It states it in the contract, so why don't they agree?

[shep_no_platinum]

Right,

Im not seeking advice here, im asking your opinion.

Basically I work for an Estate Agents and i am their only employee. Its a small, honest firm who are well known in the area for their kindness and professionalism.

Basically due to the recession i have been put down to a 3 day week

Anyways, at the moment any money for the company means good news.

Sales are few and far between but we agreed a sale on Friday for a couple who have been on the market with another agent for 10 months. They came on with us in February and we got them a sale, which was all agreed and sales memorandums were typed and sent out Saturday.

We received a call today off the vendor who no longer wishes to stay on the market as its their second house (empty) and they don't need to sell immediately. They have pulled out of the sale and will remarket in 12 months and try to achieve an extra £10,000 as they think the market will have improved.

So... We are quite upset because we have done our bit in securing a sale which both parties found acceptable. Now then, we offer a no sale, no fee contract. But it is clearly stated (not small print) in our agency agreement/contract which they have signed its states - "In the event that a sale has been agreed and you the vendor withdraw the property from sale, a charge of 50% of the agreed fee is payable to cover costs of administration and time involved".

We have made the vendor of the property aware of this and they are now saying they arent paying.

Where do we stand - i believe they have no choice but to pay, but 2 of my bosses are saying we don't have a leg to stand on (madness in my opinion - its because they are too nice). But my other boss is fuming saying they have to pay, we are not a charity, we have done our bit and they are just walking all over us.

Opinions please?

 

[shep_no_platinum]

Surely this is a matter best dealt with by your solicitors.

yes, it is.

But i just wanted peoples opinions. I know my boss's will let the vendors walk all over them because they are too nice and don't want to cause any hard feelings.

That's their weakness in the business game.

They won't call the solicitor for advice, simply because they wouldn't want the vendors speaking bad of them, even though it wouldn't tarnish their reputation.

 

[shep_no_platinum]

this, you're an estate agents, you should have solicitors you deal with every day, who although probably not experts in this specific field are a better starting point than ocuk

I understand this, but i don't have a say in the companies decisions.

They can listen to me, but won't do what i say as i have a different opinion to them.

They won't call a solicitor and will just let it slip by.

I just wanted to know what you guys think and if they should have just sent the invoice to them. Then if they fail to pay contact solicitors?

Thats what i would do...

 

[shep_no_platinum]

I don't really see how they can think they shouldn't pay, if it's black and white in a contract that has been signed then they don't have a leg to stand on.

I'd send them an invoice, with a covering letter, explaining the situation, quoting the parts of the contract which are relevant to the situation and ask for payment within x days, if not recieved then you will be taking the matter further as they are legally binded by the contract.

This is my opinion, but my bosses don't seem to think i know what im talking about because im on 3 days a week because they can't afford to pay me a full wage, yet they will let this fee just slip buy.

The whole idea for putting this in the contract was to stop people doing this.

 

[shep_no_platinum]

My opinion is that they have signed a legally enforceable contract and that it would be madness not to invoice them and expect payment. I suspect that your bosses are hoping that they come back to you guys when they want to sell again - which I am willing to bet they won't do. I certainly wouldn't in their shoes.

Bill them and chase them through the small claims court if they don't cough.

Again, this is what i feel.

Its £1200 they are chucking away here. Its not just £250 or something.

Thats more than a months wages for me when i was full time for christs sake.

What 2 out of my 3 bosses are arguing is the fact the sale has only been agreed since friday and we were open Saturday, Sunday and have been told today to cancel the sale after it was all agreed and letters were sent out explaining this.

 

[shep_no_platinum]

Surely the sale is only "agreed" at the exchange of contracts (between the vendor and the buyer)? Up until then no sale has been agreed and the vendor and buyer can essentially do as they please.

yes, but in this day and ages (or in this area) we have not seen an exchange of contracts before the day of completion in a long time.