20180627 What happen to the deal when I fire my agent, Part 1

20180627 (Wed)

Can you change your estate agent in the mid of a deal negotiation? Part 1 of 3.

Yes. The absolute answer is a resounding “yes”!

However, depending on the work done, the outgoing agent deserves to be compensated for the work done.

But, more importantly, there are two parts affecting this decision of terminating your agent. What happen to the original engagement to sell or let the property? Is the buyer or tenant at a disadvantage? Can you terminate the sale/tenancy when you terminate your agent?

Before we go to agent’s fee for work done, we need to safeguard the rights of the prospect buyer or tenant. So an important step of a sale or rental is collection of a consideration – booking fee!

Scenario 1 – Where there was already a booking fee collected.

Scenario 2 – Where there was no booking fee collected.

When there is already booking fee collected, that signified the work done in securing a tenant or buyer. At the same time, there was already a promise to sell or let of your property. So, although the principal – landlord or vendor, may still terminate the agency contract with the agent, the law affects two parts:

a. The contract with the tenant/purchaser.

b. The agency contract with the agent.

Tomorrow we will continue in more detail on these two issues.

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