Imagine putting your property on the market, realising after a few weeks that things simply aren’t working… and then discovering you’re contractually stuck with the same estate agent for another five months.
We’ve recently heard of sellers being presented with estate agency agreements containing minimum terms of up to six months.
Yes, six months.
And while having a minimum contract period isn’t necessarily wrong, we think every homeowner should understand exactly what they’re agreeing to before they sign anything.
Because choosing an estate agent is important. Being unable to change your mind if they don’t deliver is something else entirely.
How Long Are You Actually Signing Up For?
Estate agency agreements vary enormously.
Some have no minimum term. Others might tie you in for 8, 12 or 16 weeks. And apparently some are now considerably longer.
The important bit is that you know before you sign.
The Property Ombudsman’s Code says an agent’s Terms of Business should clearly explain the minimum duration of the agreement and exactly how it can be terminated.
So before signing, ask one very simple question:
“If I’m unhappy with the service, how soon can I leave?”
If the answer is six months, just make sure you’re genuinely comfortable with that.
A Contract Shouldn’t Be Something You Discover Later
There are a few other things worth checking too.
How much notice do you need to give? Are there withdrawal charges? When does the agent become entitled to their fee? Is it sole agency or sole selling rights? And could you still owe the first agent a fee if you later change agents and eventually sell to somebody they originally introduced?
These aren’t exciting questions.
But they become very important when something goes wrong.
Government guidance is quite clear that consumer contracts should be fair, transparent and written so people can understand what they’re agreeing to.
A good estate agent shouldn’t mind talking you through theirs.
What Happens If You Change Estate Agents?
This is another area where sellers can accidentally get themselves into trouble.
Changing agent doesn’t necessarily wipe away the responsibilities you had under the first agreement. In certain circumstances, an original agent may still be entitled to commission if you later sell to a buyer they introduced.
The Property Ombudsman therefore requires agents to make sellers aware of potential continuing fee liability and the possibility of paying more than one fee.
So if you are thinking about changing agents, don’t simply sign another agreement and hope for the best.
Ask your current agent to confirm your termination date in writing and clarify whether there are any buyers they believe they have introduced.
Then let the new agent see your previous agreement.
A decent agent should help you avoid a problem, not accidentally create another one.
Our View Is Pretty Simple
At Campbells, we don’t believe somebody should continue using us simply because a contract forces them to.
We don’t have a minimum tie-in period. If somebody decides we’re no longer the right estate agent for them, our agreement simply requires 14 days’ notice.
Of course we don’t want clients to leave.
We’d rather make sure we’re doing our job properly so they don’t want to.
That’s quite an important distinction.
Clients should stay because they want to, not because they have to.
So whichever estate agent you choose, take ten minutes before signing anything.
Read the agreement.
Ask about the tie-in.
Ask how you leave.
Ask when their fee becomes payable.
And if there’s anything you don’t understand, ask them to explain it in plain English.
Moving home is too important to find out what your contract means when it’s already too late.
If you’re currently tied into an estate agency agreement and aren’t sure what it means, we’re always happy to have a look and give you a straightforward opinion. No pressure and no obligation – just send it over and we’ll tell you what we genuinely think.
