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My late mother's flat has been on the market with a local Estate Agent for a couple of weeks. Prior to this I had asked the Manager (Warden) of the complex to readily show anyone around who was interested.
Yesterday a cash buyer has been shown around via the Manager (not the Estate Agents) and have made an offer.
The Estate Agent was taken on as a Sole Agency so where do I stand?
The potential buyers did not use the Estate Agency at all and have not see it advertised anywhere (they just happened to be looking at the complex when the Manager pointed them in the direction of the flat).
I've had no offers from any clients shown around by the ES.
Help please!
As always many thanks T
What does the contract you signed with the Estate Agent say?
If the EA has no record of phone calls, particulars being sent, viewings arranged, etc. and the buyer has dealt soley with you then you can tell the EA to shove it as effectively you introduced the buyer (could have been a friend of yours for example).
But to avoid the EA fees you will need to keep all future dealings direct with the buyer as well.
Edit: but, as Cheesy has rightly pointed out,check your contract first. And you will probably still have to pay for advertising/board etc.
if the cash buyer is serious can you not tell the EA to take the flat off the market, thus ending your contract with them and proceed with the cash sale on your own??
MartynS - that was what I was thinking but would they check and cause problems if the flat sells shortly after I end the contract? 🙁
ould they check and cause problems if the flat sells shortly after I end the contract?
Who cares? An EA's job is to sell the house - they haven't, you have. But your buyer probably saw the for sale sign which the EA put up but you will probably have been billed for separately.
Ask the estate agent what they normally do in such circumstances. As above - they can't expect to be paid in full when they didn't provide the service.
But trying to prove that the potential buyer didn't see it via an ad placed by the agents will be impossible.
Assuming the manager of the complex will vouch for his actions and the way in which he was contacted by the potential buyer, I think you might have to reach a compromise with the agents.
IIRC many agreements may stipulate that the agent gets a fee even if they don't introduce a buyer, this may even be at commonlaw for sole agent agreements.
There is a difference between 'sole agency' and 'sole selling rights'. If you are signed up as 'sole agency', you may be liable for reimbursing their marketing fees (could argue this isn't anything if they haven't advertised it); 'sole selling rights' you will have to pay the the fee you agreed to regardless of who did the introduction.
HTH. I'm not an estate agent, but I've just signed up with one to sell my house so I boned up on the contract issues.
Dave
IIRC many agreements may stipulate that the agent gets a fee even if they don't introduce a buyer, this may even be at commonlaw for sole agent agreements.
Oooo not sure about that one CA..... I could ask my BIL who is an EA but he'll be playing tennis - they're that busy! Which is also an issue. EA have been losing money for years and will probably fight for every penny they can.
As al says, it's quite common for a sole selling rights [s]agency[/s] agreement to cover non-EA introduced completions in their fee agreement. Possibly at a lower rate, but still there.
Check the wording of your agency agreement in detail.
Not sure it can be assumed in common law though. There have been cases but they are over very very big fees.
This covers sole agency, but its not the same as sole selling rights.
http://www.oft.gov.uk/news-and-updates/press/2008/81-08
Mike Haley, OFT Head of Consumer Protection, said:'It remains the case that sellers who sign a 'sole agency' agreement with an estate agent could be liable to pay the agent their fee even if another estate agent ends up selling the property. This Court of Appeal decision helps house sellers and estate agents understand more about the circumstances where this might or might not be the case.'
I did this when I sold my house - I found a buyer, not the EA. I left my house on the market with the EA for the stipulated contract time (10 weeks IIRC), then cancelled the contract with the EA and proceeded with the buyer myself. The contract did say something about the agent getting a small fee if the house sold but they didn't introduce the buyer, but I couldn't see how they could have enforced that once the contract had ended. Say nowt would be my advice, leave it with them for as long as you have to (no sell, no fee?), then proceed with the buyer. If it goes belly up, just put the house back on the market.
Thought so...a mate went to court over this (as solicitor).
Fair enough re. common law, note my cunning use of the word "may" 😉