Estate agents commission
How to reject a claim for commission from an estate agent
Rejecting a commission claim
Many estate agents try to claim for commission even after
they've had their instructions to sell withdrawn on the basis that
they introduced the buyer.
If the agent is a member of The Property Ombudsman or National
Association of Estate Agents, they waive their right to commission
six months after your withdrawal.
In a recent court case, however, the judge ruled that the agent
must show they were the effective cause of the sale. In practice,
this is likely to mean that an agent has to do more than just
introduce a buyer but work on the sale to completion. In other
words they must have introduced the purchaser to the purchase, not
merely to the property.
Beware of agents who aren't members of the TPO or NAEA. They can
make a claim for commission up to six years later based on the
people they might claim to have 'introduced' to your property.
"Ready, willing and able"
Some contracts contain a clause which states that if the agent
finds a 'ready, willing and able' purchaser, you must pay the agent
commission, whether you sell the property to that purchaser or not.
It is highly advisable not to sign this type of
agreement as there may be good reasons for withdrawing from sale
and you shouldn't be penalised if you do.
If you receive an unwarranted claim for commission from an
estate agent then send them a letter stating the following:
"I have received your letter of [date] requesting payment of
the sum of [£......], representing
[.....per cent] commission on the sale of the
above property to [purchasers].
We were able to find a purchaser privately ourselves without
any introduction or intervention from you. Our contract states that
we are only liable to pay you commission if you introduce us to an
eventual purchaser, or if another agent introduces us to an
eventual purchaser during the sole agency period. This has not been
the case. I therefore reject your claim for commission."
If the estate agent persists with their claim then contact the
TPO or NAEA. The property ombudsman can award up to £25,000
compensation for instances where sellers have been forced to pay
commission when they shouldn't have.
Claims Financial