Auctioneers and conflict of interest

B

bob100

Guest
I have a question on auctioneers and conflict of interest

My friend was selling his house through an auctioneer, but there was very little interest so the house was taken off the market. A second auctioneer approached my friend and said he had a buyer, but the buyer was anonymous. My friend asked on a number of times who the buyer was but the auctioneer did not tell until the deal and price were agreed and at that stage then introducted the buyer as his sister.

As my friend had not asked the auctioneer to sell the house he said that he would pay a finders fee (to be agreed) but would not pay him a selling fee. Unfortunately no fee was agreed until the day of the sale when the auctioneer witheld 1.5% of sale price.

The auctioneer is a member of IPAV, their website has a section on code of conduct for members. This code of conduct has a section on conflict of interest, and on the agreement of fees.

Has anyone come accross a simalar story?

What is the best way to proceed? though IPAV? or via a solicitor? or is it a lost cause?
 
I would make enquiries with IPAV without mentioning any names and see what their feedback is based on code of conduct.

Retrospectively, it would appear foolish not to have agreed a finders fee up-front and in writing.

Hope your friend can sort it out to his satisfaction.
 
I don't see a conflict of interest here - just a very poor negotiation strategy on the part of the seller.
 
How do you mean the auctioneer witheld 1.5% of the price? Surely all monies would have gone through the solicitor? Did your friend authorise a fee to be paid to the auctioneer? Was there any mention of VAT on the fee?

All sounds rather dodge to me.

Sarah

www.rea.ie
 
surely the auctioneer was acting for the buyer not the seller...primarily...and should be paid a fee by the buyer.
 
Anyone who approaches a vendor on behalf of a buyer is indeed clearly acting for, and negotiating on behalf of, the buyer. I still don't see what the problem is, apart from a poor negotiation strategy on the part of the buyer. A 1.5% finders fee seems outrageous but the OPs friend should have cancelled the sale if they were not happy with this. It is a bit late now to negotiate this issue.
 
Thanks for you replies.

I agree that all fees should have been agreed up front but this occurred in a small village down the country and things appear to be done differently than in Dublin.

I will talk to IPAV and see if they can be of assistance
 
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