Severing contract with an estate agent
Discussion
I'm looking for advice please.
I signed a contract with an estate agent on the 8th October 2018 to act as the sole seller of our house for 24 weeks. The house went on the market on the same day as we already had the pictures taken and the home report done.
Since the house has been listed, we have had multiple issues. See below:
- the house was listed incorrectly at first, now changed
- the house was not showing on rightmove unless you used the postcode. Now sorted
- the incorrect photos were used even though I explicitly gave them a list of the correct pictures to use
- When you go onto the estate agents website and you type in our village, no houses are listed. you have type the neighbouring town in for the house to be listed
- When you click to request the details or a viewing, I get an error message
- the maps shown on their website are "for development purposes only". This seems to indicate they have not paid a bill to Google
- The guy dealing with our house sale is non-existent. I cannot reach him on the phone as he is not in the office so I have spoken to 3 other people. In fairness, they have been relatively helpful and have tried to assist me however the latest person I spoke to told me there is no record of anyone being booked in to see our house...
So, what are my options here? I have zero confidence in the agency now and I would like to break the contract with them and move onto another agency. This is time sensitive as we have a home report that is only valid for a certain period of time after which it needs to be renewed.
I'm in Scotland if that matters
I signed a contract with an estate agent on the 8th October 2018 to act as the sole seller of our house for 24 weeks. The house went on the market on the same day as we already had the pictures taken and the home report done.
Since the house has been listed, we have had multiple issues. See below:
- the house was listed incorrectly at first, now changed
- the house was not showing on rightmove unless you used the postcode. Now sorted
- the incorrect photos were used even though I explicitly gave them a list of the correct pictures to use
- When you go onto the estate agents website and you type in our village, no houses are listed. you have type the neighbouring town in for the house to be listed
- When you click to request the details or a viewing, I get an error message
- the maps shown on their website are "for development purposes only". This seems to indicate they have not paid a bill to Google
- The guy dealing with our house sale is non-existent. I cannot reach him on the phone as he is not in the office so I have spoken to 3 other people. In fairness, they have been relatively helpful and have tried to assist me however the latest person I spoke to told me there is no record of anyone being booked in to see our house...
So, what are my options here? I have zero confidence in the agency now and I would like to break the contract with them and move onto another agency. This is time sensitive as we have a home report that is only valid for a certain period of time after which it needs to be renewed.
I'm in Scotland if that matters
Parents broke with their EA a few months back and moved to the one I suggested originally and have now sold. They emailed original EA termination and didn't get anything back.
Pretty sure they can only charge you commission if they introduce the buyer to you, if you get a second EA and they find a buyer then they get the commission.
Would need to check the contracts really
Pretty sure they can only charge you commission if they introduce the buyer to you, if you get a second EA and they find a buyer then they get the commission.
Would need to check the contracts really
danrc said:
I'm looking for advice please.
I signed a contract with an estate agent on the 8th October 2018 to act as the sole seller of our house for 24 weeks. The house went on the market on the same day as we already had the pictures taken and the home report done.
Since the house has been listed, we have had multiple issues. See below:
- the house was listed incorrectly at first, now changed
- the house was not showing on rightmove unless you used the postcode. Now sorted
- the incorrect photos were used even though I explicitly gave them a list of the correct pictures to use
- When you go onto the estate agents website and you type in our village, no houses are listed. you have type the neighbouring town in for the house to be listed
- When you click to request the details or a viewing, I get an error message
- the maps shown on their website are "for development purposes only". This seems to indicate they have not paid a bill to Google
- The guy dealing with our house sale is non-existent. I cannot reach him on the phone as he is not in the office so I have spoken to 3 other people. In fairness, they have been relatively helpful and have tried to assist me however the latest person I spoke to told me there is no record of anyone being booked in to see our house...
So, what are my options here? I have zero confidence in the agency now and I would like to break the contract with them and move onto another agency. This is time sensitive as we have a home report that is only valid for a certain period of time after which it needs to be renewed.
I'm in Scotland if that matters
What options does your contract give you?I signed a contract with an estate agent on the 8th October 2018 to act as the sole seller of our house for 24 weeks. The house went on the market on the same day as we already had the pictures taken and the home report done.
Since the house has been listed, we have had multiple issues. See below:
- the house was listed incorrectly at first, now changed
- the house was not showing on rightmove unless you used the postcode. Now sorted
- the incorrect photos were used even though I explicitly gave them a list of the correct pictures to use
- When you go onto the estate agents website and you type in our village, no houses are listed. you have type the neighbouring town in for the house to be listed
- When you click to request the details or a viewing, I get an error message
- the maps shown on their website are "for development purposes only". This seems to indicate they have not paid a bill to Google
- The guy dealing with our house sale is non-existent. I cannot reach him on the phone as he is not in the office so I have spoken to 3 other people. In fairness, they have been relatively helpful and have tried to assist me however the latest person I spoke to told me there is no record of anyone being booked in to see our house...
So, what are my options here? I have zero confidence in the agency now and I would like to break the contract with them and move onto another agency. This is time sensitive as we have a home report that is only valid for a certain period of time after which it needs to be renewed.
I'm in Scotland if that matters
Have they breached any of the contract terms, or not provided the contracted services?
You could argue that all of the issues that you mention amount to them failing to provide the contracted service but you may have a fight on your hands getting them to accept that, particularly as you are only in week 3 of the 24 week contract.
Also, I don't know if there are any particularities with Scottish law that you could explore. Good luck anyway.
The contract (with particulars removed) is given below:
Sole Selling Rights Agency
Agreement – Contract For Agency
Services:
This document confirms that you wish to instruct Estate Agency to act
as the selling agency in respect of the property detailed below, as the sole selling
rights agent for 24 weeks week(s) from the marketing commencement date.
Terms & Conditions: Please Read This Legal Document Thoroughly Before Signing:
Sole Selling Rights Agency Agreement:
You will be liable to pay our agreed commission to us, in addition to any other costs or charges
agreed, in each of the following circumstances-
1. If contracts for the sale of the property for which we have been retained on your behalf to
sell (the “Property”) are exchanged in the period during which we have sole selling rights,
even if the purchaser was not found by us but by another agent or by any other person,
including yourself; and/or
2. If contracts for the sale of the Property are exchanged after the expiry of the Sole Agency
Period (as defined below) to a purchaser who was either introduced to you during that
period, sourced by you or any other person during the term of this agreement, or a party
with whom we had negotiations about the Property during that period, then you will be
liable to pay us the agreed commission for a period of 12 months after the expiry of the
agreement.
Termination of sole selling rights -
You cannot serve notice to terminate our sole selling rights in respect of the Property for a period
of 24 weeks week(s) from the date of this agreement (the “Sole Agency Period”). Upon the
expiry of the Sole Agency Period you must provide us with a minimum of 28 days’ notice in
writing to terminate this agreement. If you are currently under contract for the sale of the
Property with another estate agency you hereby authorise us to serve notice on them to
terminate their agency agreement with you forthwith.
England, Wales & Northern Ireland Energy Performance Certificates (EPC):
To adhere to Part 5 of the Housing Act 2004, marketing may not commence on Property until we
are in possession of a valid EPC. Therefore, please treat any requests from the EPC Companies as
a matter of priority.
Scotland Home Reports:
To adhere to Part 5 of the Housing Act 2004, marketing may not commence on the Property until
we are in possession of a valid Home Report. Therefore, please treat any requests from the Home
Report Companies as a matter of priority.
The Consumer Protection from Unfair Trading Regulations 2008:
This act ensures that estate agents give potential purchasers accurate information about
properties being marketed. The information that you provide to us about the Property must be
true and accurate. Furthermore, you must notify us immediately of any changes to the
information originally provided. We also reserve the right not to publish any information provided
by you. In signing this agreement you warrant to us that the information that you have provided
to us in respect of the Property is true, accurate and complete and further indemnify us in
respect of any loss we sustain as a result of a breach of this provision.
Estate Agency Act 1979:
Under the above act we are obligated to disclose whether any person who has an interest in the
Property is an estate agent, a relative or associate of an estate agent.
The Consumer Contracts Regulations 2013:
These regulations replaced the Cancellation of Contracts Made in a Consumers Home or Place of
Work Regulations 2008. Under these new regulations the cancellation/cooling off period is 14
days from signature of this agreement. Cancellation must be made in writing and be received
within the 14-day time period. If a EPC or Home Report has been conducted within this period,
you are liable for this individual cost.
Severability
If any part of this agreement is declared unenforceable or invalid, the remainder will continue to
be valid and enforceable.
Payment of Accounts:
When payment of commission is due, settlement must be within seven days of completion of the
purchase of the Property. In the event of any account remaining unpaid for more than seven days
from such completion of the purchase of the Property, then we reserve the right to charge
interest on the balance at a rate of four percent above the National Westminster Bank plc base
rate. In entering into this agreement you irrevocably and unconditionally instruct any Solicitor
instructed in respect of the sale of the Property to pay our commission fee from the proceeds of
such sale and to provide your forwarding address to us should we request it.
Sole Selling Rights Agency
Agreement – Contract For Agency
Services:
This document confirms that you wish to instruct Estate Agency to act
as the selling agency in respect of the property detailed below, as the sole selling
rights agent for 24 weeks week(s) from the marketing commencement date.
Terms & Conditions: Please Read This Legal Document Thoroughly Before Signing:
Sole Selling Rights Agency Agreement:
You will be liable to pay our agreed commission to us, in addition to any other costs or charges
agreed, in each of the following circumstances-
1. If contracts for the sale of the property for which we have been retained on your behalf to
sell (the “Property”) are exchanged in the period during which we have sole selling rights,
even if the purchaser was not found by us but by another agent or by any other person,
including yourself; and/or
2. If contracts for the sale of the Property are exchanged after the expiry of the Sole Agency
Period (as defined below) to a purchaser who was either introduced to you during that
period, sourced by you or any other person during the term of this agreement, or a party
with whom we had negotiations about the Property during that period, then you will be
liable to pay us the agreed commission for a period of 12 months after the expiry of the
agreement.
Termination of sole selling rights -
You cannot serve notice to terminate our sole selling rights in respect of the Property for a period
of 24 weeks week(s) from the date of this agreement (the “Sole Agency Period”). Upon the
expiry of the Sole Agency Period you must provide us with a minimum of 28 days’ notice in
writing to terminate this agreement. If you are currently under contract for the sale of the
Property with another estate agency you hereby authorise us to serve notice on them to
terminate their agency agreement with you forthwith.
England, Wales & Northern Ireland Energy Performance Certificates (EPC):
To adhere to Part 5 of the Housing Act 2004, marketing may not commence on Property until we
are in possession of a valid EPC. Therefore, please treat any requests from the EPC Companies as
a matter of priority.
Scotland Home Reports:
To adhere to Part 5 of the Housing Act 2004, marketing may not commence on the Property until
we are in possession of a valid Home Report. Therefore, please treat any requests from the Home
Report Companies as a matter of priority.
The Consumer Protection from Unfair Trading Regulations 2008:
This act ensures that estate agents give potential purchasers accurate information about
properties being marketed. The information that you provide to us about the Property must be
true and accurate. Furthermore, you must notify us immediately of any changes to the
information originally provided. We also reserve the right not to publish any information provided
by you. In signing this agreement you warrant to us that the information that you have provided
to us in respect of the Property is true, accurate and complete and further indemnify us in
respect of any loss we sustain as a result of a breach of this provision.
Estate Agency Act 1979:
Under the above act we are obligated to disclose whether any person who has an interest in the
Property is an estate agent, a relative or associate of an estate agent.
The Consumer Contracts Regulations 2013:
These regulations replaced the Cancellation of Contracts Made in a Consumers Home or Place of
Work Regulations 2008. Under these new regulations the cancellation/cooling off period is 14
days from signature of this agreement. Cancellation must be made in writing and be received
within the 14-day time period. If a EPC or Home Report has been conducted within this period,
you are liable for this individual cost.
Severability
If any part of this agreement is declared unenforceable or invalid, the remainder will continue to
be valid and enforceable.
Payment of Accounts:
When payment of commission is due, settlement must be within seven days of completion of the
purchase of the Property. In the event of any account remaining unpaid for more than seven days
from such completion of the purchase of the Property, then we reserve the right to charge
interest on the balance at a rate of four percent above the National Westminster Bank plc base
rate. In entering into this agreement you irrevocably and unconditionally instruct any Solicitor
instructed in respect of the sale of the Property to pay our commission fee from the proceeds of
such sale and to provide your forwarding address to us should we request it.
Blue62 said:
If they have spent money on producing a brochure and advertising then they will probably expect you to reimburse them and obviously if they've introduced someone who subsequently buys your home they will expect the fee.
The contract actually says that they will expect the fee even if the vendor, or someone else, introduces the property.1. If contracts for the sale of the property for which we have been retained on your behalf to
sell (the “Property”) are exchanged in the period during which we have sole selling rights,
even if the purchaser was not found by us but by another agent or by any other person,
including yourself; and/or
In clause 2, the same goes if exchange happens after the contract period.
It looks like you will need to get them to agree to rescind the contract but it may be difficult as you have signed a contract that, prima facie, suggests that they needn't do anything at all for you, not even marketting the property. It isn't in the contract that you signed and agreed to.
I think some local, on the ground legal advice would stand you well here rather than a forum, have you got a solicitor for the conveyancing, if so I would approach them assuming the agent isn't arranging it as well.
I'm in Scotland and there are 2 properties local to me which are being marketed by 2 different companies so that must indicate something even if it was pre-agreed in their contract.
It is a tactic by less scrupulous agents for there to be someone apparently interested in a property and never show just beware of that as well.
We have bought and sold a fair bit using a variety of methods and agents. The worst trick I ever saw was an agent saying that we had several interested parties when we only had one and then said one pulled out because of xyz which it turn made the only parties offer much more appealing. Anyway that agent was stupid enough to discuss it whilst I was in their office and they didn't realise I was there!! That was just before the crash in 2008 I should have taken that offer which came in after a week of going to market, the house then sat for a year and I took a hit!!
I'm in Scotland and there are 2 properties local to me which are being marketed by 2 different companies so that must indicate something even if it was pre-agreed in their contract.
It is a tactic by less scrupulous agents for there to be someone apparently interested in a property and never show just beware of that as well.
We have bought and sold a fair bit using a variety of methods and agents. The worst trick I ever saw was an agent saying that we had several interested parties when we only had one and then said one pulled out because of xyz which it turn made the only parties offer much more appealing. Anyway that agent was stupid enough to discuss it whilst I was in their office and they didn't realise I was there!! That was just before the crash in 2008 I should have taken that offer which came in after a week of going to market, the house then sat for a year and I took a hit!!
henrycrun said:
danrc said:
First time seller, never done this before and seems to be the norm with the 7 other estate agents we spoke to. What is "normal"?
We were given a 2 week rolling contract. If EA failed to keep us happy we could go, no problem.House was sold STC in 3 weeks.
danrc said:
nealeh1875 said:
6 month sole agency is crazy. what made you sign that!?
First time seller, never done this before and seems to be the norm with the 7 other estate agents we spoke to. What is "normal"?I used to be a EA in Birmingham, ours was usually 12 weeks but we could always change that if negotiated, was never fixed from above.. If you're with a good agent (doesn't sound like you are) with a good house, it will sell within 2 weeks. 4 tops if reduced.
6 month sole agency is making sure you can't go anywhere, unless you complain to their head office? are they part of a bigger group? connels/countrywide etc? They'd rather keep you happy and leave quietly than have a bad review
danrc said:
I'm looking for advice please.
I signed a contract with an estate agent on the 8th October 2018 to act as the sole seller of our house for 24 weeks. The house went on the market on the same day as we already had the pictures taken and the home report done.
Since the house has been listed, we have had multiple issues. See below:
- the house was listed incorrectly at first, now changed
- the house was not showing on rightmove unless you used the postcode. Now sorted
- the incorrect photos were used even though I explicitly gave them a list of the correct pictures to use
- When you go onto the estate agents website and you type in our village, no houses are listed. you have type the neighbouring town in for the house to be listed
- When you click to request the details or a viewing, I get an error message
- the maps shown on their website are "for development purposes only". This seems to indicate they have not paid a bill to Google
- The guy dealing with our house sale is non-existent. I cannot reach him on the phone as he is not in the office so I have spoken to 3 other people. In fairness, they have been relatively helpful and have tried to assist me however the latest person I spoke to told me there is no record of anyone being booked in to see our house...
So, what are my options here? I have zero confidence in the agency now and I would like to break the contract with them and move onto another agency. This is time sensitive as we have a home report that is only valid for a certain period of time after which it needs to be renewed.
I'm in Scotland if that matters
Had teh exact same thing last year with a Estate Agent, except I signed a contract with an estate agent on the 8th October 2018 to act as the sole seller of our house for 24 weeks. The house went on the market on the same day as we already had the pictures taken and the home report done.
Since the house has been listed, we have had multiple issues. See below:
- the house was listed incorrectly at first, now changed
- the house was not showing on rightmove unless you used the postcode. Now sorted
- the incorrect photos were used even though I explicitly gave them a list of the correct pictures to use
- When you go onto the estate agents website and you type in our village, no houses are listed. you have type the neighbouring town in for the house to be listed
- When you click to request the details or a viewing, I get an error message
- the maps shown on their website are "for development purposes only". This seems to indicate they have not paid a bill to Google
- The guy dealing with our house sale is non-existent. I cannot reach him on the phone as he is not in the office so I have spoken to 3 other people. In fairness, they have been relatively helpful and have tried to assist me however the latest person I spoke to told me there is no record of anyone being booked in to see our house...
So, what are my options here? I have zero confidence in the agency now and I would like to break the contract with them and move onto another agency. This is time sensitive as we have a home report that is only valid for a certain period of time after which it needs to be renewed.
I'm in Scotland if that matters
Property listed then removed, photos taken were crap chased to be listed twice, no response,
we then complained to Head Office saying we were terminating on the above basis.
They did not fight it but advised not there fault.
If you are not happy write to HO with a timeline saying you have lost faith in them as agent and therefore are terminating the contract.
I am an agent, if I were you I would write to the senior partner explaining why you are terminating the contract. English law may be different but there is recent case law that agents don't like getting out, it says an agent only gets paid if they have conducted and concluded the sale; justhaving a contract is not enough any more.
Let them know you will pay a reasonable amount for floorplans and pictures and that you require use of them, make it clear you will be using another agent and will not expect to pay them as they have not produced any viewers.
My only caveat to this is price, if the house is on the market at too much money and you have insisted on "giving it a try" at an inflated price then I wouldn't be amazed at no viewings
Let them know you will pay a reasonable amount for floorplans and pictures and that you require use of them, make it clear you will be using another agent and will not expect to pay them as they have not produced any viewers.
My only caveat to this is price, if the house is on the market at too much money and you have insisted on "giving it a try" at an inflated price then I wouldn't be amazed at no viewings
danrc said:
That is the contract in its entirety.
They have the house advertised on a number of websites including rightmove but they have not produced a printed brochure or anything like that.
Only 1 person has shown interest in the house so far and they failed to turn up.
If their service provision is as poor as you state, it is possible that the 'potential' buyer never existed in the first place, merely a carrot to let you think they were on their game !!! (or maybe its me being sceptical about EA's honesty)They have the house advertised on a number of websites including rightmove but they have not produced a printed brochure or anything like that.
Only 1 person has shown interest in the house so far and they failed to turn up.
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