Is Agenst Fee Still Payable in this Scenario

What does their contract say? Payable on exchange of contract? Payable on completion? Or something else?

Isn't the fee a percentage? I would have thought that the fee should be the percentage of the deposit.

Doesn't the agreement with the agent say something about "Ready, willing and able" to complete? This is not the case here.

What does their contract say? Payable on exchange of contract? Payable on completion? Or something else?

"Payable at completion or within six weeks of exchange of contracts whichever is earlier".

Ken

Good point about the %. Slight change in position, this morning, as buyer may still go ahead but will not know for certain for some weeks - to do with his work. Feeling is that the agent has earned a payment and the seller will have

Ken

Ready willing and able purchaser - is if he/she or they is/are prepared and is/are able to exchange unconditional contracts for the purchase of your property. You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, if such a purchaser/s is introduced by us in accordance with your instructions, and this must be paid even if you subsequently withdraw and unconditional contracts for the sale are not exchanged, irrespective of your reasons.

Above are the exact words form the contract.

Ken

If the buyer does drop out and forfeits the deposit, you will still wish to sell the house. The agent will still want a second stab at selling it for you, and I suggest that irrespective of what the contract says, the agent should be prepared to accept a substantial reduction in their first fee as a condition of being given the opportunity to earn a second fee.

In message , Ken writes

So they can only charge if YOU pull out, not the purchaser.

Not so. Read it again. It says the fee is payable *even if* he pulls out *before* exchange at a point where the buyer was still willing and able to exchange. It *doesn't* say it is not payable if anyone pulls out *after* exchange.

There appears to be an unstated assumption here that the purchaser is bound by the "unconditional contract" and *cannot* pull out without paying compensation. I would imagine, further, that the buyer's liability for compensation would not be limited to merely losing the deposit, and that he could be held liable for the full purchase price, or more realistically, for the value of the consequence to the seller of the first sale not going ahead.

This is potentially quite a lot. Typically it might take another few months to sell the place, the vendor might get less for it when it does eventually sell, and meanwhile will have probably lost his opportunity to buy the place he was expecting to move to, and will either need to complete and get a bridging loan, or be himself forced to pay compensation to *that* seller. Ten percent is unlikely to cover all that *and* the agent's fee.

Much easier in principle would be to force the seller to complete, telling him "Look, you've bought it, you've got it, now pay up. If you don't want it, then *YOU* can have the hassle of selling it!". What's the use of a binding contract if the parties think they won't be bound by it?

Not as simple as that as there other parts of the contract. So can't take this out of the context and no one would want to have the full text reproduced here.

Ken

In the past hour or so there has been some confusion cleared up (solicitor) as it is not just a case of buyer pulling out and losing their deposit. We now know, as you say, it is a legally binding contract and the seller can expect more than just the forfeiture of the deposit. Another twist is that the seller can't find anywhere to move on to and feels it may be a hidden blessing/omen and wonders if he should just take the deposit money and stick where he is. A friend of mine but I wish he would make his bloody mind up.He has however now agreed, with the agents, to pay half their fee from the deposit should it not complete. They have agreed to reduce, any future bill, by the same amount if he sells in the future.

Phew!!

Thanks for your help

Ken