AIBU to not pay this Estate Agent a fee?

[tigerbear]

I'll try to explain as clearly and briefly as possible:

• I made an offer an a house without mine being on the market yet, so relayed to the agent that I'd understand if the vendor didn't accept my offer until I had mine on market (this agent told me what their fees would be - 1.5% - to go on market with them. I said in an email that their fees were too high, and I'd be looking to instruct an online agent who charge flat fee of £1200
• Agent called the next day to say that the vendor had come up with a solution - that they would buy my flat to let out as an investment, effectively making the whole process chain free and allow us both to progress immediately. I was obviously delighted but at that point was trying to get my head round the whole thing (my 5 year old DD had also been diagnosed with Strep-A that day too and I was a bit stressed). I asked the agent what would happen with fees and he said they'd charge me 1% instead of 1.5. At this point I did think it was a bit cheeky and too much, but didn't query it
• Since then, I did the photos and property information myself to email to the buyer, I showed it to them when they came to view. At this point I realised that the EA would pretty much be charging me a fee for doing nothing, so he'd be asking for £4,800. So I told the buyer to contact me direct if he wanted to make an offer, which he did, and we agreed on a price.
• I've emailed the EA to say I don't think he's done anything to warrant a fee of £4,800, considering he's never set foot in my flat, hasn't marketed it, hasn't done photos or floor plans. He'd be benefiting purely by circumstance, and is obviously already making a fee on his commission of selling their house to me, and will also benefit by being the letting agent of my flat, when mines sold as a buy to let.

Hope that all makes sense: in short, my property has never been on the market with him and I've never signed a contract. AIBU to pay him nothing?

He's now asking for a compromise of £1,000 plus VAT, since I told him he's done nothing to warrant a fee.

Judy -

Don't pay the EA a single penny. No contract - no fee.

Actually, you probably don't need to reply to that email at all. Assuming the vendor is fully on board, it sounds like the transaction will go ahead even if the EA doesn't lift another finger. I'd suggest you just swop solicitor details direct with the vendor and get on with things.

I wouldn't be so sure. The estate agent has offered a compromise at the moment, I imagine because he knows a) he hasn't done a great deal to earn his commission and b) he'll be getting the commission on the sale of the house you're buying which, if the seller wants to buy your property as a buy to let, I'm guessing is a more expensive house than the one he's selling. If you try to organise a private sale with the vendor, the vendor will be in breach of contract. The estate agent could effectively sue him, meaning he'd almost certainly pull out to prevent that. You could lose both your buyer and the house you want to buy - and end up paying a different estate agent more money to sell yours.

Personally I'd shell out £1200 and save myself the hassle.

The vendor's contract is for the sale of his house. He has no contract with the EA that has anything to do with the purchase of OP's house, so he couldn't be in breach of any contract if he deals with that purchase privately.

I guess the one danger may be that EA will try extra hard to find another purchaser for the vendor's house so as to knock OP out of the question completely, but that's a risk OP was prepared to take from the start.

Judy - yes, the contract is for the sale of his house. What some people seem to be suggesting is that now OP has his contact details the whole thing could be done as private sales, cutting the estate agent out altogether.

If what you're actually saying is 'buy the house through the agent but sell yours without paying an introduction fee', I think OP has a much clearer case. It wouldn't be unreasonable to say 'Thank you for offering to act for me; however, I've decided to sell privately. Your client will pay you a fee for finding me as a buyer as per standard procedure'.

Tatertots - no, we're not proposing to cut the EA out completely. The buyer of mine is also the vendor of the one I'm buying, so of course they should pay the EA, as the EA found a buyer for them - me.

The house I'm buying is more than the flat I'm selling, so the EA will make a commission on the house of £10,600.

If he's making that sort of commission he won't want to lose a buyer. Stand your ground and tell him he's acting for the vendor, not you.