Is Estate Agent owed a fee?

[DavidF]

Good evening


I'm new here and just seeking some advice. I sold my property to my tenant and now the estate agent believe they are due a fee. I am feeling extremely stressed by this and just want to pay them the fee, however it does seem to me like they aren't deserving of a commission. Details as follows -


The Flat was on the market for sale with the agent with no success. Agent suggested to rent it out. I decided to look into extending leasehold at this point to make the sale more attractive and agreed to put it up for lease - short term. Two offers for lease and zero offers for sale, disappointingly. Once I had agreed to lease it I informed agent verbally that I wished to remove the property from sale.

The Agent has told me that the tenant was shown around as a buyer initially and not as a tenant. I challenge this. I was never informed of his interest as a buyer as this would have been my preference. I was also told that he was currently going through a divorce and was selling a property he owned with his wife. He was currently living with his mother and looking for a place to rent. My preference would have been to sell and I was not comfortable with renting and having a random person in my property. So much so that the estate agent had to ring me to put my mind at rest when I told them I had changed my mind and didn't intend to rent any longer. That conversation changed my mind and the rent went ahead. Therefore I don't believe he was introduced to the property as a buyer but as a tenant for a lease. The agent has been paid for this as per our agreement at 10% per month.

A few months later, the tenant approached me around whether I'd be interested in selling. I said I would be once the lease has been extended. But our expectations of price were too far apart. A month or two later he approached me again and we agreed a price. I checked the terms of business for the lease and no mention of commission for the agent was specified. The agent played no part in the negotiations or the sale. I therefore don't believe the agent is due any commission. Their view is different and believe they are covered with the initial sales agreement because they introduced the tenant to the property as a buyer.

I'm interested in views here and whether I should pay the commission. I'm a fair man and if it's due, I would pay


Thank you








edit - I have just looked at the information they sent me post sale. Apparently he viewed the property twice but didn't make an offer, according to the database they use. I was unaware of this when negotiating the price

[jaguarsuk]

The problem is that you terminated the sale agreement once the person had been shown around and it is basically the agents word that they showed them around as a buyer.

Have you sold the property for less than the asking price at the time it was listed with the agent?

If so, what was the asking price then? What have you sold for? And what is their commission demand?

[DavidF]

The problem is that you terminated the sale agreement once the person had been shown around and it is basically the agents word that they showed them around as a buyer.

Have you sold the property for less than the asking price at the time it was listed with the agent?

If so, what was the asking price then? What have you sold for? And what is their commission demand?

Yes. I have sold it for less than asking price with the agent and the lease has been extended since then with an additional 70 years. They want 1% + vat





edit - I have just looked at the information they sent me post sale. Apparently he viewed the property twice but didn't make an offer, according to the database they use. I was unaware of this when negotiating the price

[DavidF]

So... I'm thinking that the stress I'm experiencing over this isn't worth the 5k. And I'm probably going to settle with the estate agent this week

[jaguarsuk]

So... I'm thinking that the stress I'm experiencing over this isn't worth the 5k. And I'm probably going to settle with the estate agent this week

My view was that had they made you aware of this you might not have rented the property and negotiated with him to buy at that stage, plus the advised you to rent to him instead of continuing marketing the property.

I'd need to see the terms of the sale agreement to see what their obligations to you are in respect of him viewing the property and expressing an interest, but not at the asking price?

Or if you do wish to settle with them I would make complaint that they didn't tell you about him viewing it twice and his issue being price, that you would have negotiated to sell at that time, so they have cost you money by not doing so. Given that and as you really can't be bothered with a legal battle over the fee and you loss, you feel they should discount their fee to £2,500 and we'll all get on with our lives.

[DavidF]

The estate agent declined my offer and has issued a notice before court action through their solicitor. I have the terms and conditions of the contract. They believe they are entitled to a fee from anybody they introduce to the property up to a time of two years.*

*They have added 8% interest and £250 for the issue of the letter. And want it paid within 7 days


should I fight it? Should I get legal representation for court?