Commission where no completion

Foxtons Ltd v Thesleff and another CA SJ 29 April; TLR 16 May

The first defendant entered into an agreement with the claimants for the sale of property owned by the second defendant. Commission was to be payable to the claimants if at any time unconditional contracts had been exchanged with a purchaser introduced by the claimant. A purchaser was found who paid a deposit. Contracts were exchanged but the purchaser did not complete and the second defendant rescinded the contract. The trial judge dismissed the claim on the basis that under the Estate Agents (Provision of Information) Regulations 1991 (SI 1991 No 859), a ‘purchaser’ was a person who had completed the sale and purchase, and accordingly since the relevant purchaser had not completed the sale, no fees had become due under the contract.