Took house off market and then sold privately: Now auctioneer wants commission?

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Hi,

Was trying to sell house for four months with auctioneer, no offers at all in that period.

I had one client (not through auctioneer) who said they were interested but pulled out since.

After this I spoke to the auctioneer who said the market is very slow in the area and don't expect anything till well into next year.

I took the house off market and had people interested in renting it.

The following week a friend made me an offer for the house, which I agreed to.

I sold the house, but recently the auctioneer found out that I sold the house and says I should pay him his commission. (Never signed anything with them).

Two questions

1. How did he know the house was sold?
2. Do I have to pay this?
 
Re: Private sale or not

1. Chinese Whispers
2. No. Why should you? The auctioneer didn't sell the house...
 
Ive changed the title somewhat to more fully reflect the question.
Let me know if this is allright.

aj
 
You would only have to pay the auctioneer if the auctioneer was instrumental in bringing the sale about. It would be a different story if you had signed a contract or entered into a like document. Tell the auctioneer to sign for it!
 
How did your friend know you were interested in selling? Was it not because you had put it up for sale and auctioneers boards were up? Or is this friend someone from another country with no internet access? The difficulty here is the timing- only one week after you withdrew it from sale you sold it? Think personally you will have to stump up.
 
Changing title is fine with me.

I'm not sure what the law is on this as nobody I know has ever signed anything when selling a house, so I don't think that is relevant.

I probably told my friend it was for sale some months ago over tea, but also he could very well have seen the sign before this, he lives in the area

As for question number 1, is there some type of register I do not know about?
 
If you sold house after giving EA his marching orders I personally wouldn't pay him...Out of curiosity ,how long after you got rid of EA did you agree/sell house?
 
The timing is crucial here, but I would say that you could probably negotiate a price with the EA, but you more than likely will have to pay up anyway.
 
Thanks MrMan, but from the responses it seems half and half hmmm!!. It was only a week after I took it off the market that he made me the offer. In fact I am sure that he waiting for me to do this, so he could get it for a good price. Which he probably did.

Any takers for question number 1?
 
You'll need to check the letter that the EA sent you when you instructed him to sell your property.

If it says that the EA was the "sole selling agent" with the "sole selling rights" and the time period defined *usually 6 months) covers when you sold the house, then he's entitled to his fee. You allowing him to erect a sign and list your property shows you accepted his terms.
 
i thought they could only charge if they could prove the eventual buyer had been introduced to the property through their office or advertising.

my EA had the sole agent thing but when i changed to another agent and then sold i didn't have to pay the first guy for selling something he didn't sell! i did have to pay him for advertising.
 
I think the posters who say you are caught for an auctioneer's fee are correct.

The fact that you didn't sign anything doesn't mean that there wasn't a contract in place - the very fact that you let the EA advertise the house, give them a key and let them show the place means that you had an understanding or a verbal contract if you like that that they should do the work of selling your place for their fee - the amount of which I'm sure they outlined to you when the boards were going up outside?

If you had sold through the agent, does the fact that you didn't sign anything entitle you to withhold their fee? I don't think that would last beyond a single solicitor's letter!!

Suggest you take up Mr. Man's suggestion and work out something with them.

EA's usually claim in the small print an entitlement to their fee if any sale takes place within a certain period of time after their 'contract' with the seller ends. I think the only way to avoid this is if the seller can prove that the EA acted in a way which will have harmed the chances of a sale, such as failing to advertise the house or not turning up to show the place.
 
Did you pay for the EA advertising fees yet?

If this private sale is through a friend - then I would assume it would stand up in court that the EA did not facilitate the introduction of the purchasor.

You had clearly terminated the contract and then managed via your own contacts a sale. However they will still be entitled to claim for their expenses for advertising.

State this to the EA - cover thier out of pocket expenses, then be clear that that is all they are entitled to.

Paddy
 
paddyodoors said:
If this private sale is through a friend - then I would assume it would stand up in court that the EA did not facilitate the introduction of the purchasor.
Click to expand...

Yes, I am finding it quite odd that people are saying the auctioneer is entitled to commission on a sale he had nothing to do with.

If I put something for sale on ebay, and then later sold it offline to my friend, would I still have to pay ebay any sales commission? Of course not!
 
they can only claim a commission if they introduce the buyer to the property.

in this case as long as the person buying it didn't contact them, didn't find out it was for sale by seeing their advertising and never went for a viewing with them, then your're safe.

but you do have to pay their advertising fees for myhome and paper ads.


OP are they asking you for hte full commission i.e. 1% of selling price for example or are they asking you for fees related to Admin and advertising?
 
Another one for EA's, trying to claim commission on the sale of a house in which he didnt introduced the buyer to.

Things most be getting very very tight for these boys.

If the EA sold the house on your behave then you would be liabile to commission based on a contract formed "by action". As he did not do this then there is no commission on the sale.
 
Read the small print on the EA's Ts&Cs.

If they're the same as those which I've seen before, they will claim a right to fees for any sale within a certain period. I think these Ts&Cs will also state that the seller has a duty to pass on anyone to the EA who directly contacts the seller and expresses an interest.

I'm 100% sure that EA's have put these contractual safeguards in place to stop people doing exactly what has happened in the OPs case.

There's lots of arguments for and against claims that the EA failed here, but I'd wonder how after 4-months as the sole agent, board up, place on myhome or whatever, it could be argued that the reason the friend knows the house is for sale is only because the OP told them? Surely if they friend was in the market for a house, they would have seen it advertised too - consitituting an introduction of sorts?
 
Another one for EA's, trying to claim commission on the sale of a house in which he didnt introduced the buyer to.
Click to expand...

That seems to be the point that you are missing. The OP would have to prove that the EA didn't introduce them. They would have to prove that a sign erected outside the property for 4 months and advertising over that period had no bearing on how the buyer came toy realise that the property was for sale.

Regarding Q1 I would say it returned by word of mouth. It would seem to me that your friend had their eye on the property for a while and saw a chance for a deal once it had come off the open market. They may have been openly discussing how they had managed to get themselves a bargain and the EA got wind of it. Just one scenario anyway.
 

To comment on these points. If the OP didnt receive a contract then he would not have these T&Cs, i dont not see how the EA can seek to rely on conditions he made no effort to bring to the OP attention.

Secondly, the friend approached him AFTER he took the house off the market when he was finished with the EA services. Why should the OP go back to the EA then and pass on this interest when he no longer employed his services.

I would pay advertising fees but not the commission. The EA cannot prove he was instrumental in bringing the house to the attention of the friend.
It is more reasonable to assume the friend knew about it through the friendship.
The EA obviously believes the friend made an affer to the OP, who accepted and then took the house off the market so as to avoid paying fees. Let the EA prove this.
 
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