Who placed the seller at risk of dual fees?
This is the second question we consider when making a decision
An agent should not place a consumer at risk of paying dual fees and should take the appropriate steps when they are dis-instructed/instructed, to limit this risk.
If, during our investigation, we find that an agent has not followed these steps, which we consider industry best practice – this will affect their entitlement to the fee.
Even if they introduced the buyer to the purchase of the property, they may forfeit their right to their commission in full, or we may decide that they are only entitled to part of their fee, to consider the service issues.
When a consumer ends their contract with the original agent, the agent should:
provide the seller with a list of parties they believe they introduced (usually a list of people who viewed the property)
highlight to the seller, in writing, the circumstances when they may be responsible for paying the agent commission, referring directly to the part of their contracts this relates to, and reiterate their responsibilities
This is to make sure the agent has provided all material information that a consumer can expect in this situation and makes the consumer fully aware of their responsibilities.
All agents have the responsibility not to place the consumer at risk of dual fees
We expect a second agent to:
confirm with the seller if they have previously instructed another agent to sell the property
ask the seller for their contract with their previous agent, so they can check that the seller is not breaching the contract
provide a written statement that they are unable to confirm if the seller is in breach of their contract with the first agent, if the seller is unable (or refuses) to provide this information
ask the seller to provide the list of people who previously viewed the property (provided by their first agent). If the seller says they were not provided with this, they should ask the seller to contact their original agent for this information or the second agent can do this themselves
highlight the risk, to the seller, of paying more than one commission fee on the property’s sale
ask anyone who shows interest in the property whether they have previously viewed the property with the other agent
refer the sale back to the first agent, if a potential buyer who viewed the property through the first agent, makes an offer through the second, and provide this information to all parties
