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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

If you back out of a house sale, do you still have to pay estate agent fee

43 replies

Mooshamoo · 03/07/2023 00:09

Hi I put my house up for sale.

I got an offer on it and accepted it. I haven't signed anything yet
For various reasons I'm considering backing out of sale, and taking house of market altogether.

My question is do I still have to pay the estate agent his fee.

I paid him 350 marketing fee upfront.

And I'm meant to pay him 2000 euro flat fee after house sells. I did ask him was it no sale no fee , and he sent an email confirming no sale no fee.

However I'm worried now that "no sale no fee " could mean if he fails sell the house. But could be argue in my case, that he did sell the house (received an offer) and I backed out. The estate agent gave me a massive legal document about the sale full of terms and conditions, and I'm trying to look through the small print.

If any of you took your house off the market did you have to pay the estate agent the full fee?
Or not? Thanks . As I'm worrying about this tonight

OP posts:
Psiaspops · 03/07/2023 06:44

PrincessofWellies · 03/07/2023 01:28

Even with a ready willing and able clause it's not cut and dried you would be liable for the full fee. The contract has to be read in conjunction with consumer law, but I'm afraid I'm unfamiliar with the law in Ireland. However it is part of the EU and I believe the EU do have unfair contract terms law enshrined in their legislation. Have a look on Bailii which includes Irelands legislation and search under Ireland, unfair contract terms. If it's along the lines of EU I believe they are able to charge costs to date plus an uplift for work done but that is all.

Yeah I was asking about the ready willing and able clause as usually in Ireland, if there is one, you pay half the commission fee. But it does all depend on each Estate Agent, as some will charge it and some won't, even if it's in the contract. Best thing to do really is give them a ring first thing this morning and find out

WonderingWanda · 03/07/2023 07:00

Ours is based on the final sale fee. Estate agents fees are always due on completion of the sale. So I would assume if the sale doesn't go through because one party pulls out then then no fee. Your estate agent found you a buyer but the sale has not completed.

topnoddy · 03/07/2023 07:26

UK mainland it's a percentage of the sale price , no upfront fees .

So no sale no fees , not sure what happens if you decide to take the house off the market before the agreed time period with the EA though

jc12689 · 03/07/2023 08:40

topnoddy · 03/07/2023 07:26

UK mainland it's a percentage of the sale price , no upfront fees .

So no sale no fees , not sure what happens if you decide to take the house off the market before the agreed time period with the EA though

Not necessarily. There are plenty of estate agents in the UK that have a fixed charge.

caringcarer · 03/07/2023 09:13

Why don't you just ring the EA and ask?

towriteyoumustlive · 03/07/2023 09:17

You will find that the contract will say something along the lines of "finding a proceedable buyer" which means that you will have to pay.

The easiest way to resolve this is to phone up the estate agent and ask them about the fees if you pull out then ask them which specific bit in the contract clarifies this.

The "no sale no fee" bit is probably for the buyer dropping out.

But... the way round this is not to take the house off the market. Just keep it on and tell the EA you haven't found anything else suitable. Eventually the buyer will get bored of waiting and pull out the sale meaning no proceedable buyer so no fee.

Luxell934 · 03/07/2023 09:23

Impossible to say without looking at your agreement. When we put ours up for sale, got 3 offers but then ultimately decided not to accept any we didn’t pay them anything. But I know some have agreements where you would have to pay if you got an offer.

jc12689 · 03/07/2023 11:23

The chances are you will need to cover any incurred EA costs but I doubt you have to pay the full commission.

daverday · 03/07/2023 12:16

When I backed out of a sale due to a change in circumstances, I had to pay the Estate Agent the fee I had agreed when I signed the initial agreement. It is probably in the 25 page agreement somewhere- I suggest you go look there.

ImpatienceOfASaint · 03/07/2023 12:20

In my experience of this, I didn’t have to pay the fee - I would think you wouldn’t be liable until contracts are exchanged, although of course each estate agent might have different clauses in their specific contracts

Thatwouldbeme · 03/07/2023 12:31

If your not sure and don't want to speak to the agent yourself, get a friend to phone enquiring about selling and there terms, this one especially.

Isis1981uk · 03/07/2023 12:37

We pulled out just before we exchanged as we decided to separate instead, but our estate agent was completely lovely and didn't charge us anything as he said that he preferred to create goodwill and that we'd remember him next time we decided to buy or sell. Our solicitor only charged us the minimum too.

bilbodog · 03/07/2023 12:39

In uk ive not known an agent charge the fee if you take your property off the market. Ive done it twice in the past for various reasons. They will want to have a good relationship with you so that if you do decide to sell in future you will go with them again,

Mumtothreegirlies · 03/07/2023 12:42

Not in the uk no. If you
paid for marketing up front then I’d be inclined to feel a little less guilty about backing out. My husband doesn’t charge marketing up front so loses money and time whenever someone changes their mind.

Talia99 · 03/07/2023 13:33

Mooshamoo · 03/07/2023 00:54

Okay I think I found the relevant part in the contract. It says : the fee is to be paid to the estate agent on completion of the contract.

So I think if I pull out before the contracts are signed, then I don't have to pay the EA

But what ‘contract’ are they referring to? You seem to be assuming this means ‘exchange of contracts’. It sounds more to me like they are talking about the completion of the contract between you and the estate agent. This may be exchange of contracts but I’ve seen it mean ‘the introduction of a proceedable buyer’ , i.e. if you are the one to pull out, you have to pay.

You need legal advice. I have no idea if there is statute law in Ireland covering this point. If there isn’t, it’s contract law and the terms of the contract that are relevant.

MrsPositivity1 · 03/07/2023 13:57

Yes, they sold the house for you but you pulled out

Mooshamoo · 03/07/2023 20:11

Talia99 · 03/07/2023 13:33

But what ‘contract’ are they referring to? You seem to be assuming this means ‘exchange of contracts’. It sounds more to me like they are talking about the completion of the contract between you and the estate agent. This may be exchange of contracts but I’ve seen it mean ‘the introduction of a proceedable buyer’ , i.e. if you are the one to pull out, you have to pay.

You need legal advice. I have no idea if there is statute law in Ireland covering this point. If there isn’t, it’s contract law and the terms of the contract that are relevant.

Hmm you say it might be the completion of contract between me and EA.

But I signed the contract a month ago ) that would be completion of contract wouldn't it) and he didn't charge me the fee.

Oh I'll have to ring and ask him. I just have a lot going on - I'm I'll, my mother is in hospital, this is just one more stress. I am wrecked tired this week.

OP posts:
Talia99 · 03/07/2023 20:32

Mooshamoo · 03/07/2023 20:11

Hmm you say it might be the completion of contract between me and EA.

But I signed the contract a month ago ) that would be completion of contract wouldn't it) and he didn't charge me the fee.

Oh I'll have to ring and ask him. I just have a lot going on - I'm I'll, my mother is in hospital, this is just one more stress. I am wrecked tired this week.

No, signing the contract would definitely not be completing the contract, it would be creating a contractual agreement. Completing the contract (at least in the UK) would be when the requirements of the contract are met, i.e. when all the requirements are carried out (legal meaning of completion is fulfilling rather than the everyday meaning of filling in).

Completing the contract might require a completed sale, it might require the estate agent to introduce a proceedable buyer. It might require the estate agent to personally buy your house if it doesn’t sell (almost definitely not the last). You’d need to read the terms of the contract itself.

Equally, I have no idea whatsoever if there are any laws (statutes) in Ireland that govern what can go in an estate agent contract. There might be.

You can ask the estate agent. If he says no charge, great. If he says you owe him the money, at that point you might need to speak to a lawyer. There’s an old saying - never take legal advice from your opponent.

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