Agents who terminated their contracts for listing at OnTheMarket say they are being chased by solicitors.
One of the agents says his firm is one of 12 who are keen to form a new action group to resist OTM’s attempts.
Raste Khan, of London agent Cubix, told EYE that his firm was a Gold member of Agents Mutual, and supported the idea of OTM from the very start – the portal launched in January 2015.
He said: “We signed a five-year contract, but about a year and four or five months later, we heard of other agents being offered free or cheap deals.
“We were very unhappy about this, particularly as OTM had said that it would always discuss fees with us – but didn’t. We felt it had broken its promises.
“It had said that as members and supporters from the start we would be given the best pricing, but that didn’t happen.
“We therefore left OTM early, in 2016.”
Khan said his firm was part of an action group formed that year which challenged OTM over its pricing. He said that at the time, OTM appeared to back off.
He went on: “But we are now being chased by the law firm Eversheds for the amount it says we owe.
“It seems after the reports of an annual loss of over £7m, they are trying to harass the agencies that have decided to terminate their contract to recoup funds.”
He says Cubix is being told to pay £24,000 or face legal action.
Khan says of the other agents in a similar position, the amounts being chased are between £10,000 and £30,000.
He also claims that he has been told that if his firm rejoins OTM, it will wipe the debt.
Another agent who separately approached EYE told us that it too had been approached by a law firm, and had also been told its debt would be wiped if it rejoined OTM.
The agent told us: “We have tried engaging with Agents Mutual for three years but sadly had no meaningful response on the reasons why we terminated our membership early.”
A spokesperson for OnTheMarket said: “While we do not discuss confidential issues with individual agents, like any organisation, we see it as standard practice to seek to recover outstanding debts from customers in arrears with the payments they are contracted to make.
“As stated in our annual report, we reported that it was our intention to engage with a small number of customers who were not paying their contractually committed listing fees, seeking either payment of both fees outstanding and further fees as they fall due or to reach a compromise position with historic debts potentially waived in return for entering a long-term listing agreement with the company.”
Comments (46)
Why sign a 5-year contract on a company that hasn’t even launched yet? Crazy agents with no brains – that’s what you get for being greedy. I got no sympathy for you.
“…that’s what you get for being greedy.”
Care to elaborate on that bit, Mr West?
Cubix’ complaint that OTM would not talk with them won’t get anywhere. The claim that: “It had said that as members and supporters from the start we would be given the best pricing, but that didn’t happen” might be grounds for a misrepresentation action but that is not straightforward and may be met by a complete defence if the contract expressly excluded reliance on any statements made pre-contract.
It may cost more to try to defend the claim than to pay it and if they lose they will have to pay Eversheds’ mighty fees as well.
As a seasoned Estate Agent I joined OTM V1 at the outset, with my “Heart” dominating my intention to support Our Industry and with the real hope that OTM would succeed.
The only “balance” in my decision was that if it failed, at least I had tried/supported it.
The OTM V2 shenanigans was in every sense a farce, conjured up by those with little real concern for Our Industry.
My decision to leave OTM as soon as my 5 Year Lock-in expires is made firmly with my “Head”.
In my view…..OTM has been a wasted opportunity and it’s one that I’m no longer prepared to fund. I have better things to do with my time/money, than support the ailing “relative” that is OTM.
On Hallowe’en it may well be “The Day of the Dead” at the OTM Bunker, Springett & Co walking around with their skeleton costumes/face paint …..however, the rest of us are living/working in the real world!
As Rightmove is “Not fit for purpose”, neither is OnTheMarket.
If nothing else these “advertising portals” have driven many agents to revisit their own marketing/websites/social media/ reverting to traditional estate agency practices… and we are benefiting from taking time out to look back/assess/change/move forward.
In reality clients don’t give a sh&t about which portals they are on, they have been programmed by those very portals to think that is almost all that matters – we all know it’s the “Quality” of the Estate Agent that matters.
Let’s remember that portals are still “digital newspapers for property advertising” ….the rest of the fluff they pedal is Hallowe’en Paint!
Best post on PIE in years
yep, a real ‘nail-on-head’ post that.
Rather than just hit the like button and considering some posts today that I have answered, I would like to say SPOT ON GPL.
Can anyone tell me the date in which agents who locked in can sell their shares? I think it is coming up in January.
Think it was a two year lock in period. The shares that were much lorded at £5 that in fact are circa 85p
I am wondering if there is going to be a date where a mass sale of stock happens
Of course Rightmove is so much better. Particularly during the recession and this current year as they helpfully ramped up their prices by 10-15% as always. Anyone seen prices or our income rise with those sorts of figures ?
I’m no fan or apologist for OTM, but any reasonable effort to knock some sort of moral compass into the minds of Shipside and his cronies has to be a good thing. Surely it is Rightmove that is teetering on the brink of disaster as even our own indolent and change-averse industry finally realises our marketing overheads are now hopelessly our of control.
Rightmove has no justification for its pricing other than to exploit a weakly organised market sector where we are pre-occupied with what our competitors might do.
I am fighting such fear in my organisation, but I long for the day when we can all say enough is enough, so for all of you that have left RM………….. SPEAK UP !
Many have. I haven’t heard one viable reason to leave OTM today, more a personal loss in faith and yet ready to jump into the frying pan with RM, often for the same reason why they complain about OTM. Doesn’t make business sense.
Signed a five year contract and then left after 18 months.
what an IDIOT.
Can I try that with VODAFONE? my iPhone occasionally drops calls…
If you signed a 5 year mobile phone deal, be careful who you call an idiot 😉
PS – I know you didn’t before you say you didn’t… it was 3 years and with GifGaff…. 😉
Interesting hypothesis, if I signed any mobile phone deal and the provider stipulated they would give me something and then didn’t I would have the option of getting ombundsman services involved as an independent to rule.
In this instance they clearly say they reached out to OTM to discuss guarantees that were reneged upon, and there is no intermediary to rule.
Guarantees to who? Does the contract prevent “offers and incentives” and common practice in the commercial world 24/7. Do agents offer incentives to vendors to get instccutions and then go back to all their existing vendors and change their fees ….. oh yeah! Try winning that one in court, they won’t stop laughng at you … the judge!
Read the contract. If you have breached it, OTM can expect their money. If you are sure OTM have breached, you can argue the case in Court – you don’t need anyone else! The leads we receive from OTM are of high quality and in increasing numbers. OTM is the answer to all you whingeing RM bashers!
My thoughts exactly. If one reads between the lines, its not what the web portal and competitive fees can do for you .. its complaining about springet & Co, who are no different to the other competition and behind the scenes as far as the public are concerned and doesn’t get in their way of finding a property to buy or rent.
I think it’s the fact that Springett et al lauded themselves as the Agents Mutual who were there to represent the loyal hard working agent and once they had enough traction turned it round in to how can we line our own pockets best from here.
That gets on my thrupenny bits and i have not given any money to OTM so i can’t imagine whats it like for someone who has for 5 long years.
I was a fan, hoped it would work, but alas no longer… is what it is, I signed up and that was that. Keep paying as you would expect your clients to. However…
I wonder whether the way in which they dumped the IPO information on us with a couple of days to Vote and more so understand the document was somewhat unfair.
It really felt, vote IPO, you will never know if you win or not, we are doing it and you don’t want to be the “No” voter left on OTM after launch.
No advice was offered in terms of the implications of shifting the loan notes into the stock market and the talk given by I.S and his sidekick was at best the poorest duck a tough question roadshow ever.
The IPO behaviour is known as the ‘Boris Johnson Tactic’.
I nearly typed so many comparisons to the behaviour of our wonderful Gov.
Looking back it did feel very much like the Brexit deal. 2 days, pages of info I did not understand and take it or leave it… but dont blame us if you dont take it. (Ok YES then… Im in, coz I had no idea what a No to IPO would have meant, other than the site would fold and my money gone)
Didn’t RM do this with its founding agents incentives/shares!
I am caught in 2 minds over this.
1. They signed a contract so they should honour it.
2. It’s not what they signed up for so should they be held to account?
If I was the agents I would club together and let the courts decide, obvious OTM have little money to fight this.
Let the courts decide…
A monumental **** up from the start.
A perfect example of how agents cannot and will never collaborate.
Well done Ian Springett for getting rich off the back of sniping back stabbers who will now start to tear it all down by quitting.
You really couldn’t have made this nonsense up.
Just about the right comment so far today.
These lot are acting no differently than Rightmove!!!
Same business model when it comes to client relationships or lack of it!!!
Harrassing telephone calls trying to tell you they can run your business better than you can, constantly trying to upsell, increased rates and ‘Area Managers’ turning up unannounced when you’ve specifically told them you do not want any meetings!!!
Give these people too much power and they’ll strip us bare just like the other lot!!!!
First, second and fourth sentences spot on.
Third …. they all do it.
I dislike immensely the way OTM has treated its former Members …..a monumental OTM PR disaster …….however, I have paid my 5 Year OTM V1 Gold Member sentence regardless.
My OTM Termination Notice was served last month and I finally exit in January 2020 ……I will be FREE OF PAYING FOR MY IMPRISONMENT
Not my Loss …..OTM’s LOSS!
So who are you using now?
As a business/someone who has paid up, do you think you received a return on the investment, compared to the other portals?
Is the OTM comment a world record attempt for longest ever sentence? They’ve had two decent stabs at it.
You signed a contract – should of read the terms. So pay up.
Gold package compared with the free package are 2 different packages – one with shares and one without.
If everyone had supported OTM from the start they wouldn’t be getting shafted by RM now.
‘If everyone had supported OTM from the start they wouldn’t be getting shafted by RM now’
Silly comment really. Ignoring the blatant failings of Ian Springett and co, which include, paying himself an incredible consultancy fee, not marketing for years, giving it away for free, over valuing it, under selling it, not having a real USP etc etc. You still believe the very first lie that if the agents backed it then it would work!? If the public dont know it exists why would they use it? If it doesn’t offer more than RM why would they change?
Agents not backing it wasnt the problem. A simple lack of product offering failed it.
Silly comment really. Other poprtals charge more and pay themselves big salaries, what rock are you hiding under. We often see OTM TV ads, more often than RM (can’t remember the last ad) and about the same for Zoopla which has gone quiet. As for no presence, which high street are you in that does not have agents using OTM and YOU are supposed to promote OTM in your shop and advertising … as other agenst do with any web portal. Next you will be telling us that you don’t promote OTM. As for a product, it doesn’t do less than RM or Z as far as the public are bothered and to them looks the same for finding a property and its details. Customers want simplicity. The advantage OTM has other the others is the early listing, to entice your customers to you first before they see your competitors and a damn cheaper for the same outlet service as RM. You have to put effort in or are you another one of those agents that believe web portals do all the work for you? All I hear is whinging with no substance.
If Springett had been clear from the off what his actual gameplan was; likelihood it would never have taken off!
Also make note of your comment regarding difference between Gold and Free Contract is to do with shares; I know of an agent who pays £50 a month and gets shares……. oh and shares of what?? If the business was to fold, given the level of continual debt, people leaving and legal challenges making a distinct possibility; how much are these shares worth???
It certainly isn’t the model that started out but then it hasn’t changed direction from its intended puropse. Everyone seems to be more concerned over Springett, than how effective OTM can be for you. So lets all jump ship and join another web portal that has fat cat directors and charge us considerably more for doing nothing different with the advertising!
Gave notice yesterday to OTM. My 5 year sentence is coming to an end. Get released in January.
What would it take for you to rejoin ?
Are you happy with the leads?
Appreciate that being locked into a contract whilst fresh meat is enticed in with favourable offers is unlikely to endear you .Treated like second class citizens
What if Springett is removed and a new regime brought in with a fresh approach.
Would that make you reconsider?
I doubt I would rejoin. No I am not happy with the leads, most come for rental properties that are already let agreed, apparently this is because of the feed to facebook. Even if Springett is removed, it is now what it is. Beholden to shareholders so inevitably the cost will go up to pay them out. Yes as a gold member I was treated badly. I made a mistake as I thought that agents could work together and if all joined V1 then things could be very different by now. OTM is now just another Rightmove/Zoopla.
Thanks
Not welcome news as a shareholder !!!
But you are happy to use other web portals that charge you more and does counter your argument over fees and shareholders or do you only use facebook?
No I am not happy using other portals, only on one other. I want to drop that as well in the future, we have become to dependent on them have we not. I have invested more in our website, SEO and yes facebook. Should I feed all 3 portals or just 1. 1 portal will get you the same results as 3 I reckon.
Clever this. If they dont take it for free blackmail them back on!