Estate Agent Clause

A question about : Estate Agent Clause

Hello - we are just negotiating with our EA and going through their T&Cs. One of the clauses they are saying is that we must still pay their fee in full if a buyer exchanges contracts but fails to complete.

I'm aware there are hefty penalties for buyers pulling out but I've never come across this before. Seems a little unfair no?

I'm also confused at what point do we pay EA fees is it after exchange or upon completion?

Thanks in advance!

Best answers:

• aside from the fact that it is really not going to happen, wouldn't you simply recover the cost from the buyer anyway?
• If you're not happy discuss it with them. That is if you've not signed anything.
  All terms are negotiable, if they won't budge then you don't sign and look for an alternative.
• Exchange of contracts is pretty much the point of no return. Both parties are legally bound to complete on the sale, so if one was to pull out you could sue for costs (ie the estate agents fees plus any other fees you have incurred).
• Normally the EA fee is paid on Competion (using the money received). If using a solicitor he will pay them.
  If the buyer fails to Complete, you sue the buyer for your consequetial costs.
• There are a million things to worry about when buying, and this isn't one of them
  It's unlikely to happen, but sue down the chain if it does.
• This is why I love this forum, I can always count of good, advice. Thank you very much folks, very helpful and put my mind at rest!
  Sent them a note let's see what they say.
• I'm not sure whether this is common practise, but I know an agent whose terms states that their fee becomes payable by a seller, even if a prospective buyer engages a solicitor the "seller" decides not to proceed with the sale, for whatever reason.
  Seems a bit harsh, as so many things could happen during a sale which lead to one party having to withdraw from it before exchange.