Types of Estate Agent Contracts
There are three main types of estate contracts in the UK property market. These are the sole agent agreement, the sole seller agreement and the multi agent agreement.
Sole Agent Agreement
The sole agent agreement is the most common type of estate agent contact. A sole agent contract is used when you have an agreement to sell or rent your property with just one estate agent. So what does a sole agency agreement mean and how does it differ from the other two types of agreement.
A sole agent agreement means that you will only pay your estate agent the agreed rate of commission if your estate agent successfully introduces your buyer or tenant to you.
However, if you independently find a buyer or tenant then you do not pay your estate agent any commission. Therefore if you were to advertise in tandem with Private House Sales and your estate agent you would have to pay your estate agent any commission if your buyer or tenant contacted you through Private House Sales.
Sole Seller Agreement
Sole seller agreements are not commonly used amongst estate agents now and have been widely condemned by the Office of Fair Trading.
Like a sole agency contract a sole seller contract is an agreement between the seller or landlord and one estate agent. However, the main difference is that if you independently find a buyer or tenant for your property that has not been introduced to you from your estate agent you will still be liable to pay your estate agent commission. To put this into perspective, if a friend at work is looking for a flat to rent or to buy and they offer to buy or rent your flat, regardless of the fact that your estate agent has played no part in the sale or letting you are still legal bound to pay them the agreed rate of commission.
Sole agency contracts are not recommended and will question the integrity of the estate agent itself. If you chose to advertise with Private House Sales and an estate agent with a sole agent contract then you will not save estate agent commission fees as you will still have to pay them.
Multiple Agent Agreement
A multiple agent agreement is when you choose to advertise your property with two or more estate agents. In almost all cases the rate of commission will be higher than if you choose to sell or let with just one estate agent. The reason for this is that only one of the multiple agents are guaranteed to get receive any commission.
A multiple agency contract should not prevent you from finding a buyer or seller independently with Private House Sales. Generally multiple agency contracts are only used when someone is looking for a very quick sale or rental.