Estate Agent Demanding Fees After Sale Through Another Agent

Transform_IT

Transform_IT

Transform_IT

Associate
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Hi everyone,

I’m looking for advice on a tricky situation involving an estate agent claiming fees for a sale that completed over a year ago.

Here’s the timeline:

  • In March 2023, we first listed our house with an agent but withdrew it from the market after failing to find a property we liked.
  • In July 2023, we relisted with the same agent, secured a buyer in August 2023, but the house we were purchasing fell through, so we withdrew again. The buyer also lost their sale.
  • In November 2023, we relisted the property with a different agent. The original buyers (who were introduced by the first agent) viewed the house via the new agent and made a revised offer, which we accepted.
  • We completed the sale in February 2024 through the new agent.
Fast forward to January 2025, and the original agent has phoned me, claiming they checked the Land Registry and noticed that the buyers were originally introduced by them. They’re now demanding over £5,000 + VAT in fees.

To complicate matters, the original agent has been struck off as a director for money laundering and misuse of COVID support loans. While they still operate the business in the background, their professional conduct is questionable.

Unfortunately, I no longer have a copy of the original contract as it was electronic and accessed via an app I no longer use.

My questions are:

  1. Can the first agent claim fees when the sale was completed through a different agent several months after their involvement ended?
  2. Does their professional misconduct (being struck off as a director) impact their ability to enforce such claims?
  3. Without a copy of the original contract, how do I handle this claim?
Any advice or similar experiences would be greatly appreciated. Thanks so much!
 
You need the contract really - it likely has a commission termination period - usually a few weeks would be considered reasonable - if you end up going with a buyer the agent has previously introduced you to, during the termination period, then you do owe the agent commission, though that normally wouldn't be accepted as the full agent fees for a sale (especially if a previous sale with the same buyer while under that agent has fallen through).

EDIT:

I'd be very wary of paying an individual anything though unless they are officially representing that business, which sounds like they may no longer properly.

I believe the agent is obliged to make available to you a copy of the contract but you can't rely on that being the same as what you actually signed (I'd take note of what Dowie said below as to being careful as to acknowledging yourself as a client until you've run it past a solicitor).
 
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I'd go and see a solicitor for an initial consultation and limit contact with them until you've had some professional advice, don't even acknowledge that you were a client or anything in response to them until you've got legal advice.

It does seem possible if they introduced the client - it's going to be down to the T&Cs (type of arrangement you had with them, whether there was an introduction clause that persists after the contract with them is over etc..) and what they can prove re: the client. That you canceled your agreement with them might count in your favour as that might negate the initial introduction - why couldn't they still negotiate a renewed offer when they had the contract for the property etc..
 
They'll need to provide proof of a signed contract but every EA contract I've ever seen or signed says they'll be due commission if they introduce someone who eventually buys the property.

In specific answer to your questions;

  1. Can the first agent claim fees when the sale was completed through a different agent several months after their involvement ended? Almost certainly.
  2. Does their professional misconduct (being struck off as a director) impact their ability to enforce such claims? Very unlikely, the contract will be with the business and they will be due the money. Who is or isn't a director really has no impact on your specific situation.
  3. Without a copy of the original contract, how do I handle this claim? You ask them to provide a copy of the signed contract and make all further communication in writing. I'd probably also contact the 2nd agent and look through that contract.
 
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Peerzy said:
They'll need to provide proof of a signed contract but every EA contract I've ever seen or signed says they'll be due commission if they introduce someone who eventually buys the property.
Click to expand...
Yep. This is pretty open and shut estate agent stuff. It stops buyers just going direct once the estate agent has taken photos/listed it etc.
 
In theory, you may find the 2nd agent wasn't actually ever due any commission as they didn't 'introduce' the buyer, however it's going to be much harder to fight that side now as they've been paid and won't be happy to hand it all back having likely actually done some work for it (chasing, negotiating etc....).
 
From the terms and conditions I found:

FEE ENTITLEMENT
The commission fee will be earned by us if we introduce, directly or indirectly a person who contracts to purchase the property during
the period of contract. We have a specific entitlement to a fee if: The property is sold to a family member; One of the owners buys
another owners share (e.g. as part of a separation agreement); The property is sold to a Property Developer; The property is part
exchanged; The property is sold at auction or is repossessed; if the seller withdraws for any reason after contracts are exchanged.

We will have a commission fee entitlement if you terminate our agreement and then sell your property to a buyer introduced by us within
six months of the date our agreement ends.
 
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if you scan this looks like 6months is the usual period for an estate agent to have dibs on a client they originally introduced, so March->nov could put you in the clear
forums.moneysavingexpert.com

Wording from estate agent’s terms

Hi, Re the last sentence below can anyone advise if this is normal for agents these days?
forums.moneysavingexpert.com forums.moneysavingexpert.com

the other strategies it discusses where agents engaged in shorter periods are told specifically not to negotiate with clients from previous agents is interestingf
 
jpaul said:
if you scan this looks like 6months is the usual period for an estate agent to have dibs on a client they originally introduced, so March->nov could put you in the clear
forums.moneysavingexpert.com

Wording from estate agent’s terms

Hi, Re the last sentence below can anyone advise if this is normal for agents these days?
forums.moneysavingexpert.com forums.moneysavingexpert.com

the other strategies it discusses where agents engaged in shorter periods are told specifically not to negotiate with clients from previous agents is interestingf
Click to expand...
It's from when the contract ends. They listed with them July, by August had an offer, then it fell through at "some point". That'll be critical as to when within the 6 months period ends/starts.
 
Transform_IT said:
  • In July 2023, we relisted with the same agent
Click to expand...

"We will have a commission fee entitlement if you terminate our agreement and then sell your property to a buyer introduced by us within
six months of the date our agreement ends."

It reads to me that unless you terminated your agreement with the original agent at least 6 months before your completion date in February 2024, you will be liable for their fees. Given that you were still dealing with them in August 2023 as you state, it seems this will be very close to 6 months. We would need exact dates I think.
 
jaybee said:
It reads to me that unless you terminated your agreement with the original agent at least 6 months before your completion date in February 2024, you will be liable for their fees. Given that you were still dealing with them in August 2023 as you state, it seems this will be very close to 6 months. We would need exact dates I think.
Click to expand...
he said he stopped Mar and restarted July - but was not very precise in his description.

e: or ? because he hadn't engaged someone else deemed to be continuous
 
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jpaul said:
he said he stopped Mar and restarted July - but was not very precise in his description.

e: or ? because he hadn't engaged someone else deemed to be continuous
Click to expand...
Restarted July and the contract says when it ends. The contract doesn't end in July, it began then.
 
jaybee said:
"We will have a commission fee entitlement if you terminate our agreement and then sell your property to a buyer introduced by us within
six months of the date our agreement ends."

It reads to me that unless you terminated your agreement with the original agent at least 6 months before your completion date in February 2024, you will be liable for their fees. Given that you were still dealing with them in August 2023 as you state, it seems this will be very close to 6 months. We would need exact dates I think.
Click to expand...
15th August 23 - withdrawn from market with agent 1.

27th November 23 - agreed sale with buyer via agent 2.

18th January 24 - sale falls through due to complications with our onward purchase and our buyers buyer.

24th January 24 - sale re-agreed with original buyers and back on track.

15th March 24 - completed sale and agent 2 paid.
 
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tell them you'd rather spend the 5k on a lawyer.

can they prove its not 2 different people with the same name? on the phone call you probably confirmed his suspicions though...

worse thing you can do is probably have any correspondence with them tbh, as it makes you look like you owe 5k.


whats the worse that can happen if you just ignore it and they either drop it, or try to push legal action.
you probably still get a chance to just pay the 5k and not dispute it?

I'dbe inclined to think the guy is trying it on tbh... shoulda told him the boys will deal with it, don't talk to me, talk to ma boys... give the adress of some traveller camp :D
 
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