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Changed EA, 1st EA wants fee

11 replies

HelloHellebore · 17/09/2023 15:42

Long background, sorry!

We wanted to sell our house and signed with a first estate agent back in February. It had previously been let, and was left in a total tip by the tenant. The house needed clearing and cleaning before putting on the market, and the 1st EA knew this. The 1st EA valued to a high price - comparable to a house in perfect condition (the house next door had sold last year for around this price). However, before it was cleared or cleaned, the 1st EA already took photos and put it straight on Rightmove. I tried to stop them, so they didn’t upload the photos and listed it as “coming soon”. Not much interest (6 viewers in several months), no offers. Meanwhile, I arranged for clearing and cleaning, and once completed asked the EA to take photos for putting on the market - no response to emails. It turned out my contact had left the agency with no-one following up. So the house had been sat half-listed with no review or input from the EA.
I was frustrated and changed to a 2nd EA who reasoned for a much lower price (needs new kitchen and bathroom), took great photos, got loads of views, one offer. From someone who viewed twice with 1st EA.
1st EAs contract says they are entitled to their fee if, within 6months of us cancelling, someone buys who they introduced us to. Since they made such a mess of the marketing, I feel their fee is not justified. 2nd EA thinks we might have a case for arguing that the second listing at a much lower price is not the same sale, but I’m not convinced. Does anyone have any experience of a similar sitation? 1st EA is a major national chain who apparently employs people to check who buys a property after contract cancellation, so it is possible that they will follow up.

OP posts:
CircleWithin · 17/09/2023 15:58

You owe the first agent their fee. The second agent's argument doesn't make sense. I'd argue it though. You might be able to get a discount.

HelloHellebore · 17/09/2023 16:05

Thanks @CircleWithin . The 2nd EA referred to some case law where it had been decided that a 1st EA wouldn’t be entitled to their fee where the price for the second listing was markedly lower. Our price was reduced by 35k (13%), so quite a lot. I don’t know the specific ruling though to be able to compare circumstances.

OP posts:
WallaceinAnderland · 17/09/2023 16:22

You owe the first agent the fee. If they take you to court you will probably have to spend more than their fee to contest it.

0hNoNotAgain · 17/09/2023 16:35

You broke your contract with them so you owe the first agent their fee, unless you can prove that they broke their contract with you....

HelloHellebore · 17/09/2023 17:37

@GooseClues Thank you so much, that is a really helpful article!

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Twiglets1 · 17/09/2023 19:06

What a mess.

Can’t you just take it off the market completely and relist it with 2nd EA in 6 months? Or keep it on but just not accept accept any offers from anyone who already viewed it through EA 1?

Twiglets1 · 17/09/2023 19:08

You only have to pay EA 1 if you sell it to someone they originally introduced you to.
And of you paid commission to them you wouldn’t have to ALSO pay commission to EA 2.

HelloHellebore · 17/09/2023 20:01

@Twiglets1 The thing is, we’ve already accepted an offer, it’s the only offer we have got. Before switching EA I considered waiting 6 months, but I worried that it would have run the risk of the market being very different, and not necessarily any easier.

I have the impression that dual commission really is a thing, and since the 1st EA is a national firm, they have lots of resources to keep arguing that they should be paid in addition to the 2nd EA.

The link given by @GooseClues is helpful, it refers to a case where it was decided the 1st EA was not entitled to a commission. I suspect though that the contract I signed has been drafted with that case in mind, although there may be an argument that the buyer hasn’t become a buyer as a result of the 1st EA - if anything, by showing the house before it was cleared and cleaned, I think they put the buyer off!!

OP posts:
Twiglets1 · 17/09/2023 22:13

Well if you got your offer through someone your first EA introduced to you, they get the commission.

The same thing happened to us and the 2nd EA did not get any commission as they hadn’t introduced the buyer to us. It was unfortunate on them so we agreed to pay for the photos they had taken as a gesture of goodwill.

You need to read your contracts carefully but the client doesn’t normally pay 2 lots of commission.

Twiglets1 · 17/09/2023 22:15

It just depends which EA introduced the buyer to you as to which of them gets the commission.

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