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notnow

Dont sign that agent contract yet!!!

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Should you  sign that  contract with an estate agent  as it is?.

 

I am not an expert in contracts, but I think that some  recent experiences with estate agencies going bust may make readers here think about the wording of contracts they may be about to sign.

 

Say you choose  and sign up with Agency A. 

How would you feel if the bill you eventually received was from agency B who are completely unknown to you and who you never had a contract with , and worse, that you had to pay it?

 

This does happen.

 

If agency A goes bust, agency B may walk in and take over the contracts, even after you have exchanged contracts and send you the bill . This is an assignment of contracts. It happens.  

 

Obviously Agency B should have written to you with a full explanation of the contract assignment, for your solicitor to check. But we are dealing with estate agents here.  Some agents  do not think they have to act like a business. They just take  the money with the minimum of work. They may not even respond to solicitors letters.

 

I would only ever sign a  non assignable contract now.

 

This means that insolvency accountants may have a claim on your payment, depending on the timing of the insolvency, but a random estate agency will not.

 

Is this a serious issue?

It has been estimated in the more upmarket press that 20% of estate agencies may go bust this year, so yes, it’s a serious issue. The going rate for selling has been pushed down in many areas to 0.8% or even less, due to competition for sales and the rise of the  cheap fixed fee online sellers.

This low income puts many estate agencies, especially those paying huge fees for franchises - which is most of them - in a precarious financial  position.

I have no connection with any agents, but I have had a bad experience with an insolvent agent. You guessed it - I had to pay an agent I never signed up with.

For those who think I should not have paid, remember that I would have then been chased through the courts.

I just wish my contract had been marked non assignable.

 

 

 

Edited by notnow

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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