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Original poster

Gazunder and Clause

20 replies

inzywinsy · 15/04/2022 14:51

After hearing about the practice of Gazundering should I challenge a clause in the Estate Agent contract in the PAYMENT OF FEES CLAUSE that says: "If in the unlikely event you fail to complete, the full fee remains payable at the agreed terms."

Am I misunderstanding this? For example if a buyer agrees a sales price and then at the last minute gazunders and says no I want to offer x amount less instead and I refuse; does that mean the Estate Agent will still want the Fee?

OP posts:
LIZS · 15/04/2022 14:54

Or does that only apply if you exchange and fail to complete?

Original poster
inzywinsy · 15/04/2022 14:57

5.1 Our fees become due upon exchange of contracts. However, at our discretion it is acceptable to pay when you move, provided that you instruct your solicitors to pay us from the proceeds of sale on the day of completion.If in the unlikely event you fail to complete, the full fee remains payable at the agreed terms.
5.2 We will be entitled to claim from you any legal costs we incur in enforcing the terms of this agreement as a result of any non-payment of our fees.

That what is says

OP posts:
Original poster
inzywinsy · 15/04/2022 15:51

Does anyone understand what that means?

OP posts:
HettySunshine · 15/04/2022 15:54

Does that not mean that their fees only fall due once exchange has taken place?

The contracts become legally binding at that point so the chances of failing to complete are tiny.

TeaStory · 15/04/2022 15:59

It means if you Exchange but don’t Complete, their fee is still payable. Gazundering would have to occur before Exchange, so the scenario in your OP is irrelevant.

TeaStory · 15/04/2022 15:59

It’s really rare that people fail to Complete after Exchange.

Original poster
inzywinsy · 15/04/2022 16:11

Oh thank you I am reading through the terms and it is very heavily in their favour. Thanks for putting my mind a rest.

OP posts:
Original poster
inzywinsy · 15/04/2022 16:12

Out of interest would anyone challenge that clause?

OP posts:
Heronwatcher · 15/04/2022 16:26

No, that clause is in case you exchange contracts with a willing buyer but then you (the seller) back out before completion. It means that as well as paying the deposit to the buyer you’d have to pay estate agent fees as they would technically have done their job (found you a buyer). I think it’s fairly standard. Gazundering is irrelevant as this would have to happen before exchange (once the contract is signed, the price is fixed).

Thehobbit2013 · 15/04/2022 19:09

Also if the buyer did pull out after exchange then you would retain their 10% deposit. It is highly unusual for a sale not to complete after exchange.

Original poster
inzywinsy · 15/04/2022 20:39

Thank you Heronwatcher and the Closit.

OP posts:
Original poster
inzywinsy · 15/04/2022 20:40

Sorry I mean thehobbit

OP posts:
3beesinmybonnet · 15/04/2022 20:49

Isn't it gazumping? I thought a gazunder was a chamber pot as in it 'goes under' the bed.

Anyway hope you get it sorted OP.

Original poster
inzywinsy · 15/04/2022 21:00

Lol no unfortunately we have Gazundering now! Something else to stress us all out in the house moving process!

OP posts:
SeasonFinale · 15/04/2022 21:00

That is a standard clause. The estate agent raises their invoice upon exchange of completion and it is usual to give you solicitor to pay their invoice from the proceeds of sale of the property.

Original poster
inzywinsy · 15/04/2022 21:02

Seasonfinale

oh good this contract seems very airtight compared to other agent's terms. I don't want to make a mistake.

Are there any clauses people should not sign? Because I will challenge if I have to.

OP posts:
BuanoKubiamVej · 15/04/2022 21:11

Check what the lock-in is if they fail to sell, and what terms will apply if you decide to move to a different agent.

Different agents will have different numbers of weeks that they insist on being given the chance to sell after which you may choose to switch to another agent if they haven't found you a buyer. If that happens you need to be very careful that you understand what circumstances would trigger you being obliged to pay fees to both agents-that can cost you thousands if you aren't careful.

Original poster
inzywinsy · 15/04/2022 21:30

It is a long lock-in. How will I know who they have introduced to my property if I leave and go to another agent after time is up. They don't tell you all the people who come to view.

More concerning is a 10% withdrawal fee clause. Can they force you to accept a low ball offer?

OP posts:
BuanoKubiamVej · 15/04/2022 23:50

When we swapped agents we were given a list of the initials & surnames of the people they had introduced our property to, and if we had sold to any of them we would have had to pay 2 agent fees but we sold to someone else so all was fine.

I don't know about withdrawal fee clauses. 10% of what? What does the clause say?

TeaStory · 16/04/2022 10:46

@3beesinmybonnet

Isn't it gazumping? I thought a gazunder was a chamber pot as in it 'goes under' the bed.

Anyway hope you get it sorted OP.

Gazumping and gazundering are two different things.
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