Estate Agent denied commission only in limited circumstancesPrintPdfClose »

26/09/2011

Estate agents’ contracts normally contain a clause that gives them the right to a commission if the property is sold within a period of time after the agency agreement is terminated.

Recently, a case came before the Court of Appeal in which an estate agent sought to be paid a commission after introducing the person who eventually bought the property.

The buyer had looked around the property and decided not to buy it because it was too expensive, buying another property instead. Three months later, the buyer was shown the same property by another estate agent. This time, the buyer agreed terms with the vendor and bought the property.

The vendor paid the second estate agent’s commission; however, the first estate agent also claimed a commission as the original introducer of the eventual buyer.

However, the Court ruled that the introduction by the first estate agent was not the significant cause of the sale and that no commission was due.

This case would have been considered on its particular facts and great care needs to be taken when signing estate agents agency forms to ensure that you understand how and when the commission is payable so as to be sure that you do not have to pay an unexpected amount or for an unexpected reason.

Tracey Pearce

Partner
T: 01626 202414
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Debbie Hamzij

Partner
T: 01392 666534
Email Me