Mortgage News
Sellers warned to beware sole agency clause
Home sellers have been warned that instructing multiple estate agents could result in thousands of pounds in extra fees and legal costs if ‘sole agency’ has been granted.
The warning followed a court of appeal ruling on 2 December that a vendor breached her sole agency agreement with a firm of estate agents by not paying its fees when another agent sold the property.
The court ruled that she must pay the £10,883 commission the firm would have earned if it had sold her property.
Trevor Kent, former president of the National Association of Estate Agents (NAEA), said: “Sole agency means just what it says – an agreement to be the only person to represent the client, and claim any commission made.
“Sellers should be very careful to consider the terms of the contract with their existing agent when contemplating ‘widening the field’ to bring other firms on board.”
He added: “Using more than one agent to market a home gives a greater selection of buyers, an element of inter-agent competition can often speed a sale and sometimes even increase the sale price. To avoid falling into the double fee trap, the phrase to look out for is ‘multiple agent’.”
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