Terminating Estate Agent Contract - Where do I stand
Discussion
I have a contract query about the terms of cancellation in my agreement with an Estate Agent who's been selling my house.
We've decided to take our house off the market, as the property we wanted to buy has been sold and we've decided to stay where we are. The minimum term of the contract ends on 19/12/19 and the contract states we must give them 14 days notice.
We served notice on the 2nd December so assumed that the contract would come to an end on the 19th December. The agency say that the 19th is the earliest we can give them notice so the contract ends on 2nd January.
We've decided to take our house off the market, as the property we wanted to buy has been sold and we've decided to stay where we are. The minimum term of the contract ends on 19/12/19 and the contract states we must give them 14 days notice.
We served notice on the 2nd December so assumed that the contract would come to an end on the 19th December. The agency say that the 19th is the earliest we can give them notice so the contract ends on 2nd January.
Contract Says said:
The minimum term of this agreement is set at 3 months from the date of initial marketing. It will continue after the minimum term unless or until terminated by either party. Termination can be effected by either party giving 14 days written notice, subject to the agreed minimum period.
This is largely academic as we have no intention of re-listing the house with another agent in the foreseeable future, however I'd be interested to know which of us is correct so I can be better informed next time we think of selling.Don't really see the problem.
You have no costs either way. It's not like you are forced to take viewings or do anything else.
if you are not going elsewhere either what does it matter?
However as you want to know for future purposes, it really depend on the exact wording of the contract. If the minimum term is x, then you should be able to give notice on x-14days, that you do not intend to extend the contract. Otherwise the minimum term is x+14days not x. The devil however is in the exact wording.
You have no costs either way. It's not like you are forced to take viewings or do anything else.
if you are not going elsewhere either what does it matter?
However as you want to know for future purposes, it really depend on the exact wording of the contract. If the minimum term is x, then you should be able to give notice on x-14days, that you do not intend to extend the contract. Otherwise the minimum term is x+14days not x. The devil however is in the exact wording.
Edited by GT03ROB on Friday 6th December 09:15
GT03ROB said:
Don't really see the problem.
You have no costs either way. It's not like you are forced to take viewings or do anything else.
if you are not going elsewhere either what does it matter?
This^ You have no costs either way. It's not like you are forced to take viewings or do anything else.
if you are not going elsewhere either what does it matter?
The contract is quite clear - you signed up to a minimum of three months with 14 days notice to quit thereafter. Being pedantic, had you served notice on the 6 December (today) the contract would have ended on the 20 Dec but you served notice to quit within their minimum 3 months. It would only become an issue for you if someone knocks on your door on boxing day and makes a cash offer to buy your house when you are still contracted to the agent!! Did you have to do it in writing? When we took our house off the market last year the "contract" was terminated by mutual consent.
Edited by Beggarall on Friday 6th December 08:45
Beggarall said:
GT03ROB said:
Don't really see the problem.
You have no costs either way. It's not like you are forced to take viewings or do anything else.
if you are not going elsewhere either what does it matter?
This^ You have no costs either way. It's not like you are forced to take viewings or do anything else.
if you are not going elsewhere either what does it matter?
The contract is quite clear - you signed up to a minimum of three months with 14 days notice to quit thereafter. Being pedantic, had you served notice on the 6 December (today) the contract would have ended on the 20 Dec but you served notice to quit within their minimum 3 months. It would only become an issue for you if someone knocks on your door on boxing day and makes a cash offer to buy your house when you are still contracted to the agent!! Did you have to do it in writing? When we took our house off the market last year the "contract" was terminated by mutual consent.
Edited by Beggarall on Friday 6th December 08:45
The OP said....
This is largely academic as we have no intention of re-listing the house with another agent in the foreseeable future, however I'd be interested to know which of us is correct so I can be better informed next time we think of selling.
I am no expert but I disagree with Beggarall above. The contract says there is a minimum period of 3 months, the only way of having it last for 3 months (only) is to serve notice before the contract has expired and (imho) there is nothing there that says notice cannot be served at any time (ie within the 3 months), only that the min period for the contract is 3 months. So, as far as I am concerned, you could have served notice on day 1 of the contract.
The "subject to the agreed minimum period." refers to when "Termination can be effected", not the "giving 14 days notice" part of the sentence.
I think the estate agent would have a hard job arguing otherwise in court but then I am not a lawyer
OP. the easy solution in the future is to ask the estate agent before you sign the contract.....
@brman thanks for reading the full post
Just to clarify, I'm not being kept up at night worrying about this. We aren't selling the house, so it doesn't matter if the contract finishes in December or January.
However, I was shocked when the agent told me I couldn't serve notice prior to the minimum period as it went against my understanding of what was written in the contract. I was curious if people with a legal background would see things differently.
I've included the exact wording from the contract in the OP if anyone is interested.
It seems that others see things the same way as I do. Lesson for the future: confirm the process for termination before the contract is signed.
Just to clarify, I'm not being kept up at night worrying about this. We aren't selling the house, so it doesn't matter if the contract finishes in December or January.
However, I was shocked when the agent told me I couldn't serve notice prior to the minimum period as it went against my understanding of what was written in the contract. I was curious if people with a legal background would see things differently.
I've included the exact wording from the contract in the OP if anyone is interested.
It seems that others see things the same way as I do. Lesson for the future: confirm the process for termination before the contract is signed.
I was involved in a very similar disagreement with an estate agent last year. I did the same as the OP - gave notice to terminate the contract so that it would run only to the end of the minimum period
The branch manager insisted the notice would apply from the end of the 3 months but I explained to him that the wording of the contract did not say that, and that there was no condition setting the earliest date at which notice could be given.
He passed it to the company's Compliance Dept, who disagreed with me of course, but could not actually explain in detail how the wording supported the company's interpretation. I think the manager had more faith in my ability though, and gave in!
It is a little academic if you are not selling anyway, but not a good way for the agent to encourage you to return to them if/when you do.
I subsequently appointed another agent who was totally different; their contract was brief and to the point and if there was anything I didn't like, the manager crossed it out. I took the house off the market following a near-fatal health issue and when I rang him, he wished me well and terminated the contract immediately.
The branch manager insisted the notice would apply from the end of the 3 months but I explained to him that the wording of the contract did not say that, and that there was no condition setting the earliest date at which notice could be given.
He passed it to the company's Compliance Dept, who disagreed with me of course, but could not actually explain in detail how the wording supported the company's interpretation. I think the manager had more faith in my ability though, and gave in!
It is a little academic if you are not selling anyway, but not a good way for the agent to encourage you to return to them if/when you do.
I subsequently appointed another agent who was totally different; their contract was brief and to the point and if there was anything I didn't like, the manager crossed it out. I took the house off the market following a near-fatal health issue and when I rang him, he wished me well and terminated the contract immediately.
OP, you are right and the agency is wrong. You can give notice to terminate the contract at the end of the minimum three months. The Agency's argument is re-writing the contract to make the minimum term three months and fourteen days.
There is not usually much magic involved in interpreting a contract. You just give words their ordinary meaning, in context.
There is not usually much magic involved in interpreting a contract. You just give words their ordinary meaning, in context.
Beggarall said:
Breadvan72 said:
is incorrect.
Thank you Mr BV for your interjection. As a pupil at the feet of the master perhaps you would be kind enough to explain my error? I am surprised this thread has extended so far but maybe there is an interesting learning point here. 
Beggarall said:
Breadvan72 said:
is incorrect.
Thank you Mr BV for your interjection. As a pupil at the feet of the master perhaps you would be kind enough to explain my error? I am surprised this thread has extended so far but maybe there is an interesting learning point here. Minimum contract term is three months
There give notice at any time but no later than 14 days prior and the three months minimum term stands
In your interpretation the minimum term would be three months and 14 days and that is not what is stated
Bear in mind that the OP has described the contract to us but that we have not seen its precise wording. The question is whether the notice to terminate can be given during the minimum term, or can be given only from the end of that term. On the description given by the OP, it appears that notice can be given during the minimum term, to end no sooner than the end of that term.
elanfan said:
“As a pupil at the feet of the master”
Think it’s safe to say he already knows.
I am not always quite as arrogant, unpleasant and snarky as I pretend to be when posting here*. I am very open to offering assistance to people who are interested in stuff that I have experience of. I am not always right, and can sometimes be stubbornly wrong, but, unlike many on the internet I do sometimes admit to being wrong. I might be wrong on this one, but at present I do not think that I am. Think it’s safe to say he already knows.
*In real life I am very snarky, often scornful, and tend to be quite confident, but I try not to be quite as boomy as I am on the net. BV72 does not exist - he is a name on a screen. I may be quite good at teaching - all but one of my many pupils have taken silk (unlike me!). The stray one might take silk next year, if she CBA.
The EA isn’t doing himself any favours here , if he had anything about him he’d take it off the market immediately and ask to be first in line when the op decides to put it up for sale again.
To be fair if he hadn’t sold it by now , adding another couple of weeks at this time of year is almost pointless, regardless if the op had decided to stay put anyway.
To be fair if he hadn’t sold it by now , adding another couple of weeks at this time of year is almost pointless, regardless if the op had decided to stay put anyway.
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