Are these Estate Agency terms normal ?

[Snowflake760]

I’m looking at selling a probate property which I know will be difficult to sell . It’s been 20 years since I last sold somewhere so wondered if these terms are the norm . It says we’ll pay :

1. for a purchaser introduced by the agent
2. a purchaser who the agent negotiated with
3. for a purchaser introduced by another agent

I’m ok with these… but then it adds

These obligations continue for 6 months after termination if another agent is contracted (so basically double fees for 6 months) or for 2 years if no other agent is instructed . (not sure I understand the scenario here .. maybe to stop you taking it off the market and re marketing?)

It’s mainly the ‘6 months after termination’ that I’m concerned with so would be grateful for any more recent info. Thanks !

No. We're selling and have negotiated 8 weeks, at which point it becomes effectively a rolling contact with 14 days notice for either party.

It just means that if you switch agents you'll be given a list of people the first agent introduced, then the second agent won't engage with these people if they come back as interested parties.

Happened to us, we listed with new agent but then someone who the first agent introduced was proceedable and offered on the house - so we are back to dealing with the first agent. Second agents accept that these things happen from time to time.

This is one of the many reasons I won’t use high street estate agents. I would get your solicitor to check over the small print on the contract as I had no end of problems a few years back with a similar scenario and the small print on the contract they tied me into 🤦🏼‍♀️😫

@TheEnglishSystemSucks so do you mean that the second agent won’t claim commission on any first agent’s clients ? Is this something that’s standard or negotiated ?

I’m desperate to sell so don’t want to waste energy negotiating if the 6mth / 2 yrs clause is standard

@Susanap I wish it was that simple …the next problem is to find a solicitor that will do the conveyancing as the solicitor dealing with the estate won’t. Its a flat and apparently since Grenfell many solicitors indemnity insurance increases make this unviable.

So sorry to hear this 😫 Don’t worry there are tons of estate agents on here who I’m sure will be along shortly to advise you on contract terms. All the best with your sale x

We confirmed with the second agent before we signed on with them - I suppose it could vary between agents? You can refuse to sell to anyone you want, so if the second agent tried to introduce a buyer the first agent had already introduced then you just say to the second agent that you won't let them view as the interest is with another agent already.

To be honest I'm not sure if it is like an unspoken agreement in the world of EAs - hopefully someone more knowledgeable can confirm!

Please, please please please please do NOT sign up for six months.

Insist that 8 weeks is your max or you will go elsewhere.

If they have absolute faith in selling it and that they have absolutely NOT overpriced it, they will agree.

@KievLoverTwo thanks for the advice .. do you mean don’t sign the contract for a 6 month term , or don’t sign the lock part for a 6 month term ?

Our contract recently did not have that.

Is it a big chain agent? If yes, try a local independent. We found independents vastly better to deal with as both seller and buyer. In fact one chain was so awful we stopped viewing houses they were marketing.

They’re trying to avoid the scenario where they find a potential buyer, you and they agree to take it off the market and sell privately to avoid the agent’s commission.

It's fair for them to be compensated for someone they introduced. But two years is too long. Just put a line through that and change it to 6 months.

Sorry, I just re-read, I misunderstood. I agree with a PP, 2 years is too long.

But also, and crucially if you are in a rush, don’t agree to give them six months to sell your house. Overpricing is absolutely rife and if you get stuck with a duff agent for a long time, the house won’t sell, or you will have to make big price drops. So only sign to allow them to exclusively try to sell your house for a maximum of eight weeks.

Agree with above. And I'd be happy paying a higher level of commission for a shorter tie in. It should really motivate the agent to recommend a sensible price and get the deal done.

Thanks everyone, its a very unusual situation, neither we nor the estate agent think we’ll sell quickly and the price will be open to (silly) offers. So in this case we’re just happy to find an estate agent to give it a go and I have very little negotiation power - I’ll try and push back on the 2 years though.