Potential Commission Dispute?

by Readers Question

9:32 AM, 27th October 2020
About 4 weeks ago

Potential Commission Dispute?

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Potential Commission Dispute?

I am seeking some views as to whether I am likely to end up with a commission dispute when selling my house.

The circumstances are that I had my house marketed on a sole agency agreement with an estate agent from January to June. There was some interest, but no sale agreed.

I then marketed with another agent from July to the current time again on a sole agency basis. One buyer from this agent made an offer which I accepted.

Subsequently, an individual who saw the house with the first agent has made me, via the first agent, a much better offer which I would love to accept.

The second agent did not introduce this person and the person only ever saw the property through the first agent. During marketing with the second Agent, I de-instructed the first Agent.

So my concern is that if I cancel the purchase with the second agent and proceed with the buyer from the first agent is there a chance the second agent will be able to come after me a second lot of commission.

Any thoughts welcome.

Chris


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Comments

Hedley

10:41 AM, 27th October 2020
About 4 weeks ago

It will depend on the terms you agreed with the second agent, but I am fairly sure you would be liable for both commissions.

Ian Narbeth

10:42 AM, 27th October 2020
About 4 weeks ago

Chris
It depends on the terms of the retainer. There is a difference between sole agency and sole selling rights. Usually commission is payable only on once contracts have been exchanged but this needs to be checked. Depending on the likely commission if you end up liable for two commissions (it does happen!), and on the price differential it may be worth spending a few hundred pounds on legal advice before exchanging contracts. Contact me (Google my name) and I should be able to help.

Richard

10:44 AM, 27th October 2020
About 4 weeks ago

hi new here so learning my way around, in short if am not wrong the agents have a clouse written that if you have two agents then second agent will also be liable to get a commission. so if you accept the first agents offer you MAY have to give the second agent a commission as well . please check your agreement policy when you agreed with the second agent.

Smartermind

10:54 AM, 27th October 2020
About 4 weeks ago

A bird in the hand is worth two in the bush.

What are the chances that the day before you exchange, your preferred gazumper reduces his offer. Then you'll have two sets of commission and a bad offer.

paul kaye

11:14 AM, 27th October 2020
About 4 weeks ago

you do not need to accept any offer from your second agent.
What I would advise is to talk to both agents and ask that they share the commission between them,owing to the circumstances.)
It is best to try and agree this and be fair to both agents.
My feeling is they will share.

Chris Harris

12:52 PM, 27th October 2020
About 4 weeks ago

If the price uplift is significant then perhaps paying both agents would still leave you with more than the offer you first accepted?

Incidentally agents don't make offers, unless they are buying on their own account, they put forward offers from prospective buyers.

If the offer you accepted has not yet made significant progress through the process you maybe should consider whether it may fall out of bed on it own accord.

NEIL T

16:23 PM, 27th October 2020
About 4 weeks ago

I've said this before in response to other articles. For future reference, read through and delete any clause that you don't like in the agreement - I have never had a rejection. Give the agent a maximum of 6-weeks after that you are free to stay with the current agent or move on and try another.
But in this case, I would go for Paul Kaye's suggestion, although agents are not known for their 'sharing' generosity. That's why I no longer use them, except for valuations.

paul kaye

16:44 PM, 27th October 2020
About 4 weeks ago

I also agree with Neil T
I always delete any terms I do not like or agree with.
One in particular I enter my self is as follows.
" No commission is due from you,should I sell my property to family or any relations.
Or if I take it off the market.
I also have the right to increase the asking price at anytime.
I will give you an example,many years ago ,my property was not selling.
So to the dismay of my wife ,I put the price up,guess what it sold in weeks.
The buyer tried knocking me down and I agreed to £1000 reduction,little did they know I still got over 20k over the first price with the reduction.
Lesson learned,agents price it to sell ,so they get their commission asap,even if it means screwing you !!!!!!!!!!!!!!!


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