The High Court will once again be treated to the unseemly spectacle of rival estate agents arguing over the same client, in a case that could change the way agents’ commission is paid.
Last week Judge Hallett agreed to re-examine the right of Countrywide Assurance’s subsidiary Faron Sutaria to a commission payment after Foxtons successfully reintroduced a buyer to a property in Chiswick, London W4.
The case will inevitably put the existing law, including the leading authority of John D Wood v Dantata, under the judicial microscope.
Faron Sutaria was originally instructed as sole agent for the property, 17 Grove Park Gardens, which was on the market for £950,000. The company introduced prospective buyers, Mr & Mrs Osborne, who offered first £800,000 and then £825,000.
Both offers were refused. The sellers – a Mr and Mrs Young – dropped the sole agency and instead entered into a multi-agency agreement, retaining Faron Sutaria as one of their advisers.
When the Osbornes were re-introduced by Foxtons, the purchase went through for £850,000.
Faron Sutaria claims commission, saying it introduced the buyers during the period of sole agency.
But Judge Hallett said she was satisfied that the Youngs had a reasonable chance of beating Faron Sutaria’s claim. They argue that commission should only be charged if an introduction actually leads to a sale.
EGi News 17/8/99
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