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Original poster

Urgent help please!! EA wants to charge £6k!!

72 replies

HolidayHun2020 · 20/06/2023 21:09

Hello, so after months of searching we’ve had an offer accepted on our dream property. The Estate agent has asked for an exclusivity fee (£6k) otherwise they keep marketing the property and accepting viewings. Not sure if it’s a case of - we don’t pay it and then technically we no longer ‘have’ the property as all the paper work came through this evening on email so haven’t had a chance to ask yet. They’ve sent over the contract and if we pull out for any reason other then a RICS appointed mortgage valuation comes back low we lose the £6k - assuming this would be an independent one and not the person the bank sends round?! The money is also held in the EA bank account which feels odd.

There is a clause that says if we do not exchange contracts within the exclusivity period (50 working days) then we forfeit £6k

If we do not pay for searches within 7 days of the sales letter being sent out - we forfeit the £6k.

Has anyone experienced this before? We asked a friend of a friend and she said it is technically allowed but unethical. I now don’t know whether to proceed with this property as it makes me really uneasy - it was slightly over budget anyway so if the surgery threw up anything really bad it could be a disaster!!

There is nothing in the contract which says how the money will in theory be taken off of the sale.

OP posts:
rainingsnoring · 20/06/2023 23:02

Absolutely no chance I would agree to that. Please don't give them any of your money. You get nothing in exchange from them or the sellers.

Email them and tell them that you do not agree to their contract/fee. You are not their clients and will not be paying their fee. Ask them to let you know whether they would like to progress with this sale or not.

Seaitoverthere · 21/06/2023 06:49

I’m not opposed to the system being overhauled and paying a deposit at the start but not whilst the rest of the system is as it is currently as too many things outside your control. It took 10 weeks to exchange on our purchase recently (one property with no chain)whereas it was 9.5 weeks to complete last autumn on a split chain with 4 properties. Same solicitor, just depends on other things.

C4tastrophe · 21/06/2023 07:04

In my search area, there’s a house which went SSTC at 440, then back on at 425, 400, now 375 with a 6k ‘retention’.
I can’t see it helping.

Shahira78 · 21/06/2023 07:45

The people above us in our chain have the same agreement and are desperate to complete by tomorrow as they too have paid this £6k. We are doing everything we can (very stressful) to help them complete but theres only so much pushing we can do on our side and to be hoest, it's out of our hands. This type of agreement not only stresses the buyer out, but everyone else in the chain. Don't do it, for everyone's sake!

DrySherry · 21/06/2023 07:51

You would be nuts to go along with that in the current market.

forfortiessake · 21/06/2023 07:53

They probably put this in to stop people dropping out or dropping their offer last minute. I've heard so many horrible stories of buyers doing this (not saying you would OP) and I'm not sure why it is allowed in this country as it wastes so many people's time and money.

skyblueblue · 21/06/2023 07:58

Depending on the popularity of the area/house.

Sought-after area/dream house, maybe worth it.

Buyer's market - not worth it

Mischance · 21/06/2023 08:04

It's a scam - it is mega-dodgy. Talk to your local trading standards and get their advice.

I have bought and sold many times in my life and have never been subjected to this sort of extortion. If a seller agrees to take a property off the market in response to an offer, then that is their choice (they can equally choose not to take it off) - the estate agent must follow their instructions and should not be trying to profit from this situation. The estate agent cannot choose whether it stays on the market - he is under instruction from his clients.

Shahira78 · 21/06/2023 08:06

This reply has been withdrawn

This message has been withdrawn at the poster's request

ActDottie · 21/06/2023 08:11

That would piss me off enough to walk away even if I loved the house.

We walked away from “a dream house” because it was the owner who showed us round and it was clear he just wanted to show off the house and was going to take the highest offer. The thought of going to bids and the vibe I got from the owner put me off.

Buying a house is stressful! So I’d do everything I could to make the process smoother.

NotSorry · 21/06/2023 08:27

ActDottie · 21/06/2023 08:11

That would piss me off enough to walk away even if I loved the house.

We walked away from “a dream house” because it was the owner who showed us round and it was clear he just wanted to show off the house and was going to take the highest offer. The thought of going to bids and the vibe I got from the owner put me off.

Buying a house is stressful! So I’d do everything I could to make the process smoother.

I’m going back over 20 years now, but we had a similar experience. We were shown around a house and then the owner said that we could buy it but other people were also buying and the first person to exchange would get it. We walked away too. OP I’d walk away from this.

Els1e · 21/06/2023 08:36

It would be a firm no from me.

JaukiVexnoydi · 21/06/2023 08:46

Is the local market bouyant with plenty of other potential buyers out there? I got the impression that it's all quite sluggish in most places and they are in no position to impose such an unfair clause.

Send something like the following to the EA. Print out a paper copy and drop it through the letter box for the vendors with an FYI at the top, in case the agents aren't sharing all information with them.

"Further to our recent communication, we have made a bona fide offer of (£xxx,xxx) for (property address) and we stand by that offer and are as keen as you are to ensure the sale goes through. Your suggestion that if we don't agree to a £6000 exclusivity fee you will keep marketing the property to other potential buyers is totally unreasonable and we will not do business under such conditions.

If our offer is accepted we will of course be instructing solicitors and surveyors to carry out their tasks in this process, as soon as the property is no longer being actively marketed and is shown as "sold subject to contract". Our instructions to these professionals will obviously be incurring significant costs to us and those costs will be due to those professionals whatever happens, so we will not be placing those instructions until you confirm that our offer is accepted and that you will not be actively seeking someone to gazzump us and destroy the bona fide status of our offer and its acceptance.

We can only assure you that of course if the surveys and valuations come back without causing us concerns then the sale will go ahead. We will not sign a contract that gives you the power to decide on our behalf whether we have any concerns. In the unfortunate circumstance of this sale falling through we will already have lost significant sums from spending on surveys and searches and there is no need to load an additional draconian penalty on a decision which would already be costly enough."

KievLoverTwo · 21/06/2023 09:07

JaukiVexnoydi · 21/06/2023 08:46

Is the local market bouyant with plenty of other potential buyers out there? I got the impression that it's all quite sluggish in most places and they are in no position to impose such an unfair clause.

Send something like the following to the EA. Print out a paper copy and drop it through the letter box for the vendors with an FYI at the top, in case the agents aren't sharing all information with them.

"Further to our recent communication, we have made a bona fide offer of (£xxx,xxx) for (property address) and we stand by that offer and are as keen as you are to ensure the sale goes through. Your suggestion that if we don't agree to a £6000 exclusivity fee you will keep marketing the property to other potential buyers is totally unreasonable and we will not do business under such conditions.

If our offer is accepted we will of course be instructing solicitors and surveyors to carry out their tasks in this process, as soon as the property is no longer being actively marketed and is shown as "sold subject to contract". Our instructions to these professionals will obviously be incurring significant costs to us and those costs will be due to those professionals whatever happens, so we will not be placing those instructions until you confirm that our offer is accepted and that you will not be actively seeking someone to gazzump us and destroy the bona fide status of our offer and its acceptance.

We can only assure you that of course if the surveys and valuations come back without causing us concerns then the sale will go ahead. We will not sign a contract that gives you the power to decide on our behalf whether we have any concerns. In the unfortunate circumstance of this sale falling through we will already have lost significant sums from spending on surveys and searches and there is no need to load an additional draconian penalty on a decision which would already be costly enough."

I don't think the EA will do a thing off the back of this, but I agree OP should put a note through the vendors door, especially outlining the timeline is ridiculous in the current market. Maybe they will come to their senses and go with a normal EA when their contract expires.

40friedfish · 21/06/2023 09:11

Just say NO

Verite1 · 21/06/2023 09:16

I would also say no. If nothing else, the timeline is completely un achievable

senua · 21/06/2023 09:16

"Further to our recent communication, we have made a bona fide offer of (£xxx,xxx) for (property address) and we stand by that offer
DON'T SEND THIS!!
All offers should worded as 'subject to XYZ'

drpet49 · 21/06/2023 09:18

HolidayHun2020 · 20/06/2023 21:20

So yes, the biggest risk is not making the exchange timeframe which feels completely unrealistic as we are also selling!

Show quote history

You would be insane to enter into this dodgy agreeement with the estate agent. I would walk away

TimeFlysWhenYoureHavingRum · 21/06/2023 09:35

We bought our first home last year. We were moving from rental, the house we were buying was empty (previously rented but vacated without issue). Absolutely no chain whatsoever. It still took 4 months from offer accepted to exchange contracts (mainly because the sellers solicitor was slow to respond to anything!).
50 days to exchange is ridiculous! You should negotiate on that if nothing else.

TimeFlysWhenYoureHavingRum · 21/06/2023 09:38

Oh and the estate agent took it off the market as soon as we put in the offer - no additional fee.

Catspyjamas17 · 21/06/2023 09:38

Just refuse and proceed as you normally would. The offer has been accepted and you don't have to agree to the exclusivity agreement.

fromdownwest · 21/06/2023 09:39

50 days from accepting the offer to exchange is not as long as it sounds.
Any issues with finances etc
Searches are taking quite a while to come back.
Chains fall through, escpecially at the minute, with lenders being very stric with lending.

The EA gets paid by the seller, and anything else is plain greed. I would pop a letter through the door saying of the house, that you have paid the full asking price, but are unwilling to pay the £6k 'ransom'.

greenacrylicpaint · 21/06/2023 09:44

ZiriForEver · 20/06/2023 21:37

Elsewhere in EU, it is a standard here to pay this kind of deposit (different to the mortgage deposit). A proper way to do it is a three sides agreement, so there is a specific responsibility of the seller as well (to proceed with all steps in a timely fashion, not sell anyone else, ..)

If you don't see the timeline as realistic, don't agree with it.

elsewhere in EU the sale is already binding with the offer...

SideWonder · 21/06/2023 09:44

I've been in this situation. I laughed politely, said that I didn't think my solicitor would advise this was wise, ad walked away.

The EA came back to me about 3 months later saying the property had come back on the market & was I interested? But I had bought what turned out to be a much nicer property a month earlier. With no dodgy "fee" for accepting my offer, fee to be paid before the surveys.

WallaceinAnderland · 21/06/2023 09:51

I would never agree to that. It would be out of your control.

I would say either take it off the market or I withdraw my offer.