Estate Agents/Comission Fees

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
22/05/2009 11:21

Can anybody tell me can an Estate Agent keep the comission they have taken from a deposit if the developer never started the build......

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
22/05/2009 11:48

In TRNC ?



Of course......there are no rules !

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
22/05/2009 12:09

Maybe I should open an Estate Agents they are obviously making a fortune. Show someone a piece of land and some tempting pictures take a deposit and then take their comission but does it matter to them that the developer decides not to build, no of course not, they have got their bit and the builder has got his, as usual only the buyer is the loser

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
22/05/2009 15:00

Unfortunately the agent will argue that they have provided you with a service and therefore are entitled to their commission. If the builder does not build that is not something they can be held responsible for.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
22/05/2009 15:35

An Agent is the middle man. Their job is to help the two sides meet and usually once a deal is struck between the two sides, the agent gets his commission. It is not refundable and I see no reason why it should be.

ismet

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
22/05/2009 15:38

As the estate agents say they will take you through every step of the buying procedure with updates etc. how can they say they have given a service when nothing has materialised. Are we not right in assuming their cut is a percentage of the cost of the finished build, if this is not the case, their fee would be the same for everyone. They are obviously far happier to sell a £200.000 house than a £50.000 apartment for the payment they would get. Incidentally, the agent was and still is sole agent for the builder so does have some responsibility.

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
22/05/2009 15:48

An Estate Agent doesn't take the fee from your payment, they are paid separetly by the builder, or so it should be.



But invariably when you put your deposit down of, for example, £10,000 and the Estate Agents fee is £5,000 that he would claim from the developer, they only give the developer £5,000 but get him to sign to say that he has received the £10,000 and paid out £5,000 in commission, thus saving a paper chase.



This is something that needs to be tightened up and ended, or we only pay the developer direct any deposit then the Estate Agent bills the developer. It's then upto the Estate Agent to chase any monies owing to them through the courts.

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
22/05/2009 16:13

Hi Timothy - yes you are quite right, the agents took their commission before paying the builder the balance which makes it more difficult for us now to recover.



Elko - why say that you think they should not refund commission. A builder agrees to build say 30 houses and they take their commission from the deposit (which obviously they shouldn't, the builder should pay them) and then the build is cancelled!!!!! Very nice money if you can get it especially if they are sole agents for the builder, nice little earner, get the deposits, cancel the build and split the profits from the deposits.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
22/05/2009 16:30

msg. 8



As Timoty explained in msg. 7 the estate agent officially gets paid by the developer becaue they represent the developer. Hence if the developer defaults on the contract you demand back what you paid from the developer. So if they pay you back as they should, its the developer who has paid the estate agent out of his own pocket, not yours. The agent normally gets paid for the work they do and there is no reason to pay back anything for reasons beyond their control. However, if you have a direct legal link with the estate agent, you can stipulate your conditions as you like and it is up to them to accept or reject. Its a free country as they say and I hope they don't go further and say "its free for all"

ismet

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
22/05/2009 16:46

Hi Ismet, thanks for your advice. At least we now know it is the developer who needs to refund us and not both. Unfortunately we seem to be chasing our tails at the moment as the developer is denying payment has been made. Also the 4 contracts we signed all disappeared very conveniently for the agent and builder and the only proof we have of payment is our receipt from our UK bank.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
22/05/2009 19:08

Perhaps you should contact your NC solicitor about the agent.....for introducing you to the builder..who is proberly best friends with the agent...or...even..family!



You may have some kind of case against the agent.

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
22/05/2009 19:18

Thanks Stewart will probably give that a try as all else seems to be failing

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
22/05/2009 19:21

It may well get your money back from the agent..or...as a compromise, they may not deduct the money from you, if you buy another from them instead??

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
22/05/2009 19:23

The agent was acting on behalf of the developer so they can be best of friends, no conflict of interest there. It becomes another cup of tea if your lawyer is in a similar situation.

ismet

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
22/05/2009 19:45

Dear Ismet...with the greatest of respect...if the Agent takes a deposit from you, knowing, the developer is in financial trouble and the build will not get completed..you have a case against the agent.



If they are best of friends...this is more reason for the agent to be fully aware of the builders financial position...as you and I both know.



It only takes a few minutes to find out about any builder in NC.

ALL agents should have an obligation to their clients, over their mates!

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
22/05/2009 20:03

Hi Stewart, our agent is still acting for the builder so obviously knows the position there and yes, couldn't agree with you more, they should have an obligation to the client. As regards using the same agent again, think not - once bitten etc. However, all we want is our original deposit back so that we can move on as like lots of others, it is costing us a fortune to rent. We are not asking for compensation, just our original payment back, very simple, we didn't get a property so why should someone have our hard earned money.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
22/05/2009 20:34

Contact a GOOD solicitor.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
23/05/2009 06:42

re. msg. 15



"ALL agents should have an obligation to their clients, over their mates!"



Very true. In this instance, the client of the agent is the builder/developer. The agent is trying to sell the house on behalf of the developer and he is getting paid for his services by the developer.

ismet

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
23/05/2009 12:50

Thankyou Ismet...you have clarified that the full deposit should be returned Boerboel....you have clearly stated that the developer pays the agent..not the purchaser.



Therefore..the developer should repay in full....and...the agent, acting on behalf of the developer, should assist in it's recovery.



Note...all property I sell, my clients deal with me...I deal with the developer....the developers problems are mine, not my purchasers / clients.

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
23/05/2009 13:33

Thanks Stewart for agreeing that we should have our deposit repaid. When we asked the agent two years ago about refunding our deposit, the flippant reply we got was "sue the developer". We have consulted a lawyer who has not so far been able to resolve this for us but we will battle on.

britvic



Joined: 05/09/2008
Posts: 3039

Message Posted:
23/05/2009 13:38

Boerboel, I am so sorry to hear of you predicament, how awful, could you name this Estate agent? If you don't want to say the name outright, just do a sound alike. It helps to warn others.



Vicki

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
23/05/2009 13:55

Hi britvic - the advertisement at the top says it all ha-ha !!!!!!!!!!!!!!!!!!!!!

britvic



Joined: 05/09/2008
Posts: 3039

Message Posted:
23/05/2009 14:06

Hi Larry and Janice, I kinda got that from the other thread, so we are all in the same boat then? Actually my situation is not as bad as yours, at least I have a house, just needs work, and very silly things too, like for instance: the aircon unit hasn't been bricked or plastered properly, you can actually see outside from the inside, also the chimney stack isn't finished, the upshot of this is, birds are getting in and causing a huge mess, as anyone can imagine. The drive and path's are dangerous with big drops and uneven (just waiting to break an ankle) etc.....Like I say not major things but enough to aggravate. It was a very expensive Aviary.



Vicki

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
23/05/2009 14:26

Hi Vicki, sorry to hear of your problems but as you say, you have at least got a house - if you can call it that. We are now getting to be the same as lots of others in as much we are living on our capital and will end up not having enough to buy a house and probably risk getting thrown out if the gov doesn't think we have enough to live on. Unfortunately we are not 'rich brits' and had a budget which is diminishing far too quickly.



J & L

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
23/05/2009 19:00

Back to the top

britvic



Joined: 05/09/2008
Posts: 3039

Message Posted:
23/05/2009 19:26

Hi J & L, I have been out since my last post, I really am sorry to hear your most awful situation, do you have somewhere in England? Our 'Aviary' was only ever meant as a holiday home, which means we aren't their a lot, so the birds have kind of taken over, when we are here (UK) nothing gets done over their, phone calls and emails are not returned, it's so frustrating.



Vicki

boerboel


Joined: 02/05/2009
Posts: 290

Message Posted:
24/05/2009 11:34

Thanks everyone for your good advice, will keep plugging away and will let you know any developments in the future.