I agreed with an agent for a sliding scale of commission on his signed agreement to sell my investment property. The agent received an offer for my property of $545,000 which put him at the bottom rate of commission - 1.7%: (He originally assured me he would get "over $600,000", which would have paid him 3%). I accepted the offer of $545,000. But the agent told me by email he was dissatisfied with the agreed commission rate at that offer and he required an additional $735 commission (to take his total commission from $9,265 to $10,000) if I intended to accept this offer and go to contract. Otherwise if I was not prepared to pay the additional commission the agent would attempt to increase the buyers offer by another $5,000 in order to put himself into a higher commission band. The agent advised me that the buyer was at his limit at $545,000 and that asking a further $5,000 would probably loose the buyer; and in the agent’s written words “Yes if we loose the buyer (it is why it is) but I am a very hardworking agent and I deserve this fee”. This was a clear indication that in accepting the $545,000 I must pay additional commission over what was agreed to the agent or otherwise he would not accept this offer and I would risk loosing the sale in the agents personal pursuit of a higher commission. I consider I was coerced by the agent into increasing his agreed contracted fee. At the time I was in the UK and was given less than 12 hours to decide. I was under pressure, I couldn’t speak to the agent due to time differences so I considered in order to get the sale it best to agree to the additional commission despite feeling blackmailed into doing so. Agents have a fiduciary requirement to work in the sellers best interest. This clearly was not in my interest - I felt $545,000 to be a fair price and I did not wish to risk loosing the sale by trying to get more. Yet the agent clearly implied HE would not accept this offer and would attempt to get the buyer to increase it so he would make more commission, even admitting his doing this may loose the buyer! It is illegal for an agent to work against a seller. Yet I had been coerced into paying more than agreed by the agent in order for the sale to go through. Before and throughout the sales campaign I was under constant pressure from the agent to pay over $2,000 for Premier advertising which I consistently refused as I don't believe this has any positive effect for the seller: I believe it's mostly to the agents advantage in creating add on income whilst raising the agents profile at a seller's expense. There's little doubt in my mind the additional $735 is a cash gouge from the agent given the advertising one failed. In the big picture $735 is irrelevent and the issue here is the principle. Since the house went to contract I’ve refused to sign the re-adjusted Form 6 to the agent: I'm just waiting for the contract to settle before I make an official complaint (for what it's worth!) regarding this agent. This lies somewhere along the scale of unethical to illegal: I've had a brief converstaion with my lawyer about this, but in my mind it's $735 and I don't intend paying my lawyer's time which will amount to far more just to confirm what I already know, the agent shouldnt have done this! But I'm Interested to hear other people's reaction to this and from any others with a similar experience.
the behaviour does sound very unethical, but on the other hand youve made a lot of excuses as to why you accepted/signed the multiple increased commissions and fees, you need to take some responsiblity for it
what does the contract say ? move on. going to spend way more than $735 for "principles". a lawyer friend of mine says he loves people who want to fight for principles. the costs can be enormous and no guarantee of a win.
Sounds like the agent asked you to vary the contract and you agreed. End of story. You were not coerced. 12 hours to agree is ample time to consider it, 5 min would have been enough. You could go and get legal advice, but it would cost you more than that. Or you could just refuse and see if he would be bothered to initiate court proceedings against you, and then make a settlement offer - but the legal fees here would be more than the $750...
I pretty much agree with this. I also think from what's been said so far, you could have literally instructed the agent to accept the $545k offer and there probably wouldn't have been any other real choice for the agent but to do so.
Or rejected the offer and made the agent work for their commission. You're not a charity, you don't care about the purchaser's financial position or if the agent won't be able to drink Verve with his Pambula rock oysters. The agent won your business based on the appraisal, marketing package and their presentation to you, what has changed from signing up and closing a deal?
