It can be a frustrating fact of life when a seller withdraws a property from the market after an agent has spent money advertising and marketing that
It can be a frustrating fact of life when a seller withdraws a property from the market after an agent has spent money advertising and marketing that property. Sometime the reasons given for the withdrawal can be vague or difficult to understand, if any reason is given at all. There are many explanations for why a seller might abruptly change their mind, and most are legitimate and genuine, but what about those few properties that were withdrawn simply so the seller could find a way to cut the agent out of a deal and save a few pounds?
Risky markets can produce bad practices
It may sound unsavoury, but with today’s estate agency market, there is no shortage of buyers and sellers willing to engage in risky practices to save money or make an extra pound. “Gazumping”, anyone? Fortunately, most agreements include clauses to shield estate agents from this sort of behaviour and protect their bottom line. Depending on the type of contract and the language detailed in it, there may be ways for estate agents to recoup commissions they might be owed.
One possible scenario
Let’s say, for example, that an estate agent has an exclusivity clause in their contract with a seller that grants them “sole agency” rights but also includes language detailing what happens when they make “an introduction” of potential buyers. That agent’s database should contain information on all of the introductions they have made to the property via appointments, bookings, etc.
In this example, the seller finds a willing buyer who they think they’ve found on their own, but was actually introduced by the agent. For one reason or another, the seller decides to cut the agent out of the deal by withdrawing the property and selling it after the exclusivity clause has ended. How would an agent know?
This scenario may sound far-fetched, but a quick search will turn up numerous cases where agencies had to deal with just this sort of behaviour. In our example above, the agent’s database would contain information on every introduction they would have made to the property. A simple check of that database against the UK Land Registry could reveal any such breach of contract. Simple, but very time-consuming.
The Withdrawal Checker takes advantage of Rezi’s unique structure to streamline and automate that process, making it as easy as possible. The Dezrez Core API can compare an agent’s database with every transaction in the UK Land Registry files and search for any properties sold to someone in that agent’s records. If it finds a case where a withdrawn property was actually sold to someone they had introduced to the buyer, it can alert the agent and allow them to make the case that they are owed a commission on that sale. Once activated, it can even search the previous twelve months for any shady dealings.
Though this capability is available to users of DezrezOne, it is Rezi that offers a vastly more powerful version of the service. With its extended ability to integrate with third party APIs, Rezi offers agents more possibilities than ever before. Imagine trying to argue the case that you had made an introduction of a buyer, for example. Rezi could show records of meetings, Google maps data on the property, and even digital signatures all with ease and under one roof. Rezi is designed to centralise your data, eliminating the task of comparing multiple databases across several pieces of software searching for relevant entries. Rezi does it for you.
Withdrawal Checker can reassure agents that they haven’t missed out on a commission. Since the agent’s records could prove they introduced the buyer and the Land Registry would have that information on file, proving a breach of contract would not be difficult. These types of breaches don’t just happen on million pound properties. Often the agent’s fees hover around £3,000 on a single transaction. At a cost of only £30 per month, Rezi’s Withdrawal Checker would prove a wise investment if it found even a single instance in a ten year period. Because of this, what it really offers is peace of mind.
For more information on how Rezi is equipping the estate agent of the future, click here for demos and enquiries.