Auctioneer fees if buyer rents before buying.

Cooker1

An auctioneer brought a prospective buyer to see my house before anything signed with them and before they had seen the house themselves. Verbally auctioneer told me they charge for advertising a fixed amount up front and said on sale they charge 1.5%. I conducted the viewing with the auctioneer present. Whilst there, buyers asked if they could rent the house with a view to buying and I agreed. I presume no fee payable unless house actually sold? No word from auctioneer since, but I am in contact with the renters/buyers about their move in date. Is there a "statute of limitations" ie if they rent for a certain amount of time, am I exempted from paying an intro fee/commission?

whomitconcerns

Depends on your contact but I would imagine that you will owe them money if you take their referrals even if not to a sale

DaraDali

The OP is already paying for the advertising, I think you should cut out the middleman as the Auctioneer did not sell this house, it sounds like you did

Talk it over with you lawyer regarding the contract you're drawing up for the rent to buy.

antoinolachtnai

I would say you would owe them 5 or 6 percent on the rent for the first year or the 1.5 percent when it sells, whichever is higher. If you pay the 5 or 6 percent rental commission now, I think you would be entitled to deduct that commission from the 1.5 percent commission later on if/when it turns into a sale.

I don't see how you can morally or legally avoid paying the agent for his work.