Foxtons Limited v Pelkey Bicknell

Foxtons Limited v Pelkey Bicknell [2008]
EWCA Civ 419.

This case is another in a long list of cases on the issue of whether the estate agent merely needs to introduce a purchaser or whether the introduction has to be an "introduction to the sale". Ultimately, the answer is dependent on the facts, although the courts are in favour, where possible, of avoiding double commission payments.

The Court of Appeal ruled that Foxtons was not entitled to recover commission from the seller. Although Foxtons had initially shown the purchaser around the property, at the time the purchaser was not interested in the property. The purchaser decided to buy at a later date having been shown around the property and negotiated the purchase through different estate agents.

Estate agents should try to avoid the risk of litigation and damage to reputation by ensuring that their terms are clear and that sellers fully understand the terms for payment of commission. This is not an issue confined to multiple agencies. A purchaser may be introduced by an agent and then the property may be taken off the market for some time and ultimately sold, some months later, to that purchaser, through a different agent or privately.

Sellers need to make sure that they fully understand the terms of their agreement with the estate agent, particularly in relation to commission. They should challenge terms where they are not clear or are not acceptable. If there is any confusion, the seller may want to check liability for commission before accepted any offer to purchase.