October 18, 2016 at 5:37 pm #33855
I as many others, have moved from sole agency contracts to sole selling rights.
In the main this is insurance as opposed to holding people to a contract. If people are unhappy, no point keeping them on the books. Thankfully majority of our clients are very happy.
We have recently put a great deal of effort into a property, well priced, vendors love us (we love them).
BUT they have found a new build to secure the property they have done a part exchange (before talking to us).
New homes builder have instructed a a third party to sell the property (they will panel it out on a multi) – We are not on the panel. They are allowing us on the panel on this occasion but at a reduced commission rate.
Obviously we are not happy to go multi and not happy for a reduced commission.
AND we have a sole selling rights contract.
My question is, Are we within our rights to claim our fee as the property was part exchanged?
Be interested to hear form others who have experienced this.October 18, 2016 at 5:37 pm #33856
??October 18, 2016 at 10:56 pm #33859
If you have adopted a ‘standard’ SSR Contract, then it will state that you are entitled to a Fee.
If your clients accepted the Contract – then you within your rights to claim that Fee.
Whether or not you send the bill – and whether or not you get paid if you do – are two other things.
Let us know what transpires.
I’d be inclined to negotiate a reduced Fee with your original vendor client “as a goodwill gesture” and see if you can top it up by being the Agent agreeing the PX sale.October 20, 2016 at 7:51 am #33927
Really depends on how solid your sole selling rights wording is.
If solid then the answer is to put your bill in. The new homes developer should have asked what agency terms the owners are currently under.
Did the owners have a exclusion clause as to P/X. Was there an exclusion if they are named interested parties, if so was the developer mentioned? – Likely NOT
If you’d have had ‘sole selling rights’ with rider wording as to being able to do main agency, you’d have been able to offer you’d have handled the panel agents as sub agents.October 20, 2016 at 7:57 am #33928
If your contract is solid. Put your bill in to your clients and copy in the developer relating to the wording and leave it in their court to respond saying that at the stage of exchange of contracts or completion (whichever the trigger) payment becomes due suggesting court action to lodge a charge that to release would have to be paid to release to next buyers.October 20, 2016 at 11:08 am #33933
did the P/X company tell them that they may be due more than 1 fee?
did they sign a declaration with them saying that they know that they may be due more than 1 fee?
The way I have always dealt with issues like this is first decide how much you need compensating for your time and money. Talk to them make them aware and then do whatever the situation dictatesOctober 21, 2016 at 9:03 am #33977
When you refer to “the P/X company” do you mean the builder or the third party disposal outfit?October 21, 2016 at 2:32 pm #33987
Builder has agreed to take the property no matter what (large national), and doing part-ex trying to sell before property is built. Subbed out to third party.
As far as i am concerned i am owed my fee as per contract (they have found a buyer).
To do the right thing we have agreed to terminate our contract as we have found a buyer and will put it in hand through the third party. Little dubious as if falls through we could end up with nothing instead of a guaranteed fee as per original agreement.
Still hopefully Karma prevails!
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