top of the page

[atticus]

I would wish to see the document

[echat11]

Could you upload the document, but remove personal details.

Also, more information - https://assets.publishing.service.go...23b/oft311.pdf

[Ellie1789]

Apologies for the slow reply, I don’t get notified about responses. Here’s the contract in various screenshots

[Ellie1789]

The last screenshot is slightly shorter as our signatures are at the bottom

[Pezza54]

The 3 month period relates to the time of sole agency, which you signed up for benefitting from a reduced fee,
The contract has not ended. You are liable for the fee if they introduce a buyer and the sale proceeds to completion
Their terms and conditions state that the customer is liable for the fee when the sale reaches exchange of contracts, which takes place before completion

[echat11]

Human error.

[atticus]

You refer to 6 pages, but have only shown us 4. What follows is subject to the caveat that those other 2 pages may contain something significant.

But looking at the 4 pages provide, my opinion is that it is a poorly drafted contract. Although there are references to the sole agency period, that phrase is not defined, and the only mention of 3 months is in the wording at the top of the document. There is no indication when that period starts - is it on the date presumably shown with the signatures, or is it at the end of the 14 day cooling off period?

All that said, I think you will be in difficulty attempting to reclaim any part of what you paid.

[echat11]

Contact CAB see if they can pass it on to Trading Standards, '3 month period' it's tucked away, not prominent.

[Pezza54]

You should not have paid the £1800 upfront
The contract states £0 is payable now and £1800 is payable on completion
If the agent refuses to continue to market the property, you should ask for your money back.
If the agent refuses both requests, you should consider a LBA and if this doesn't work, a court claim may be necessary

[echat11]

You should not have paid the £1800 upfront
The contract states £0 is payable now and £1800 is payable on completion
If the agent refuses to continue to market the property, you should ask for your money back.
If the agent refuses both requests, you should consider a LBA and if this doesn't work, a court claim may be necessary

Only communicate in writing, email or post. Make sure you get Proof of Postage.

[atticus]

"Agreed marketing option: Pay now (£1,800)". It's on the same page as the 3 months.

Before you reply referring to specific other clauses, I did say that it is a poorly drafted contract. And of course the OP did select that option and pay.

As to whether a 3 month duration is fair or not, I point out that £1,800 inc VAT = £1,500 plus VAT. Estate agent's fees are typically at least 1% + VAT. Now we don't know the asking price, but I think it very likely that it was well north of £150,000.

[echat11]

"Agreed marketing option: Pay now (£1,800)". It's on the same page as the 3 months.

Before you reply referring to specific other clauses, I did say that it is a poorly drafted contract.

I think that should be in the 'Terms and Conditions'. It's all over the place.
It's very 'trappy'.