agent problem

Hello,

I have had a really bad feeling about what happened to me whilst signing for a flat recently and id like the opinion of the people on this board.

I instruced my agent to put an offer in on a property at x amount. So i went down to the office to give a deposit. whilst i was there my agent told me that the seller was not willing to sell for this price but another agent was going to call her and help me get a better price. I was then told that the agent was about to call and would i be willing to give some extra bonus if they secured a good deal. At this point i was in a dilema as i didnt want to say no and annoy the agent who was about to do my negotiation. SO i asked how much to which the reply was 8k i was very annoyed at being asked this at such a criticle point in the negotiation process but didnt want to annoy the agent about to negotiate on my behalf, so i agreed. the agent then told me that they had secured a price close to what i had

told her to offer in the first place. which pleased me. i was then told that she would call back again and try to gat a bit more off the pirce - and if she suceeded would i be prepared to give an extra 1% commision instead of the 8 k again i agreed (stupidly) because i wanted her to negotiate the lowest price and signed a piece of paper saying so.

anyway i now left feeling like i have been robbed and cheated - and its keeping me up at night. I feel that it the agents responsibility to negotiate the best price anyway and i really resent being asked for more money at such a critical stage in the negotiations. Sure i was foolish to agree and sign . i was wondering if anyone else has had a similar experience and how they handled it . Or what action i should take if any ?

Thanks in advance

Hi Pauly,


The most important question is, had you already signed an Estate Agency Agreement? This would be a pink form - Form 4. This form should specify the amount of commission payable to the agent.


You are absolutely right. The agent was working for you and should have been acting in your best interests. The fact that the lower price would mean lower commission is just her tough luck.


The best people to talk to are the Estate Agents Authority. The agent may have been breaching the EAA's Code of Ethics and Practice Regulations, but I don't think she did anything against the law, because she was negotiating with you for a higher commission, she didn't force you to accept it.


Did you get the flat?

Linda

I am sure there are significant legal and ethical issues at stake, sent you a PM to assist with some issues. Summary, talk with a solicitor immediately to put your mind at ease.


Also, with respect, don't agree that agents are losing money by getting price down - well they are but it is a pittance as compared what they lose if they lose the sale (1% from you, 1% from seller). Hence the reason auctions are considered to be against the interest of the seller (and yes could reaonably argue the other way), but if an agent I would rather 2% of $2m than nothing of $2.1m. And I think buyers are typically harder to find, so once you have the cheque out the agent typically knows what a seller would accept and essentially money for old rope. Agents usually only want to finalise the deal, the price often is irrelevant, whatever it takes to get parties to agree.

Pauly, here is the relevant extract from the Estate Agents Authority Code of Ethics:


"Estate agents and salespersons, in engaging and accepting an appointment as an agent, should protect and promote the interests of their clients, carry out the instructions of their clients in accordance with the estate agency agreement and act in an impartial and just manner to all parties involved in the transaction."


As I mentioned before, you should have been asked to sign Form 4, which should have specified the amount of commission.

guys the feed back ive received so far has been great - Thank you so much