Is there any way for the seller to cancel the contract within a certain period of time with no consequences? Looking at a place where the owner signed with the agent <12hrs ago so basically looking to cut out the commission.
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Cancelling contract with Estate Agent
- Thread starter Dr3xus
- Start date
D3x!
Banned
so you want to buy a place where the owner has signed with an estate agent and now want to cut out the comm? did you meet this guy through the estate agent?
Nope, it's in the area I'm currently in and was just referred by a neighbour. As luck would have it the owner just decided to sign earlier in the day with the agent. Apparently she has been trying to sell it privately its just bad timing I guess.
I'm basically just wondering if there's a clause/law where you can rescind the contract penalty free, thought a law of some sort was in place by default for all contracts signed within 24hours?
I'm basically just wondering if there's a clause/law where you can rescind the contract penalty free, thought a law of some sort was in place by default for all contracts signed within 24hours?
D3x!
Banned
hmm then to be honest I wouldn't know, don't know enough about the whole estate agent business. People shouldn't sign sole mandate contracts with estate agents.
fastesthamster
Senior Member
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Rent from the seller for 6 months until the contract expires, and then pay the difference in the purchase price.
Venomous
Honorary Master
That could work. As the sale will go through afterwards & the buyer did not view the house with the help of the agent.
Also let the buyer tell the agency that they have changed their mind can the contract be canceled as the ink is still drying, without any penalties ofcourse.
Romito
Expert Member
the estate agent will sue if owner triesto back out now. agreement to sell or buy cancellation always ends in penalties for the agreed byer or seller. Not an estate agent btw jus personal experience.
OMB
Mountain Man
you're on sticky ground depending on the agent and the wording of their mandate, some agencies have a penalty clause with regards the property being sold up to 6 months after the expiry of the mandate
Venomous
Honorary Master
when i looked at a mandate somtime ago it stated that you may not sell the house to anyone that they got to view the house, for a period of 6 months after the mandate ended. however it does not exclude you from selling to anyone else after that time. The OP should ask the seller to either read all the fine print or if the seller would mind if he reads it....
the rent to sell idea sounds pretty good
but to what OMB posted, a clause stating that the seller may not sell up to 6 months after contract expiry sounds a bit strange
I'm guessing there might be (as venomous pointed out) a clause saying that you may not sell to someone the agent showed the house to but does anyone know anything more about this?
And just to follow up on the rent to buy idea. Excuse the thinking (football transfer window just closed so still stuck in the mindset) but is it possible to draft up a rent with option to buy contract or am I completely dependent on trusting the seller upholding a verbal contract.
but to what OMB posted, a clause stating that the seller may not sell up to 6 months after contract expiry sounds a bit strange
I'm guessing there might be (as venomous pointed out) a clause saying that you may not sell to someone the agent showed the house to but does anyone know anything more about this?
And just to follow up on the rent to buy idea. Excuse the thinking (football transfer window just closed so still stuck in the mindset) but is it possible to draft up a rent with option to buy contract or am I completely dependent on trusting the seller upholding a verbal contract.
Venomous
Honorary Master
There are contracts as per what OMB posted - sadly.
Yes you can draw up a rent to buy contract. Best to get a property lawyer to draw it up for you.
fastesthamster
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*edit* Might have to be a "gentleman's agreement" so as not to alert the estate agent.
Last edited:
OMB
Mountain Man
Sorry my post was done in haste, what I didn't clarify was that this holds true if the buyer is introduced to the property by the agent, here's an extract from the clause from a sole mandate agreement:
"the agency will be entitled to the brokerage plus VAT as set out above, if the property or the legal entity is sold through any source whatsoever during the said period (period of the mandate) or if any purchaser introduced during this sole agency purchases the property or the legal entity within 6 months of the ending of this sole agency, or if any tenant introduced during the period of the sole agency, subsequently purchase the property or legal entity"
Did the homeowner sign a sole mandate with the agent or just a mandate? If it's just a mandate then the homeowner may make use of other agents and may sell privately without the (first) agent receiving any commission.