Paying marketing costs after agent resigns

Any advice would be much appreciated. I am selling my property in Launceston Tas, I signed the Sole Agency Agreement to sell with an agent who resigned today to go to another agency. This particular agent was disappointing, and there were many faults with her selling methods and made minimal contact througout (probably as she knew she was leaving). I was less than impressed with the overall experience with the agent and agency. I would like to change agency’s altogether given the experience I had, but they are telling me I am still liable for the marketing and advertising expenses. Nowhere in the contract does it say if she resigns or the place does not sell that I am still liable for the these costs which are $1565. Below is the clause from the contract regarding the marketing and advertising expenses:

10) In addition to the Commission, The Vendor must pay to the Agent the cost of all expenses incurred by the Agent for the purpose of delivering the services under this Agreement (including but not limited to marketing and advertising expenses) PROVIDED ALWAYS THAT such expenses are authorised in writing by the Vendor (in this Agreement or otherwise) prior to them being incurred by the Agent.

11) The Vendor hereby authorises the Agent to incur marketing and advertising expenditure up to the sum of $1565

Thanks

 

11) is where you authorised them to spend it;
now you need to find a clause to give you an 'out' ie if the property was not sold.

 

No wherever within the agreement does it say that the vendor is payable for management fees if the property doesn’t sell or does it say that I am not not payable. This was not explained to me I was merely given the document to sign. Surely if she has not fulfilled the requirements I don’t have to pay. I feel cornered to have to resign again with another agent at the same agency to avoid paying double agent fees.

 

well that’s what I am looking at. The new agent seems pretty switched on and prepared to get results, but I would like to change given this agency has left a bad taste. I just wanted to know if any one new what the legal requirements were when an agent resigns pretty much

 

Theyre not asking for management fees, just advertising, right?

She hasnt sold it so you dont pay the commission but paying marketing is fairly standard.

Most likely the contract is with the agency, not with the agent personally.

Your not looking for genuine advice, just for people to agree with you because you feel hard done by. But i would be surprised if you found a legal way to not pay marketing here. Just getting a lawyer to review will probably cost you a couple hundred.

If you dont trust the agent, pay the marketing fee and sign with someone else.

 

I doubt you read through the entire agreement given what you are saying.

 

1. You have signed an agency agreement for the sale. The agency can change staff at any time, the agreement is with the licensee.
2. The agency has discharged some of it's duties and incurred an expense.
3. How long has the property been on the market? What has been the feedback, if any?
4. If you stay with the same agency, there should be on additional marketing costs if it's a result of at action of the agency eg staff changes.

 

Yes I am looking for genuine advice, or if someone has experienced something like this in the past, its the first house I have sold so still learning. Condescending feed back however isn't appreciated.

 

Hi mate, the property has been on the market 120 days. So basically weather or not the place is sold, not sold or the agents move on, I am liable to pay costs already incurred by the agency. I should have made sure of this prior to signing. My issue really is the agent didn't meet her requirements of doing her absolute best to sell my place. She just listed it and hoped for the best and maybe contacted my 5 times in 4 months. Not looking for sympathy btw just genuine advice. Cheers

 

They are asking for the marketing & advertising

 

But what are you asking? You say you accept that you signed up to pay the marketing. But your saying that because the agent didnt get it sold you shouldnt have to pay it? There arent any cheap legal options here, if there are any options at all.

 

Based on that, most agency agreements are only exclusive for 90 days (you need to check this). If it is no longer exclusive, you can terminate the current agreement and negotiate with another agency for another period (having to bear costs again). Or you may consider a 'non-exclusive' so keep the existing agency on but getting another agency to market etc (you may negotiate a slightly different rate or get the new agent to bear the marketing costs). This may be different in Tassie.

 

Yea thanks mate. I will need to look into this further and chat to the new agent.

 

read the other comments not here to argue with a random online

 

I didn't receive any feed back to why the place was not getting any interest. Just told it was Xmas time and it is the quiet period then after Xmas, we just dropped the price and hoped for the best. The agents fee was quiet low which attracted me at the start. The new agents fee who has been tasked to take over from my current agency is a lot higher (she said she will honour the existing fee as a sort of compensation). I am kicking myself for not going with the other agency (who is also my managing agent) who I engaged with at the start and taking the cheaper current option.

 

Maybe talk to the principal ,as any contract entered into by the agent is on behalf of the principal and is binding on the vendor not the agent..All the agent does is find a suitable purchaser and is paid a commission based on the settled sales price..If this property has been on the market this long then something wrong..

 

Reads like you are liable for the marketing fees, if the agency has in fact incurred them

 

Yes that’s what I have thought mate, the new agent seems motivated to sell. I just feel like my place is stale now and 120 days on the market hasn't helped the cause. Given the previous agents lack of commitment to sell I was hoping they would waive the fee's out of good faith.