Estate Agent want a fee

[Guest]

Good afternoon all

I am new to the forum and I am looking for a bit of advice. My property was up for sale for a period of around 6 months. During this time it sold and then it fell through on a couple of occasions. The agent then recommended that I put the property up for lease, and it was successfully leased to a tenant for which I pay the agent a percentage. I had a verbal conversation with the agent and asked them to remove it from the market and I would review my position in October and potentially put it back up for sale. A couple of months into the tenancy the tenant approached me and asked whether I would be prepared to sell. I said yes, but at the right price. We were not in agreement on price. A month or so later we came to an agreement.

The agent believes they are entitled to a fee under the terms of the original selling contract, which I believe ended when I took the property off the market.

Thanks in advance for any advice.

[Amethyst]

Anything in your leasing agreement with the agent ?

[Scotts Guy]

Good afternoon

There is nothing in the terms of business contract for the leasing. They believe I am still liable through the original contract. I believe that contract ended when I asked the agent to remove the property from market.

[des8]

Did your original contract require cancellation to be given in writing?
Standard wording in estate agency contracts is something like:
" This agreement may be terminated at the end of the minimum period by us receiving from you a 14 days written notice. If no notice is received by us from you the agreement will continue after the minimum period until a 14 days’ written notice is received by us from you to terminate the agreement."

[Scotts Guy]

I've just read through the contract. There is the following clause -


Agency Terms
You will be liable to pay our fee, in addition to any other costs or charges agreed, if at any time unconditional contracts for the sale of the property have been exchanged, with a purchaser introduced by us during our agency period, or with whom we have had negotiations about your property with during the period. Or, if sole agency is selected, with a purchaser introduced by another agent during the period.

Sole Agency
we will act as your sole agents for a minimum period of 20 weeks and will continue thereafter unless either party gives 14 days written notice after the sole agency period. If another agency is appointed the fee will increase to our standard multi agency rate.




So... I didn't provide notice in writing but they did act upon my verbal instruction as the property was removed on Right Move and at no point did anybody view the property after the verbal instruction.


Thoughts?

[des8]

So you did sell to a person introduced to you by the agency.
That person became the purchaser
You admit you had not given cancellation in writing

If it came to a court claim, I don't think it is looking positive for you.

Rather than risk a court action (and all the stress that will incur) why not try and negotiate a reduced fee with the agency.
You could point out they had a percentage for the lease, and remind them that following your verbal cancellation they did stop marketing your property.

[Scotts Guy]

So you did sell to a person introduced to you by the agency.
That person became the purchaser
You admit you had not given cancellation in writing

If it came to a court claim, I don't think it is looking positive for you.

Rather than risk a court action (and all the stress that will incur) why not try and negotiate a reduced fee with the agency.
You could point out they had a percentage for the lease, and remind them that following your verbal cancellation they did stop marketing your property.

Basically.... Yes.

I have already tried to come to an agreement with the agent and they are not prepared to negotiate. My view is that they have acted on my verbal instruction be removing the property from sale. The tenant was introduced by them, but not as a buyer. For which they have been compensated.

My negotiation with the buyer, and the acceptance of their offer was made with the view that I would save commission, otherwise I would have been looking for a bit more. However, I want to do the right thing. I am not in the habit of withholding a fee if it is deserved. From your comment above, you believe the agent is entitled to their fee?

[2222]

Is this England, Wales, or Scotland?

The estate agent needs to belong to an ombudsman service, and I think you should complain to them. It seems to me that the agent accepted your verbal ending of the original sale agreement, despite the agreement saying notice should be in writing. The parties are free to vary the terms of the contract, by agreement, and by their actions the agents evidently accepted your notice. Consequently, the sale agreement was not in force.

Besides that, the agents are not allowed to charge an estate agency fee for the sale to a tenant they have introduced. The court cases about this were CMA v Foxtons, but at least one of the property ombudsmen (TPOS) has included that in their rules of membership.

I would point this all out to your agent, and state that you want compensation for the anxiety and stress caused by their illegal and persistent claims against you. (Of course, you don't really, but it means that they are at some risk if this goes to the ombudsman of an award against them.)

[Scotts Guy]

Is this England, Wales, or Scotland?

The estate agent needs to belong to an ombudsman service, and I think you should complain to them. It seems to me that the agent accepted your verbal ending of the original sale agreement, despite the agreement saying notice should be in writing. The parties are free to vary the terms of the contract, by agreement, and by their actions the agents evidently accepted your notice. Consequently, the sale agreement was not in force.

Besides that, the agents are not allowed to charge an estate agency fee for the sale to a tenant they have introduced. The court cases about this were CMA v Foxtons, but at least one of the property ombudsmen (TPOS) has included that in their rules of membership.

I would point this all out to your agent, and state that you want compensation for the anxiety and stress caused by their illegal and persistent claims against you. (Of course, you don't really, but it means that they are at some risk if this goes to the ombudsman of an award against them.)

Thank you. This is in England. I believe they are a member of the TPOS


Should I explain my position in an email to the agent?

[2222]

Thank you. This is in England. I believe they are a member of the TPOS


Should I explain my position in an email to the agent?

You have to complain formally to the agent, and they have to issue a deadlock letter, but check the TPOS website.

[Kiradevil34]

Generally speaking the estate agent introduced you your buyer as they introduced the tenant so I would say a fee us due to them. Commission is due to them as he wouldn't have known about the property without their introduction. You need to read your agency agrreement and landlords agreement and read up on the property ombudsans guidelines.
I would suggest you negotiate with the agent over perhaps a reduced fee as you've paid them commission during the tenancy to manage the tenancy.
I hope this is helpful x

[Kiradevil34]

If memory serves me correctly even if a property is off the market and someone approachs you to buy privately then commission is still due to the agent even after a period of up to 2 years I think? I might be wrong tho! X

[Scotts Guy]

Generally speaking the estate agent introduced you your buyer as they introduced the tenant so I would say a fee us due to them. Commission is due to them as he wouldn't have known about the property without their introduction. You need to read your agency agrreement and landlords agreement and read up on the property ombudsans guidelines.
I would suggest you negotiate with the agent over perhaps a reduced fee as you've paid them commission during the tenancy to manage the tenancy.
I hope this is helpful x

From what I have read, the tenancy and the selling of a property are two separate things. The agent accepts that, which is why he believes the original selling contract is what should apply - and therefore expecting a fee.

[Kiradevil34]

Depends on the agency agreement and landlords agreement....wow 20 weeks sole selling!!!
I bought my house privately and I wish we'd have gone thru an agent!
some things are worth paying for and estate agents are paid for what they do which as many will say and agree that buying and selling property (most people's biggest asset) is the most stressful thing you'll ever do! A good estate agent works in your interest and doesn't get paid till the job is done....unless you're purple bricks and get paid upfront so don't care if the sale falls thru!
I've known agents who have sold properties without rightmove, rightmove is advertising which the agent paid upfront for and advertising is only the start of the process....conveyancing alone is 8-12 week average and solicitors are also very cautious and sometimes advise their clients not to buy, it's the agent who finds s resolution. Mortgages and surveys also throw up issues you might not know about.
Depends on how much stress you're willing to take but I'd rather pass the hassle onto a 3rd party to deal x

[JaphaSundog]

Is it mentioned in the leasing agreement?