EA contract - will this be a breach?

[jinglebelljinglealltheway]

Hi, we are in process of selling our house. Have verbally agreed to appoint an EA (lets call it X). Have done ID check etc but yet to sign the contract.

Then EA Y just called us to introduce a potential buyer. We didnt give Y the business or i should say Y didnt pitch for the business as the house is not in their area.

Does Y need a contract to cover this specific client? Or since the contract with EA X is not yet inforce, any introduction made prior to actual signing will be good? Or actually the contract with EA X is deemed active by the verbal agreement?

The likelihood of this buyer making an offer is unknown. But since the house has not been advertised and the only way for them to know about the sale is through EA Y.

We are keen to just sign the contract with EA X. Any potential interest can contact EA X after the listing goes live on Rightmove. But then EA Y will be pissed. They are a friend. Not close but it will be awkward.

Is there a way to involve Y just on this buyer without getting into any potential legal issue with X?

Thanks

If you ignore the possible intro from EA Y and list the property with EA X then presumably this person will just call up EA X and arrange a viewing?

edit - sorry, totally missed the line about them being a friend! Doh.

Well yes Y is a friend thats why they know we are selling.

Is it common practice that sellers dont have to pay agency fee if they find a buyer themselves? i dont have the contract with X yet. Cannot check fineprints....

If EA X didn’t introduce them to you that they cannot ask you to pay their fee. EA Y I would say morally should be paid something but I don’t think they have any legal
footing as you’ve no contract with them.

Your contract with x will say you owe them commission on any sale if it happens in their exclusive period regardless of how they were introduced . You can either 1. Sign a non exclusive contract with X but fees are likely to be higher.

1. Possibly agree with X that a sale to a specific person is excluded from their contract but I don't see why they would sign that. You will just look like a time waster.

Be aware that if you allow the person recommended by Y they might also try and claim commission from you even if they then go through agent X.

Personally I'd ignore the lead from Y and tell them thanks but no thanks. Eg Say you don't want to mix business and personal or tell them that you have already signed with X so can't make it non exclusive.

I thought that you had to declare to X if anyone was already interested. I would tell them that a friend is interested in buying.

We were selling a house through an agent and decided to change to a different one. Between leaving one and instructing another, a couple who were customers of DH asked to see it and offered on it. I did check with the agent we left and the one we were going with and they were fine. It was a long time ago though, when contracts were shorter and probably different.

We are in a pickle. Agent Y has now said they don't want any commission and all they ask is a viewing before the house goes on the market. They have some sort of relationship with the buyer and are keen to win this favour - with the assumption that since we will be saving on agent fee the buyer should get the house at slightly below asking. They absolutely would hate to see the buyer secure the viewing through X. So it will be a private introduction, which isn't a breach to our contract.

DP is adamant about sticking to the plan of letting X list the house and deal with any buyer. Well Y is a friend of mine. How can I make DP change his mind?

You don’t- your DH is right. Keep those relationships separate. Tell the friend no and stay with X.

You H is right here. Do not blur the lines because this is a 'friend'. Who by the way is putting you in a difficult position and there's no guarantee these people will actually offer at all. Presumably as there's no advert yet they haven't even seen it? Don't put all your eggs in this basket and launch as planned with X!

It's not so much "breach" you need to worry about, just that there's often a clause in the contracts that says you have to pay the estate agent their fee even if they didn't introduce the buyer. For clarity the best thing to do would be to have the viewing before signing with the agent - and get agreement with the agent in writing that the relationship with this particular viewer predates the contract and would not be subject to commission.

Can't you just delay signing with X? An oral agreement can be valid but it would be difficult to show you had agreed orally to all the terms. Then show the house to Y's candidate but let them know that they need to move quickly or it will go on the open market with X.

Read your contract - say to Y that it is not in your interest to accept a below asking price offer before the property has even been listed so it is asking price or nothing... they might be a friend but are using this fact against you. The relationship with the buyer and negotiating a below asking price offer, is at best, unethical.

You can declare them as a known contact before signing with X and agree that no fees will be due, if they buy your property. Bear in mind, that it can be useful to have an estate agent involved in a sale, to keep it moving along and get it over the line and I would question whether Y would be working for you or their contact and therefore might not have your interest at the forefront of their mind if they are not receiving a fee for this sale.

Our street is not the most popular in the area but this buyer has a family obligation that binds them to a narrow radius. And they are a cash buyer - funded by that family obligation. Why can't we just split the commission and save time and hassle? Thats clearly the woman in me saying.

If you believe that this is your best chance at a sale at the best price for you.... go for it... but at the first hint of a delay or negotiation... I would be pulling out and listing.