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Overseas Property Professional

If you have a legal issue, email theproblempage@opp.org.uk and we’ll put your question to our panel of experts.

Q: I am currently owed commission on sales made for a large agent, and the sums owed are now in arrears. What steps can I take to ensure prompt payment of monies due?

A: If you didn’t have a specific contract for this particular deal, do you have any other form of written agreement, such as letters, faxes or emails, covering your agreement regarding your payment? The more written evidence you have regarding your agreement with the agent the better your chances of pursuing matters formally.

If your relationship is that of a ‘sub-agent’ with a principal agent, it may be that they are delaying your payment because they are still waiting to be paid their commission by the developer. Wherever possible, you want to make sure your agreement with them states your payment is due within a fixed time period from when, say, your client has paid their first deposit rather than when they get paid by the developer. They are likely to want the reverse, so it’s a point for negotiation.

Bear in mind that even the best contracts can be expensive and time-consuming to enforce through court action. However, presenting your partners with professionally prepared agency and confidentiality agreements at the outset shows you mean business. A personalised, adaptable set of documents manages the risk of misunderstanding on the amount and timing of your revenue.

You might also consider underpinning your agency agreement with an arrangement allowing the lawyers acting for your buyers to deduct your commission ‘at source’ through a regulated client account when arranging payment of your buyers’ payment instalments to the developer. Experience has shown this to be a practical and cost effective way to ensure prompt payment of your commissions once they’re due.

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