Estate Agents Fees Court Battle

Foxtons loses battle for fees against Hamptons. We understand that Fxtons introduced a buyer who then brought it through Hamptons. Foxtns won initial legal claim for the fee (circa £20,000), then on appeal the judge over-ruled and Hamptons won.

Chard London estate agents view is that the company that is "instrumental" in agreeing the sale should be entitled to the fee. This isn't always the same as the company who might have first shown the property. Selling flats and houses in London is an involved process where the buyer needs to have confidence in the agent's ability and integrity - there's certainly more to it than just driving someone around to view and asking if they'll buy it.

We don't know the facts behind this particular case, nor the reasons why the buyers opted to buy through the other estate agent, and much less the potential ramifications for the industry. Our fear is that unscruplous agents and buyers will collude to make offers through agents that have done nothing to facilitate the sale, but are prepared to lower their commission fees "if you do the deal through me". This is not good news for the London estate agency industry.

Full story in the Times.