Exclusivity with estate agent.

I want to sell my property and I had a spanish estate agent from the village look at it. I told him that I have other agents involved. He doent speak english & My spanish it not good at all. He asked me to sign a form giving him permission to promote my property. He brought some spanish people to view the property. the next day an english agent brought the same people. They told me that they coem with the english guy because he advertised the property alot less. 5000€ less. Now the Spanish agent is all uptight because he says he will denounce me because he has exclusivity. He sent me a copy of the paper I signed which he had filled in the details later & and metioned a 5000€ commission and at the top of the page in Red it says Exclusividad.( I think he added it later). I would never agree to that & would have never signed exclusivity to anyone. The english guy charges 2000€ to me and not the buyers so it seems more fair to everyone.The Spanish agent now wants to denounce everyone involved and is intimidating everyone. the fmily who want to buy my property are frightend as well as they signed a paper at the agents office and now he says that he has eclusive rights over the sale wiith them. The english agent is being quite nice in it all and not demanding anything or making threats.

My question is this. are these exclusivity contracts legal? there doesnt seem to be any laws quoted and when i signed it I was not aware it was a binding document. It looks to me that the spanish agent has manipulated the document after I had signed it. Can someone please advise.

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He sent me a copy of the paper I signed which he had filled in the details later & and mentioned a 5000€ commission and at the top of the page in Red it says Exclusividad.( I think he added it later).

I guess you did not get a copy of the contract at the time you signed it.  If so, that was risky and I guess now you are bound by it.  

In any case if the potential buyers were introduced  to the property by two agents I would assume, and it would be reasonable, that the first should get the commission.  This is why I have said in earlier posts, that the contract with an agent should always show the price the property will be offered at and the rate of commission, either to be included in the asking price or as an extra.

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Thanks,

              I know it was foolish( now) just to sign a paper, but at the time in my broken Spanish he told me it was a permssion to promote the property. There was no metion of the 5000€ which I would never agree too as I think its extortion I told him what I wanted. when the paper came through in the email it had in bold letters at the top Exclusividad which again I would not have agreed to. I fully understand the people buying comming back with the other agent as the property was alot cheeper through him. If they were both the same price I can understand this why this spanish agent would get upset. The fact that he is threatening and not being reasonable is making me stand my ground. I did not agree to those terms and even if this falls through I dont want that men near my property again & I dont want him to try to sell it at anytime. I need to know if there is any legal right that he has even though he has manipulated this document. I dont have a copy unfortunatly because I trusted him at the time, so I need to know if this type of document stands in Spanish law or is it just a non legal non binding (even though manipulated) agreement.

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Surely if the same people are shown the house by 2 agents, thet can both claim the fee?

 

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Oooooooh, so if 20 angents show the same house and the fee is 10% I have to pay the price of the house to the agents.... what if the same agent shows the same clients the same house 10 times, does he get to keep all the money of the sale...

come on!

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Sorry, Sorry got a bit sarcastic there. what im realy looking for is some sort of leagal indication as to weather these exclusivitys hold any legal weight.

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Nicky, I'd honestly see this as a matter for a lawyer - you should ask around for a recommendation. Obviously if some people have some real expertise on this Forum that could be helpful too. We've been threatened in the past by a buyer's lawyer and it is very nasty when someone is threatening to sue you. We chanced upon some information in a newspaper which we got our lawyer to threaten the other lawyer back with and we never heard from him again.

So, really, you're looking for this kind of thing - an answer you can give to him to get him to back off, and a lawyer may be able to sort this out. In the meantime, you obviously need to hold off paying either agent, as you haven't sold your property yet! I'd concentrate on getting the sale to go through first. At the very least, you could end up making the guy wait a very long time and having to spend money on legal fees himself. Another option to have in your back pocket, is the idea that you could compromise at the end and agree to pay both agents 1,000 euros each, for example... But I would only give him that money if he signed a legal document that he wasn't going to pursue you for any more.

Hopefully, as I say, some others might know the specific law in this area - the agents on the site are likely to have some good knowledge on this. All the best.

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Why don't you just tell the agent you have decided to take the house off the market and not to sell it. After a month or so you can change your mind again put it back on the market with which ever agent you wish......

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I want to sell my property and I had a spanish estate agent from the village look at it. I told him that I have other agents involved. He doent speak english & My spanish it not good at all. He asked me to sign a form giving him permission to promote my property. He brought some spanish people to view the property. the next day an english agent brought the same people. They told me that they coem with the english guy because he advertised the property alot less. 5000€ less. Now the Spanish agent is all uptight because he says he will denounce me because he has exclusivity. He sent me a copy of the paper I signed which he had filled in the details later & and metioned a 5000€ commission and at the top of the page in Red it says Exclusividad.( I think he added it later). I would never agree to that & would have never signed exclusivity to anyone. The english guy charges 2000€ to me and not the buyers so it seems more fair to everyone.The Spanish agent now wants to denounce everyone involved and is intimidating everyone. the fmily who want to buy my property are frightend as well as they signed a paper at the agents office and now he says that he has eclusive rights over the sale wiith them. The english agent is being quite nice in it all and not demanding anything or making threats.

My question is this. are these exclusivity contracts legal? there doesnt seem to be any laws quoted and when i signed it I was not aware it was a binding document. It looks to me that the spanish agent has manipulated the document after I had signed it. Can someone please advise.

 

Now maybe this advice wont suit you, or help you, but here's my penny's worth for what it's worth.

You could take the house of the market and tell both agents you changed your mind, of course if you have had it for sale for a fair while you wont like that idea, but if as you say two people were after it then it seems to sound a good buy, so maybe you wont have a problem selling it in a couple of months time, "When you have changed your mind" and gone to another English agent.

Now if you think the agent added the exclusive bit later on and your 100% sure, ask to see the carbon copy, every house i have sold has had a carbon copy, or two, sometimes three, you cant forge anything properly on a carbon without it showing up a fair bit, even if he wrote another duplicate out you should be able to see if it's your signature or maybe some other false bits.

If you did do any of this, and you did go to see him take a superb Spanish speaker with you, English one would be better in your case.

If everyone is now frightened because of the way this agent is acting, and the way he's going about it, this sounds like he knows he has done something wrong, or what has happened wont stand the test of law, so if he bullies everyone enough they will give in without to much searching into the paper work, and or the way he's conducting his business. People in the wrong tend to do this, if your (Spanish agent that is) in the right and know you would win what does he  have to lose?

So perhaps if you could maybe call his bluff he might back of, but looking at this the worse way what could happen if you ruffled his feathers a bit, he knows he's going to lose because he ain't straight, or he sticks to his guns because what he did is upright and honest, and if you back of, pay the money,  you would sell the house and all you really have lost is a bit of money,  and if he backs of..You win.

 

 

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Nicky, sorry but all the ‘good ideas’ you are getting here are a waste of your time.  None of us has been able to read the contract you signed and, therefore,  best guessing is useless to you, with ‘your real world’ problem.

The only sensible course is to seek professional advice from a professional who has studied the facts of your problem and ignore the rest.  If you finish up in court,  none of us here will be standing beside you sharing the out come of 'our advise' !

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Nicky,

Personally I think Johnzx's comment's are wrong, this is the true British reaction and a waste of time and money.  I tend to go more with Baz's thinking, kind of "when in Rome"...

A lot of Estate Agents in Spain are totally corrupt by our standards.  They have no business ethics and are unregulated.  Yes you've made a big error by signing a document that you have not copied, but the situation is not that bleak.

As the Spanish agent was the first to introduce the buyer you are probably obliged to give him first crack.  So first off I would write a short letter in English and have it copied into Spanish stating your case to the Spanish estate agent.

Within the letter you would be telling him politely that you do not believe you gave him exclusivity and that was certainly not your intention.  Include the fact that he failed to provide you a with copy as is normally expected and therefore there is no real evidence as to what was really agreed etc etc.  Then finish by saying you still wish to sell the house and will do so via him only if his terms are reasonable and as were verbally agreed when you met - stating what you want etc.

So you put the ball into his court.  In the worst case scenario, if he is unreasonable and rants - just say OK sue me.  But he has nothing to sue you for!   You have not yet agreed a deal through the other agent.  My guess is that having called his bluff after a few days he might start to think he's going to lose out completely and he'll suddenly be all smiles and more amenable.

Going this route has certain advantages, not in the least the fact that you are stating your case clearly in Spanish which would be useful if it went to court.  No one knows but I really don't believe it will as if you let the Spanish guy you are not going to be intimidated he will back off.

Good luck.

 

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Acer,

                     sorry, but your route could easily end up in court and that is the last thing Nicky needs.  That kind of 'advice' is precisely what I said was not useful to Nicky, she needs to know for sure, as she is clearly very concerned.

 

You say, I tend to go more with Baz's thinking, …

Baz said , “Now if you think the agent added the exclusive bit later on and your 100%  sure”

 

Thinking something and at the same time being sure are not compatible.

 

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Johnzx,

With respect your suggestion achieves very little.  In my experience if you involve solicitors in this kind of situation you will not find a compromise.  More likely they will escalate the problem.  Do you really expect the Spanish guy to just roll over?  No it'll likely be a lot of time and money without any progress.

But if as a first step Nicky puts her case politely but firmly in a letter in both English and Spainsh it will do no harm whatsoever.  It makes her position clear and El Shifty & Co may decide that they are not going to extract more from Nicky than had been verbally agreed.  They may then want to do a deal knowing that they might get nothing if the sale falls through.

In this sort of situation you always want to state your case clearly, politely and firmly in writing.  It's good evidence and makes the other party think - which they often don't do during a verbal exchange.  It's also about about regaining control, otherwise the Spanish guy will continue to wave his bit of paper.

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Acer:-  It's also about about regaining control, otherwise the Spanish guy will continue to wave his bit of paper.

 If it's a legally binding document, which I believe a 'sole agent contract' to sell probably is, that is why there is a writen contact. What then ?  I am sure no matter how polite one might be be is not going to tear it up.

In the UK such a contract,  giving an agent sole rights to sell is certainly binding.

Please note I have no high hopes for lawyer's ablities,  and in buying and selling  over 25 years in Spain I have never used one.  When the 'other side' have, it has always lead to 'problems' .  But in this case, Nicky needs to know where she stands.  She does not have to employ a lawyer just get professional advice (as good or bad as that maybe).  She needs to know, if she sells without involving her sole agency, if she will have to pay them, as well as any other agent.

 

 

Just for comparison.: 

QUOTE: 

UK contracts 

Sole selling

This means that the estate agent is the only agent with the right to sell your home during the term of the contract. The estate agent is entitled to payment, even if you find a buyer yourself. We recommend you don't sign a contract with sole selling rights.

Sole agency

Sole agency is the most common estate agent contract. This is the same as sole selling with the exception that, if you find a buyer yourself, you don’t have to pay the estate agent fees.

However, if sole agency contracts are open-ended, an agent can still claim commission if it introduced a buyer - even if the offer is made months (or potentially years) after the estate agent stopped marketing your property.

 

 

 

 

This message was last edited by johnzx on 20/10/2013.

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You say, I tend to go more with Baz's thinking, …

Baz said , “Now if you think the agent added the exclusive bit later on and your 100%  sure”

 

Thinking something and at the same time being sure are not compatible.

 

Correct none of us are their to help Nicky,  she wanted some advice / idea's on what to do about this before she went to a solicitor, which i have no doubt is in her mind and she knows thats the way forwards. 

Nicky herself said it looked like it had been added on after and should be able to tell if this has happened as well, so she's doing a bit more then thinking it had been added to even suggest this, and no doubt if this is the case and he has forged it, suggesting this  to him and getting the document fully checked over could be enough to make him back of.

Better to have some advice / ideas, good or bad then no advice at all, after all this is not some kind of life or death situation, just something that will get sorted out one way or the other, specially when it's free advice, she doesn't have to use it but it's stored in the ole grey matter perhaps for a later date to bring to the front.

 

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One signs a piece of paper requested by another then a written contract between 2 parties has occurred .

To walk away without a copy and expecting a third party , who wasn't a witness , to choose who is telling the truth is impossible and the case, without other substantiated evidence, will undoubtably be found in favour of the person with the contract regardless of whatever the truth is or what might have subsequently been added to the contract.

It was also mentioned the Spanish buyers also signed a contract with the estate agent.
Without seeing the paperwork one can only assume it was to stop them buying directly from you or via another agent without his prior knowledge , possible within a certain time frame.
This is certainly how it works in UK.

However in order to attempt to buy the property cheaper not only did your prospective buyers engage another agent but returned to your house the following day.
Fortunately once the the 2nd agent realised the situation he chose the ethical route and backed off.
Had you signed a contract with this other agent ?

If the buyers are serious one option would be to request all parties meet to discuss terms and conditions but failing an agreement , or risk going to court, then the agent who first showed your property has the deck stacked in his favour.

Just my personal opinion as a similar situation happened to me years ago , but in UK.

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I'm with the (majority) "try to sort it yourself" side on this one. If you were to ask a lawyer what the odds are of you winning/losing, he'd probably give it a 50/50  - which in my opinion, isn't good enough to warrant the potential expense and hassle - and likely loss of the sale in the meantime. That's probably an optimistic guess actually, because if forced to fall one side of the fence, a Spanish court will likely fall on the side of the Spanish party in the case. Sorry for any offence caused.

Someone said "you're looking for this kind of thing - an answer you can give to him to get him to back off"...just a thought, but did this sleezebag have a current nota simple for your property? Does he have a copy of the energy performance certificate? Perhaps he's not actually in a legal position to offer your property for sale. If so, tell him to pi55 off - his "contract" is probably worthless.

If it was me*: 

I would try to contact the would-be buyers direct and suggest you sort out a deal privately, because the agents are getting in the way. The only (and possibly insurmountable) problem with this is that you have mentioned that the buyers are now nervous, and probably would not like the idea. If they were typìcal Spanish, they would probably have already contacted you direct with the same suggestion though.

At the end of the day, if they want it enough, they'll buy it through the original agent and pay the extra. Leave it up to them.

*this is just my opinion, does not constitute legal advice and should not be taken as such 

 

This message was last edited by Roberto on 20/10/2013.

This message was last edited by Roberto on 20/10/2013.

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Can you not take it off the market for a couple of months without penalty?

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But presumably you'll lose the sale.

I know a little bit about contract law and it's not as simple as stated here.  The "contract" that the Spanish guy has is far from the end of the story.  It sounds like there is good evidence to suggest it is totally invalid.

I like the EPC comment as a possible extra also.

In my mind involving solicitors in this situation is a sterile exercise.  Keeping the prospective purchaser happy is most important and you don't want to scare them off either.

There is no perfect solution - it's the sort of situation that you have to play by ear, but the starting point has to be a well written letter that sets the record straight.  Contrary to Johnzx's comment if written correctlt this can do absolutely no harm and may help to pave the way for an amicable solution.

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I tend to agree - YOU want to sell the place, the buyer wants to BUY the place, and when all is said and done, I'm sure the original agent would rather get a sale, at whatever commission you can agree on, than let it go altogether. Perhaps al three parties should just sit down and thrash it out over a coffee?

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