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OT: Do I pay the estate agent?

Property for sale, i've paid for the FS sign and listing and there'll be a further fee upon sale.

If I find a buyer myself though, do I pay the estate agent?

Reply to
R D S
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If your Estate Agent has 'sole selling' rights then yes you have to pay them.

If not you may be able to avoid it but I'm sure they would contest it.

If you could prove the buyer had not introduced by or seen the property advertised by the Estate Agent for example.

Reply to
Jack Harry Teesdale

What does it say in the contract?

(normally if you can demonstrate that the sale did not come about because of anything that the agent did - say for example seeing a for sale board or and advert or listing on the property sites, then technically you are in the clear)

Reply to
John Rumm

There isn't one, in that i've signed nothing as yet.

I told a neighbour i'd put it up for sale, he said his mate would be interested, he is. He hasn't made me an offer i'm happy with as yet though, so it's al moot.

I've known the estate agent a while and don't want to piss him off as he and his family are customers of ours, just wondering how others would feel in this situation if they'd effectively found their own buyer.

Reply to
R D S

Sorry to have to say you can have a contract with an estate agent with nothing in writing. There was a case that went all the way to the Supreme Court who held that a phone call between the agent and the owner resulted in an oral contract, even though they never discussed the precise terms.

Reply to
Robin

Doesn't need to be signed to be legally binding.

But it gets tricky proving what has been agreed to.

Most would prefer not to pay the commission on sale, but most agents would prefer the commission is paid.

Reply to
zall

But you've had a discussion and apparently agreed that they will sell it for you so you may be deemed to have a contract.

I think you are probably bound to pay an agent's fee even though it was only a discussion as there is 'part performance' in that the board has gone up and been paid for by you. The neighbour was presumably told

*after* your discussions with the Agent?

As you have goodwill with the Agent I'd suggest a chat with him and see if he will take over your 'introduction' to him and, if a deal is agreed, for a lower fee.

That way its on the market more widely and you may get a quicker sale one way or another.

Reply to
Bev

If the OP has paid the estate agent for the sign etc, that forms a contract. It wasn't a donation out of the goodness of your heart, you were asking them to do something in return.

If the OP went to B&Q and knocked up a sign themselves, and hasn't asked the agent to do anything yet, not so much.

OTOH if the OP hasn't been given any terms which say the agent gets paid even if you sell it privately, then I don't see how they can hold you to that.

(it is possible a verbal contract would be made 'according to our standard terms and conditions' but the OP would need to have been able to see them at the point of agreement - if they're on the website perhaps, but not if they're locked in the agent's filing cabinet)

Theo

Reply to
Theo

If he wants paying i'll pay him, i'm just courting fact/opinion. I'm not looking to s**nk anyone or fall out.

If it's customary to cough up even if they didn't technically sell it then fair enough.

I've seen properties with 2 or more signs up though, i presume there is some sort of prior agreement there?

Reply to
R D S

You may well think so but the Supreme Court didn't agree. They held a contract was formed before the seller saw the terms. See Wells v Devani [2019] UKSC 4. The SC's Press Release covers the main points if you don't fancy the judgment.

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Of course every case turns on its facts. I don't know if Rick has a contract. I do know it ain't as simple as "I've signed nothing" or "I didn't have a chance to see the T&Cs".

Reply to
Robin

I think that case is different. The defendant verbally asked the estate agent to sell the property. According to s.18 of the Estate Agents Act

1979, the EA should have sent the defendant the terms of when their fee was payable, however they didn't. But the EA did facilitate a sale of the property. The defendant tried to use that basis to wriggle out of the fees, but the judgement said the fees were due anyway.

To me that's a bit like asking somebody to do some work at your house. If you don't ask the price, you shouldn't refuse to pay afterwards. The work was done and the worker expects to be paid. Assuming the price is not egregious for the work, it's your lookout that you didn't ask.

This case here is different. You booked somebody to do some work on your house in two months time, and then the next day you completed the work by DIY. You called to cancel the worker, but were told you were on the hook for the price even though the worker hasn't done anything. Now it may be the worker has a contract that says the booking is non-cancellable and non-refundable (Ryanair style), but that is part of the contract you should have been told about upfront. Otherwise it depends on the costs incurred, and for a cancellation sufficiently far ahead that should be minimal.

Agreed. Actually here there is actual legislation: the Estate Agents Act says you need to be told when fees are paid. I don't see how you can be held to the fees if you achieve a sale entirely without the EA being involved and the EA has not fulfilled their legal obligation to notify you of when fees are due.

Theo

Reply to
Theo

Joint Sole Agency is the term.

Reply to
Bev

you bet ya do

Reply to
Jim Stewart ...

You may be right. I have addressed only general points that seemed to me at odds with the law. I have not addressed Rick's particular case because we don't know just what was said.

Reply to
Robin

I know you don't seem currently to have any official written and agreed contract but from my experience of the contract when selling a house it explicitly said I'd have to pay the agent even if the sale came about as a result of something other than their efforts - simply if it was sold while they were my agents, even if they'd played no part in making it happen

Reply to
Murmansk

Yup, agents will typically do a lower commission if you sign up "sole agent". Going multiple agents normally means they want a higher payment, since they work they have to do will be the same in both cases, but the chance of reward lower in the second case.

Reply to
John Rumm

I've been pointed to something that might help you. As I think others have mentioned, agents can only get commission if you find the buyer all by yourself if they have "sole selling rights". Turns out The Property Ombudsman ruled some years ago that agents must take care that sellers understand that's what they are agreeing. So the agent should have told you those were his terms. If he didn't then I can't see how you'd be on the hook for commission if you find a buyer who hadn't even seen the sign or listing.

That said, it'd be best to get a signed agreement that doesn't give them "sole selling rights". Even better if, FTAOD, you tell them then the name of the person you are already in contact with

Reply to
Robin

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