geedee

We had our house on the market for over a year with a local agent. He worked hard to sell it, but nothing in this area was moving. The contract expired December last year, and we decided to keep it off for the time being.
Out of the blue, another agent came knocking on our door a couple of days ago asking if we were still interested in a sale, as she had a client that was very interested in buying. They're visiting tomorrow.
I said that I would let our agent know, and she said there was no need.... the contract had expired and there's no sign up outside. She is going to offer a "48 hour mandate" if an offer comes up, and she will sell for 4%. Our deal with the other agent was 6%, obviously split 2 ways with the other agent.
While we would save 2%, which is a lot of money to us, I feel bad about not letting our agent in. He did do a lot of work, advertised it in places that cost him money, and paid for it to go on MLS. The new agent accessed it through MLS as an "expired listing".
The other thing is, agents here seem to do a lot of the work solicitors do in the UK, and I'd feel a bit exposed without our own agent looking after our interests.

Anyway, it's a dilemma....any advice out there?

Almost Canadian

It's a judgement call for you to make. I have little idea of the legal niceties in Quebec but, in Alberta, agents do nothing like the work that solicitors do in the UK when performing a conveyancing transaction. In Alberta, they insert data into pre-prepared contracts, something that most with a brain could do on their own.

Auld Yin

So does the Alberta method work? How many conveyancing transactions are overturned because of legal issues?

bats

As the agent found it on MLS then isn't the original agent due their fee anyway as the sale was found because of work they had done? I seem to remember something like that in the contract with our agent.

Without the original agent you will have to do the price negotiating yourself etc, as you say it can be awkward and depends on how confortable you feel with that.

Auld Yin

You should check closely the contract you had with the first agent. IIRC I read fairly recently of a situation where an agent sued for commission on a sale that took place after his agreement with the sellers had expired, because there was a post agreement time period quoted in the contract.

Greenhill

Another way of looking at it is that he had a year to sell the property and failed. I'm sure there's an inconvenience factor that should help balance against any feelings of loyalty you have for him.

IMHO estate agents, lawyers and accountants are not charities. Would you, instead, donate the money to a charity? If the answer is no, then why give it to him if you're not contractually obliged?

bats

That's what I said but you explained it properly.

Almost Canadian

That depends upon one's view. The systems are very different. The Canadian system is faster, the UK system provides better protection.

For example, in Alberta, there is no investigation into, for example, issues with neighbours or explicit disclosures of the state of the property. In Alberta, there is a requirement to disclose known large major and that is only implied.

The purchase contract used by agents is written in favour of the vendor, even though, typically, the initial offer is made by the purchaser. No one has ever been able to explain to me why that is.

I would imagine that the total fees (agent's commission, lawyer's fees) in Canada are higher than their equivalent in the UK, but that is due to a lack of competition over here.

Almost Canadian

Not only that but, if the efforts of the agent resulted in the sale, you will likely be responsible for the agent's fees. If the new agent became aware of the property due to the listing on MLS (the efforts of the agent) it would be hard to argue against paying the commission. Proving that is another matter entirely.

geedee

Thanks all for your input.... there are some very good points there.

Legal matters aside, from a moral point of view, our agent paid out a lot of his own money to get this sold.... MLS, adverts, professional photographer etc. I was a little alarmed that this new agent could treat one of her own so callously!

I'm going to check the contract again....

Novocastrian

If it were me, legal stuff aside, I'd offer the old agent a split the difference sort of thing. i.e. 2% instead of 3. That way s/he recuperates the outlay plus a good amount and you save 1% of the selling price.

Just my 2 euro centimes worth.

PS I hear it's been snowing a bit over there? Quelle domage.

Greenhill

Splitter

Novocastrian

Siouxie

Unless it is 180 days since his contract expired I believe he would still be entitled to his commission.

http://www2.publicationsduquebec.gou..._73/C73_A.html

9.8. Any agreement binding a natural person, for a fixed period after the expiry of the contract, to remunerate the broker even if the sale, rental or exchange of an immovable is made after such expiry, is void.

The first paragraph does not apply if the agreement provides that remuneration is due where

(1) the contract is exclusive;

(2) the sale, rental or exchange is made with a person who had an interest in the immovable during the term of the contract;

(3) the transaction is carried out not more than 180 days after the expiry date of the contract;

(4) during that period, the natural person did not enter into any exclusive contract for the sale, rental or exchange of the immovable with another broker.

1985, c. 34, s. 224.

Apart from that, I would not trust an agent who disregarded the work your former agent had done. Perhaps a re-negotiation with your agent to a 4% fee would work for both of you, and make you feel a bit better morally?

JonboyE

If you go with the new agent what do you do if they say to you that there is a problem with the home inspection? They advise you to drop the price by $10,000 to make sure the deal goes through. How do you know this is absolutely necessary, or just the realtor doing a good job for their client?