The High Court has refused an appeal for summary judgment after an estate agent claimed commission on a sale when the buyer bought the same property through a second agent.
Faron Sutaria was originally instructed as sole agent in respect of property in London W4, which was on the market for £950,000. It introduced a prospective buyer who offered first £800,000 and then £825,000.
Both offers were refused and the sellers subsequently terminated the sole agency agreement and instead entered into a multi-agency agreement in which Faron Sutaria was one of the agencies.
The original prospective buyer was then reintroduced by another agent and this time the purchase went through for £850,000. Faron Sutaria claims it is entitled to commission on the basis that it introduced the buyer during the period of sole agency.
However, dismissing its bid for summary judgment Hallett J said she was satisfied that the defendants had a reasonable prospect of success.
In the leading case John D Wood v Dantata it was held that “&the fact one agent introduced a person who ultimately purchases after a later introduction by another agent will not necessarily entitle the first agent to commission. In such a case the court must determine which of the two agents was effective cause of the transaction taking place.”
The case will now continue to a full trial.
Faron Sutaria & Co Ltd v Young and another, Queen’s Bench Division (Hallett J) 12 August 1999.
PLS News 16/8/99
