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TSKyochonnom P
post May 13 2022, 04:44 PM, updated 2y ago

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Hi, I really appreciate legal advice on this issue.

25/Feb: Set up house viewing. Both me and spouse love the house and decided to proceed with putting deposit.
27/Feb: 3% deposit paid.
28/Feb: Signed offer of purchase letter.
2/Mar: Seller signed the letter.
7/Mar: Proceeded with loan application through agent but was on hold cause seller claimed the geran eaten by termites.
9/Mar: Seller refused to sell the house and wanted to terminate the contract.
1/Apr: After 21 days from signed offer of pruchase letter; I asked lawyer to send LOD to seller for compensation. Seller ignored all text from agent. But lawyer confirmed the seller has received the LOD.
26/Apr: Owner revert and said he was cheated by agent and did not know he would have to pay compensation if he cancelled. (The terms was on the offer of purchase paper which he signed on hardcopy). But, seller agreed to pay up negotiated compensation.
10/May: Seller claimed that he signed selling exclusivity(?) to another agent and he will proceed with selling the house. So my agent said the commission will be 50-50 between his agency and the exclusive agent.
13/May: The other agent claimed that the seller actually already signed with them and they have another buyer who is now already applying for loan. The exclusive agent refused to mentioned the date offer of purchase was signed.

I dont know how to go from here. Please help me… I need advice…




mini orchard
post May 13 2022, 05:14 PM

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QUOTE(Kyochonnom @ May 13 2022, 04:44 PM)
Hi, I really appreciate legal advice on this issue.

25/Feb: Set up house viewing. Both me and spouse love the house and decided to proceed with putting deposit.
27/Feb: 3% deposit paid.
28/Feb: Signed offer of purchase letter.
2/Mar: Seller signed the letter.
7/Mar: Proceeded with loan application through agent but was on hold cause seller claimed the geran eaten by termites.
9/Mar: Seller refused to sell the house and wanted to terminate the contract.
1/Apr: After 21 days from signed offer of pruchase letter; I asked lawyer to send LOD to seller for compensation. Seller ignored all text from agent. But lawyer confirmed the seller has received the LOD.
26/Apr: Owner revert and said he was cheated by agent and did not know he would have to pay compensation if he cancelled. (The terms was on the offer of purchase paper which he signed on hardcopy). But, seller agreed to pay up negotiated compensation.
10/May: Seller claimed that he signed selling exclusivity(?) to another agent and he will proceed with selling the house. So my agent said the commission will be 50-50 between his agency and the exclusive agent.
13/May: The other agent claimed that the seller actually already signed with them and they have another buyer who is now already applying for loan. The exclusive agent refused to mentioned the date offer of purchase was signed.

I dont know how to go from here. Please help me… I need advice…
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Since the seller agreed to pay compensation and agreed by the buyer, the deal is considered aborted after payment.


TSKyochonnom P
post May 13 2022, 05:28 PM

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QUOTE(mini orchard @ May 13 2022, 05:14 PM)
Since the seller agreed to pay compensation and agreed by the buyer, the deal is considered aborted after payment.
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Sorry on
26/Apr: He claimed he agreeed to pay but has yet to pay.

10/May: He later then claimed he signed exclusivity to another agency before i even viewed the house but he wanted to retract the termination and agree to sell the house to me.

13/May: The exclusive agent said they now had new buyer who already signed purchase of offer with them.. which the exclusive agent refuse to disclose the date seller signed the letter.

mini orchard
post May 13 2022, 05:40 PM

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QUOTE(Kyochonnom @ May 13 2022, 05:28 PM)
Sorry on
26/Apr: He claimed he agreeed to pay but has yet to pay.

10/May: He later then claimed he signed exclusivity to another agency before i even viewed the house but he wanted to retract the termination and agree to sell the house to me.

13/May: The exclusive agent said they now had new buyer who already signed purchase of offer with them.. which the exclusive agent refuse to disclose the date seller signed the letter.
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If seller dont pay the agreed compensation, then the buyer have to take legal action to compel him to pay.

Buyer cannot force the seller to sell if he changes his mind for whatever reasons. The only remedy is the agreed compensation for the breach as provided in the offer letter.

Exclusive agent have the final say on who he wants to sell the property. If seller 'undercut' the exclusive agent, then he has to pay full commision to the agent.

Exclusive agent is not answerable to your agent. If you want to know the date, you have to ask the seller. If the seller cannot tell the date, meaning he has not sign anything.

Updated ...

Your and exclusive agent problem are partly because of the seller. The blame should not fall on the exclusive agent. The seller should have told your agent about the exclusive agency.

Your agent is partly to be blamed. If he is experienced in the line, he should ask the seller whether the seller signs any exclusive agency. Sometimes the seller is not familiar with estate agency jargons.

This post has been edited by mini orchard: May 13 2022, 06:26 PM
e-lite
post May 13 2022, 05:51 PM

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If you already engage lawyer, why not ask your lawyer for the next step?
TSKyochonnom P
post May 13 2022, 06:24 PM

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QUOTE(mini orchard @ May 13 2022, 05:40 PM)
If seller dont pay the agreed compensation, then the buyer have to take legal action to compel him to pay.

Buyer cannot force the seller to sell if he changes his mind for whatever reasons. The only remedy is the agreed compensation for the breach as provided in the offer letter.

Exclusive agent have the final say on who he wants to sell the property. If seller 'undercut' the exclusive agent, then he has to pay full commision to the agent.

Exclusive agent is not answerable to your agent. If you want to know the date, you have to ask the seller. If the seller cannot tell the date, meaning he has not sign anything.

Your and exclusive agent problem are because of the seller.
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Thank you for the reply. I never forced him to sell. It’s just that once seller received LOD, he agreed to compensate but then change back his mind and willing to sell so the payment never happened. But now comes another agent who has another buyer.

I am so confused. The seller now agree to sell but also has two signed offer of purchase with both buyer paid earnest deposits. Mine was signed first.

So, even if both are signed.. the exclusive agent has rights to choose buyer? Is this correct?

If the other buyer is chosen, does this mean that the seller has breached my contract and still need to pay the compensation?
mini orchard
post May 13 2022, 06:32 PM

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QUOTE(Kyochonnom @ May 13 2022, 06:24 PM)
Thank you for the reply. I never forced him to sell. It’s just that once seller received LOD, he agreed to compensate but then change back his mind and willing to sell so the payment never happened. But now comes another agent who has another buyer.

I am so confused. The seller now agree to sell but also has two signed offer of purchase with both buyer paid earnest deposits. Mine was signed first.

So, even if both are signed.. the exclusive agent has rights to choose buyer? Is this correct?

If the other buyer is chosen, does this mean that the seller has breached my contract and still need to pay the compensation?
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In exclusive agency, any sale have to go through the exclusive agent, including if the seller knows the buyer personally.

If the exclusive agent has a buyer, obviously he will sign with his buyer to earn full commission. If he dont have a buyer, then he can choose to co-broke with your agent, meaning share commission on 50/50 basis.

Your seller has breached the offer letter and have to pay compensation .... either to you or the exclusive agent.

This post has been edited by mini orchard: May 13 2022, 06:34 PM

 

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