We are selling our PPOR and have an agreement in place with a REA. The agent has introduced an prospective buyer to us who has now approached us privately to sell to him after the agency agreement has concluded so that he can offer us a deal whereby he pays us the same amount that we would get after the agent's commission has been deducted.
Is this legal? We feel that we would still be liable to pay the agent's commission as he was intorduced by them.
We would appreciate any feedback.Chris & Ken
As the agency agreement has finished and assuming that the agent is no longer involved in the sale ie the agency agreement has been terminated (in writing) and the agent is no longer seeking prospective purchasers on your behalft, then you are free to deal with any parties you so desire.
Do you currently have a signboard/advert showing the house for sale? Can it be seen that you are actively marketing the property and not the agent?
You were not introduced to the prospective buyer (so this is a new approach to yourselves unless the buyer sought you out during the period of agency – then you would be seen to have an obligation to the agent).
As the agent has introduced the purchaser during the period of the agreement the agent is entitled to commission even if the sale contract is entered into after the agency agreement expires
Hi mrscam
You have a couple of different answers to choose from so I thought I'd give you another one to throw into the mix.
It all depends on what is stated in the sales agency. If there is nothing said in the agency you signed then you are free to sell privately to the purchaser after the agency has expired. However, usually there is something in the agency to the effect that if the purchaser was introduced to the property through the RE Agent, then the Agent is entitled to commission even after the agency has expired. The Agency would set out the time period for this, usually about 90 days.
Just be wary of doing this. The REA will have access to any sales data. If the agent sees that you have sold your property via the data and can see that it was sold to someone he/she introduced to the property, then the agent will probably take you to court to try to get the commission from you. The agent may not win, but it will probably be an expensive and time consuming process.
Just as an aside, why would you agree to do this? You are not getting any more money than if you sell through the agent. It is the purchaser who will be getting the entire benefit. Yet you carry the risk of being sued if the agent finds out. It just sounds a risk for absolutely no benefit to you at all.
Cheers
K
Thank you all for your comments.
We were unsure if we would still be liable for the agent's commission but thought we would check with the experts on this forum.Regards
Ken & Chris
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