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commission dispute

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  • commission dispute

    Hi guys!
    My gran signed her house over to my aunt ( who lives in australia) 15 years ago but there was an agreement that when my gran died the house would be sold and the proceeds divided between my aunt myself and my 4 cousins. Gran died christmas 2007 and the house was on the market by January with farrell and hayworth. The contract was initially for 16 weeks, commisssion to be paid on the valuation of £159950. After 16 weeks with no offers and the market crashing, my aunt asked the manager to write up a new contract for a lesser amount ( the house was not in a good state and needed a large amount of work doing to it) He told my aunt that he could leave the contract as it was and he would only take it on the sale price of the house. Nothing was put in writing. Since then he left to go to another branch, the house was taken off the market and fixed up. A few months later after the renovations my aunt contacted them again they revalued the property and it was put back on the market at an agreed price of £142000. the house has now sold at £135000 but the conveyancer who is dealing with the sale and the division of equity between the relatives said the commission is being charged at the original asking price of £159950. My aunt has tried to arrange phone calls with the estate agency manager who is apparently too busy to ring her and doesn't email her to rearrange calls. She has managed to speak to the receptionist who told her there is nothing in writing so there is nothing that can be done. My aunt has asked me to go to the estate agents on her behalf in a few days to try to 'sort something out for her'.
    It seems like even though they reappraised the property when it went back on the market they never drew a new contract up. I would have thought that as she took the house of the market for a few months then went through the rigmarole of the re valuation and putting it back on the market that a new contract would have to be in place as woyuldn't the old contract be null and void seeing as though she took the house off the market and they stopped advertising it??? And more importantly if there is no contract in place from the time they started remarketing the property then would she have to pay them any commission at all on the sale as she has no current contract with them????

  • #2
    Have you hired the conveyancer? If so, you are their client. If you have, tell them to only pay the EA the reduced amount. I assume he/she will be settling the EAs fee from proceeds of sale.

    Get the conveyancer to pay the EA on the basis of the lower price.


    • #3
      my aunt hired the conveyancer. I received a message from my aunt this morning it turns out she didn't take the house off the market although she did send them an email requesting they review the price and realisticaly a new contract should have been drawn up.

      "I got in touch with Farrells in October last year telling them to take the house off the market, whilst the work was beging done. ***** ********* got back to me to ask if they could still market it whilst the work was being done and they would inform viewers of the situation. I told her OK but the price would need to be reviewed once the work was finished. I sent the email regarding reviewing the price on the 20th October 2008. If they are not willing to come to the party on the 135,000 commission I think they should at least drop it to, 142000, which is what they said it would be going on for after the work was completed. Lets face it this is 9 months after the original contract was signed."



      • #4
        As googler said you can simply instruct your solicitor to pay a reduced fee, if the agency knows they fucked up they wont press it, I would expect a nasty letter or 2 but if you respond kindly explaining what you have above then they will settle for the reduced fee.