Estate agent fee - is this legal?

[Ali B]

Hi,

Does anyone know if an estate agent can charge you the total 1% if you cancel a sale on your home that your selling as a family member might be interested in it? Nothing had been signed, the house was only sale agreed at the time so we presumed we only had to pay the advertising fees????

I thought they only charged you the 1% if the house was sold and contracts were signed?

Any help would be greatly appriciated.

 

[celtic]

Have you signed a contract? Normally the estate agent charges advertising and administration fees if you withdraw the sale of the house, however does the estate agent feel that maybe you sold the house yourself with the benefit of his saleboard and advertising. check out the contract you have signed,ask the estate agent to produce a copy if you are unsure. if the house was sale agreed then the estate agent may feel that he has completed his side of the contract and found you a buyer and thus you may be liable to pay fees. The best thing to do is check out contract and then consult your solicitor. The estate agent may also think that you are trying a private sale with his buyer.

 

[Trustmeh]

hmm. Whats next? The estate agent wants his fee if he finds you a buyer and you change your mind and don't sell your house. In this market they might try anything to put bread on the table.
http://en.wikipedia.org/wiki/The_Ant_and_the_Grasshopper


If you are trying to avoid solicitors fee by selling this way then maybe you should be out of luck - but if you genuinely have a buyer you found yourself - then I dont see the problem. I have engaged multiple EA's in the past - each knowing he may not get his fee if I or the other EA sells the house. I would recommended everyone to employ EA's this way from the outset - saving confusion later.

 

[Ali B]

Many thanks for your replies. No contracts were ever signed at all. Not even at the beginning so personally I think the estate agent should only get his advertising fees.