Home Buying in London>Question Details

Hanney, Home Buyer in London, uk

i am buying the property i have been renting. The seller has agreed to my asking price but the estate agent

Asked by Hanney, London, uk Sat Jan 3, 2009

is asking me to bear the cost of his agency fees. I have no agreement with him as an agent for the sale but he was the sellers agent. He was the estate agent in charge of the property i was renting. I am responsible for paying his agency fees or is the seller

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This is good for you; if you don’t have an agreement, the estate agent should be paid by the property owner not you, unless estate agent participated in documents and etc on your behalf. Executed contract signed when you leased home, and listing agreement govern how he should be paid.

However, if you have to find the legal rental terms and conditions, you can readrental laws (in the UK), at Plaza Estates website, which should help put you in the right direction as far as property is concerned.

http://www.plazaestates.co.uk/
0 votes Thank Flag Link Thu Dec 27, 2012
You should have made sure that you read the rent agreement thoroughly.

I was recently looking for a home on rent in London, I came across Plaza Estates, and deployed them as my agents, because I did not want to go about the search on my own. I signed an agreement with them and paid them a 2% commission fee.

http://www.plazaestates.co.uk/
0 votes Thank Flag Link Tue Dec 4, 2012
OK, Hanney, I just noticed you are in the UK. I don't know what is customary in your area. In that case I would present my offer as 1.75% less + the fee, so that you're still paying the same amount.
0 votes Thank Flag Link Sun Jan 4, 2009
GOOD FOR YOU, if you dont have an agreement with estate agent should be paid by the property owner not you, unless estate agent participated in documents and etc on your behalf. Executed contract signed when you leased home, and listing agreement govern how he should be paid.

Perhaps all parties can work in concert together resolve issues.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Jan 4, 2009
Thank you for your reply Mr Bill Eckler.
In response to your query JR, I had made an offer of £800k to the landlord, which he had accepted. This was communicated to me by the estate agent, who also told me that I am to pay him fees of 1.75% on top of the agreed sum. I did not have any agreement with the agent and always thought that the seller would bear the cost of the estate agents fee as he has an agreement with the agent to sell the property. In my tenancy agreement there is no clause about myself bearing the cost of any agency fee in the event of a sale.
0 votes Thank Flag Link Sun Jan 4, 2009
The only thing that I can think is that when you signed the rental agreement, there was a clause in there with a provision that should you purchase the home then a commission was due to the agent. If you can't find a clause like that within your original rental agreement then I can't think that you should owe them a commission.
0 votes Thank Flag Link Sun Jan 4, 2009
Can you elaborate when you say the agent is asking you to "bear the cost of his agency fee"? You have made an offer of, for example, 300,000. The agent wants you to pay, for example, 300,000 to the owner and then another 15,000, 20,000 or 25,000 on top of that to him? Please be more specific so I can understand what is going on.
0 votes Thank Flag Link Sun Jan 4, 2009
Hanney,

This is not to be considered legal advice, but normally with the sale of a home the "seller" is responsible for paying any "professional service fees" (commission).

Since the owner may be trying to pass this expense to you, we recommend having a conversation with them to clarify your concern.

Consult a real estate attorney for the best source of information on legal affairs.


Good luck
0 votes Thank Flag Link Sun Jan 4, 2009
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