Estate Agent Demanding Fees After Sale Through Another Agent

[dlockers]

The solicitor has reviewed this part:

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.
and has said:

It is standard practice for an estate agent’s contract to incorporate terms & conditions that provide for their commission to be paid in circumstances where you have terminated the agreement but subsequently sell to someone they introduced.

The agent in question considers the couple you who purchased has been introduced by them. Whether that is justified or not will obviously depend on the facts and also the specific wording of the agreement.

The agreement terms state this right to charge expires after six months. And by the dates provided, this appears to be the case.

In order to provide specific advice you would need to schedule a first appointment with me in order that you can provide me with more detailed instructions. There is a fixed fee cost for that of £330 plus VAT.

So either call their bluff at a cost of £330 (or find a cheaper solicitor) and get them to send a letter to cease activity. Or, ignore the solicitor and see if they hire a fly by night solicitor and then engage your guy.

Depends on if you are totally 100000000% sure about the 6 months thing, and when you are taking your dates from.

Your previous agent was still contracted until the sale officially fell through (the contract would be in place until exchange, as that's when they get paid).

Your new agent start dates needs to be 6 months from when the chain collapsed. If you can satisfy this condition then nothing to argue.

 

[jpaul]

if the exchange&completion were done on same day to push out the exchange beyond 6 month threshold, then as rroff said could be open to question/reproach
(maybe they were just 1st time buyers with ready money and no constraints though)

 

[Transform_IT]

So either call their bluff at a cost of £330 (or find a cheaper solicitor) and get them to send a letter to cease activity. Or, ignore the solicitor and see if they hire a fly by night solicitor and then engage your guy.

Depends on if you are totally 100000000% sure about the 6 months thing, and when you are taking your dates from.

Your previous agent was still contracted until the sale officially fell through (the contract would be in place until exchange, as that's when they get paid).

Your new agent start dates needs to be 6 months from when the chain collapsed. If you can satisfy this condition then nothing to argue.

• March 2023: Listed property for sale with an agent.
• 6th May 2023: Notified removal of property from the market and gave a 30-day notice period.
• 14th July 2023: Relisted the property with the same agent via email. No new or updated contract was signed.
• 27th July 2023: Received an acceptable offer from the couple who ended up buying.
• 11th August 2023: Notified the agent we couldn’t find a suitable property and decided to stay where we were.
• 14th August 2023: Received an email from the agent confirming the property had been withdrawn from the market—no notice required.
• 23rd November 2023: Wife found a house she liked and asked YOPA to market our property - previous agent had been in news for money laundering and a COVID loan scandal. They had been struck off as directors, so we didn't relist with them.
• 25th November 2023: Due to exciting of remarketing, wife texted our original buyers (via mutual friends and previously exchanged contact details) to ask if they were still interested.
• 27th November 2023: Buyers made a revised, lower offer through YOPA before any official marketing started.
• 28th November 2023: YOPA agreed on the sale and issued the memorandum.
• 18th January 2024: Planned property purchase fell through, temporarily pausing the sale.
• 24th January 2024: Sale resumed.
• 15th March 2024: Exchanged contracts and completed the sale.

 

[dlockers]

• March 2023: Listed property for sale with an agent.
• 6th May 2023: Notified removal of property from the market and gave a 30-day notice period.
• 14th July 2023: Relisted the property with the same agent via email. No new or updated contract was signed.
• 27th July 2023: Received an acceptable offer from the couple who ended up buying.
• 11th August 2023: Notified the agent we couldn’t find a suitable property and decided to stay where we were.
• 14th August 2023: Received an email from the agent confirming the property had been withdrawn from the market—no notice required.
• 23rd November 2023: Wife found a house she liked and asked YOPA to market our property - previous agent had been in news for money laundering and a COVID loan scandal. They had been struck off as directors, so we didn't relist with them.
• 25th November 2023: Due to exciting of remarketing, wife texted our original buyers (via mutual friends and previously exchanged contact details) to ask if they were still interested.
• 27th November 2023: Buyers made a revised, lower offer through YOPA before any official marketing started.
• 28th November 2023: YOPA agreed on the sale and issued the memorandum.
• 18th January 2024: Planned property purchase fell through, temporarily pausing the sale.
• 24th January 2024: Sale resumed.
• 15th March 2024: Exchanged contracts and completed the sale.

The only dates that matter are orange and red. It is as simple as that.

 

[Hyburnate]

The only dates that matter are orange and red. It is as simple as that.

It would come down to the definition in the contract of sell, if there is one. Is that agreement to sell or exchange?

Because that's key, because it's under 6 months if it's agreement to sell but over 6 months if it's exchange as exchange happens >11th Feb.

Op, check if “sell” is tied to the exchange of contracts, completion, or merely introducing a buyer.

 

[dlockers]

It would come down to the definition in the contract of sell, if there is one. Is that agreement to sell or exchange?

Because that's key, because it's under 6 months if it's agreement to sell but over 6 months if it's exchange as exchange happens >11th Feb.

Op, check if “sell” is tied to the exchange of contracts, completion, or merely introducing a buyer.

Not in a million years will it be exchange. An agents job is to introduce a buyer and encourage a timely exchange. They have no "skin" in the game other than polite influence/chasing to ensure they get the actual commission payment.

Of course your comment would be useful for the Op but you are cherry picking dates that have nothing to do with the estate agents role (which is to introduce a buyer).

 

[Hyburnate]

Not in a million years will it be exchange. An agents job is to introduce a buyer and encourage a timely exchange. They have no "skin" in the game other than polite influence/chasing to ensure they get the actual commission payment.

Of course your comment would be useful for the Op but you are cherry picking dates that have nothing to do with the estate agents role (which is to introduce a buyer).

I’ve never sold a house so never seen a contract for sale but yes you’re totally right.

I do think that OP has fallen foul of the contract tbh

 

[Cleisthenes]

We have a similar thing in recruitment where if a candidate is found by us and introduced to a client, if later down the line the client hires the candidate directly then we would be owed a fee.

So I can see how this might be contractually reasonable.

 

[jpaul]

Not in a million years will it be exchange. An agents job is to introduce a buyer and encourage a timely exchange. They have no "skin" in the game other than polite influence/chasing to ensure they get the actual commission payment.

it's exactly exchange look at earlier linked code of practise https://www.tradingstandards.uk/med...des-of-practice/residential-estate-agents.pdf
but fortunately, as said, that & completion were same day

 

[GeX]

Going off the timeline above.. you were introduced to your buyers via agent 1, then sold to those buyers less than 6 months after ending your contract with them.

Not really sure why YOPA (?) were involved at all as they don’t seem to have done anything

 

[dlockers]

it's exactly exchange look at earlier linked code of practise https://www.tradingstandards.uk/med...des-of-practice/residential-estate-agents.pdf
but fortunately, as said, that & completion were same day

That's an optional scheme, no?

And says:

 

[jpaul]

That's an optional scheme, no?

transforms contract excerpt shows if the seller withdraws for any reason after contracts are exchanged
but ok, yes, they are contract templates an investigatory ombudsman would deem correct .

'red' date does sound like an exchange

 

[dlockers]

Going off the timeline above.. you were introduced to your buyers via agent 1, then sold to those buyers less than 6 months after ending your contract with them.

Not really sure why YOPA (?) were involved at all as they don’t seem to have done anything

I mean that's the absolute common sense view of this right. OP even got their wife to drop the original buyers a text, forging some implausible make belief connection that was identified on retrospect as a get out of jail clause

 

[Transform_IT]

Going off the timeline above.. you were introduced to your buyers via agent 1, then sold to those buyers less than 6 months after ending your contract with them.

Not really sure why YOPA (?) were involved at all as they don’t seem to have done anything

We instructed YOPA to remarket our property and try a new agent, particularly after learning about certain actions taken by our previous agent. The following weekend, my wife decided to text our previous buyers, despite hearing through a mutual friend that they were purchasing another property. Their intended purchase was a new build, and they had only paid a small reservation fee. They responded, confirming their continued interest in our property. We forwarded their details to YOPA, who negotiated with them, leading to a revised offer. Since we secured a sale at this stage, YOPA did not need to revisit our property to take new photos or measurements.

After speaking with our solicitor today and reviewing the following clause in our previous agent’s terms and conditions:
"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 appears the key term here is "sell," which, as defined in the terms, refers to the point of exchange and completion. Up until that point, any offer remains non-binding, as either party can withdraw, and the property is not considered sold.

Based on this, my understanding—and what I am seeking clarification on—is whether this interpretation is correct. The agent’s clause does not specify receiving an offer within six months but explicitly refers to a sale, which only occurs upon exchange of contracts. Until that point, the sale could have fallen through, meaning the property would not yet be "sold." Is this the correct interpretation?

 

[GeX]

For me, the sale process begins when an offer is made. It can take > 6 months for that to go through to completion.

You're just looking for a technicality to get out of paying £5k, which I get - but it doesn't make you right.

 

[Transform_IT]

Just found received this:

Thank you for providing the updated timeline and details regarding your property sale and the agency agreement. I have reviewed the clause in your previous agent’s terms and conditions, specifically:

"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 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."

Here is my assessment of the situation based on the revised timeline:

Definition of "Sell"​

The key term in the clause is "sell," which the agreement defines as a buyer who "contracts to purchase" the property. Under UK property law, this refers to the exchange of contracts, at which point the transaction becomes legally binding. Offers made prior to exchange remain non-binding, and either party can withdraw without any legal obligation.

The Property Ombudsman (TPO) guidelines align with this interpretation, confirming that commission is due only upon exchange or completion, not simply on receipt of an offer.

Revised Timeline Analysis​

1. 27th July 2023: You received an acceptable offer from buyers introduced by the agent.
2. 11th August 2023: You notified the agent that you were unable to proceed with the sale due to not finding a suitable property.
3. 14th August 2023: You reiterated this decision to the agent.
4. 15th August 2023: The agent confirmed via email that your property had been withdrawn from the market, and the agreement ended.
5. 23rd November 2023: You re-marketed the property with YOPA.
6. 25th November 2023: Your wife contacted the original buyers (introduced by the previous agent), who confirmed interest.
7. 27th November 2023: The buyers made an offer through YOPA.
8. 28th November 2023: YOPA issued a memorandum of sale.
9. 15th March 2024: Exchange and completion of the sale occurred.

Does the Clause Apply?​

The clause states that the agent would only be entitled to a fee if the property was sold (i.e., contracts exchanged) to a buyer they introduced within six months of the agreement ending. Given the sequence of events:

• The agreement was terminated on 15th August 2023.
• The six-month period during which the agent could claim a fee expired on 15th February 2024.
• The property sale (exchange and completion) occurred on 15th March 2024, which is beyond the six-month period.

While the buyers were introduced by the agent, the sale occurred outside the contractual timeframe, meaning no fee entitlement applies.

Conclusion​

Based on the agreement’s terms, the agent is not entitled to a commission fee, as the sale did not take place within the six-month period following termination. This interpretation is consistent with standard legal definitions of "sale" and the Property Ombudsman’s guidelines.

If you need further clarification or support, please don’t hesitate to contact me.

 

[Rroff]

Not in a million years will it be exchange. An agents job is to introduce a buyer and encourage a timely exchange. They have no "skin" in the game other than polite influence/chasing to ensure they get the actual commission payment.

There is no concrete one way to this - somewhat depends on the contract. It might be deemed the terms in the contract are too vague and the most substantial point i.e. exchange of contract would be used in judgement (this is what seems to have happened in the cases I can see - there are a few involving Foxtons who seem to like chasing this stuff).

Related to this how much the agent is involved introduction vs purchase, etc. will depend if they are actually able to claim a fee and how much and/or whether the agents involved should split it but again so many ways it could go i.e. if the second agent has evidence they asked the seller to provide them with a list of people who've previous shown interest and the seller didn't then that may make the seller liable to pay more than one fee whereas otherwise they might not be judged liable to pay more than one fee.

I also wonder if the director is actually able to operate in an official capacity from some of the stuff Transform_IT has posted and may just be chancing it as the agreement will likely be with the agency not the individual.

 

[matt100]

Also there'd be absolutely no way of proving that you "sold" your property without an exchange. Because you haven't.

As anyone who has ever sold a house knows "agreeing" means absolutely nothing which is why so many people pull out/sales fall through.

Although it is massively debatable what the 2nd agent did and the OP does seem to have missed being screwed over by 2 agents at once by the skin of his teeth.