Choosing an Estate Agent? Make Sure You Understand the Agreement You’re Signing
Before instructing an estate agent, it is essential to understand the difference between Sole Agency and Sole Selling Rights, as the terms can have a significant impact on your sale and any fees you may be required to pay. With a slower property market some agents are turning to longer contracts e.g. 24 weeks and introducing Sole Selling Rights Contracts.
What is a Sole Agency Agreement?
A sole agency agreement is the most common type of agreement used by estate agents.
In simple terms: With Sole Agency:
- One estate agent markets your property
- The agent is paid if they introduce the buyer
- You may avoid fees if you independently find the purchaser yourself (subject to contract wording)This is generally viewed as the more balanced and widely used agreement.
What is a Sole Selling Rights Agreement?
With a sole selling rights agreement, the appointed estate agent is entitled to their fee regardless of who finds the buyer during the agreement period.
In simple terms: With Sole Selling Rights:
- One estate agent has exclusive rights to sell your property
- The fee is payable regardless of who introduces the buyer ie you another agent, a friend etc
- You could still owe commission even if you secure the buyer yourself
For many sellers, this distinction is only realised after an offer has been accepted - which can come as an unwelcome surprise.
Why This Matters
When choosing an estate agent, it is easy to focus solely on valuation figures or commission rates. However, the agreement you sign can be just as important as the marketing itself.
Some homeowners unknowingly agree to terms that are more restrictive than they expected, particularly if the wording is not clearly explained.
Before signing any agreement, ask:
- Is this Sole Agency or Sole Selling Rights?
- How long is the contract period?
- What happens if I find my own buyer?
- Are there notice periods to terminate the agreement?
- Are there any additional fees or withdrawal charges?
A reputable estate agent should be happy to explain their terms clearly and transparently.
Read the Small Print
Not all estate agency agreements are the same. Taking five minutes to read the terms properly can save stress, confusion, and unexpected costs later. Don’t be pressurised to sign there & then take your time.
The best relationships between seller and agent are built on transparency from the beginning. You should always feel comfortable asking questions and fully understanding what you are agreeing to before signing.
At Corbin & Co, we believe in being clear and upfront about our terms, ensuring our clients understand exactly how we work and what to expect throughout the selling process.
Thinking of moving or unsure about your current agreement? Get in touch with our team for straightforward, honest advice.
