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I have a renovated house privately on the market via my trademe profile that has been listed for about 3 weeks.
I had a local viewer approach me earlier this week via the TM site who inspected today.
She declared she went through the unrenovated house in July 2008 with an agent when we attempted auction. It was moved from sale therafter, and we moved into the property in October 2008.
she is very interested in the property (declared the same to agent at the time but didn't turn up for auction).
If, and I mean a big IF, an offer and sale were to go through, am I liable for introduction fees/commission for the Agent?
She declared she went through the unrenovated house in July 2008 with an agent when we attempted auction. It was moved from sale therafter, and we moved into the property in October 2008.
Me? I'd be writing to the agent and informing them that there has been renovations done since they had the listing and, since it is nearly 18 months ago, you are advertising it on Trademe.
I would request confirmation, in writing, from the agent that they wouldn't be pursuing any commission on the subsequent sale. I would also be requesting names of those whom the agent has kept in contact with over that time with reference to your property. Give them a time limit for the information. Also, include a stamped, self addressed envelope.
For future reference. I never allow commission to be paid upon confirmation of a sale, only on completion of the sale (written into the listing authority). Also, I require a time limit to be written into the listing authority for the claim of commission. In your instance, you are over my 12 month time limit.
IMHO, I wouldn't have thought so given that it's a good eighteen months since the property was on the market with an agent. Also considering you have renovated the property since, so therefore it could be argued, it is a different house.
Give the agents office a ring and explain the situation to the manager and see what they say. I think 18 months is a long time. You would normally be sued for the commission if you dropped the agent, put it up for sale privately soon after and then took an offer from a buyer at maybe a lower price, because no commission was involved. If the manager says no commission will be asked for, get it in writing or email.
Unhappily there is no easy answer to your question. The terms of the agency agreement will say the agent is due a commission on any sale to a person introduced by them.
18 months is a fair passage of time so that is in your favour, plus the renovations you have carried out. There have certainly been successful cases of commission sued for on a sale a year after introduction.
Nevertheless most agencies aren't too interested in getting into court proceedings. The cost, delay, and uncertainty is not to their taste.
If they get wind of it and they are broke they will pursue you and win. Listing forms are very clear on this. It's nonsense but those are the facts. Whether they would ever find out??????????????????
If they get wind of it and they are broke they will pursue you and win. Listing forms are very clear on this. It's nonsense but those are the facts. Whether they would ever find out??????????????????
its in a very small village Dean, quite likely. I had another agent come around yesterday (the potential purchaser is known to her as well) and I put the question to her. She ''felt'' it wouldn't be a problem either, but someone's feelings don't really count for much in times such as these.
I will give the original listing rep a call today, just in case.
I agree with th above, front it up with the Agent and whatever their reply you will know where you stand. I would argue that you re not liable as time has passed by and you withdrew the property, moved in, renovated it, and then relisted on TM.
R/E agent commission/intro fee?
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