A Quick Guide to Using an Estate Agent
This guide gives you tips on what to look out for when you’re buying
or selling a home using an estate agent, plus some useful addresses.
Selling a property
Shop around and get at least three agents to give a valuation and
quote for their services. Estate agents often start by offering
similar fees, but by bargaining you can make big savings - about £300
on an average valued home.
When you ask an estate agent to act on your behalf and he agrees to do
so, you are entering into a legally binding contract. So ‘think
contract’. Check its terms. Find out about whether you have the right
to cancel the contract and how long it will run for.
To get the best deal:
- Negotiate on fees.
- Ask for the fee as a monetary sum based on the estate
agent’s valuation, not just a percentage.
- Always get more than one valuation for the property and
compare them. Be realistic – trying to sell your property at
an inflated price could mean that it will take longer to sell.
- Check what you’re signing up to and whether you’re being
offered a sole or multiple agency deal or sole
selling rights (see key terms).
- Check exactly what’s included in the package such as
advertising, brochures and so on.
- Read the contract, ask questions and never sign up to
anything that you don’t understand.
Know your rights
When selling a property you have certain rights.
Offers: potential buyers view your property and can make an
offer to buy it. You must be told promptly and in writing of all
offers received by the estate agent (unless they are of a kind you
have said in writing that you don’t wish to receive).
Between an offer being accepted and exchange of contracts, you should
be able to re-negotiate the price and conditions of sale without
penalty.
What your estate agent must do
The contract: the terms ‘sole agency’, ‘sole selling rights’
and ‘ready willing and able purchaser’ must be explained in writing
and in wording required by law if used in the contract.
Fees or charges: when you enter into the contract you must be
given written details of how much you will be charged and when
payments will be due. Fees are usually paid on completion of a sale.
Property particulars: once instructed, the estate agent visits
your home and takes details of its size and features.
False or misleading statements
It is a criminal offence for an estate agent to make statements about
the features of a property that are false or misleading.
NOTE: estate agents might be in a position to benefit personally
from the sale of a property. You must be told - promptly and in
writing - if the estate agent or a relative or business partner of the
estate agent who is selling your property wants to buy it. And you
must be told if the agent might benefit in any other way (above and
beyond the agreed commission) from the sale of your property.
Similarly, if the agent or a relative or business partner is selling a
property, then the prospective buyer must also be told promptly and in
writing.
Buying a property
Remember that estate agents provide
information and property details to buyers, but
they’re usually working for and paid by the
seller. Know your rights and be prepared to
bargain so that you get the best deal.
What to look out for:
- If you need a mortgage, shop around
yourself for the best deal or use a broker such as Best Buy Mortgages
to search the entire market
for you. Don’t be talked
into taking out one the estate agent is trying
to sell, unless you’ve compared it with other
lenders’ offers.
- Estate agents must not discriminate against
you if you buy additional services elsewhere
or ignore their recommendations (for
example, for insurance or a mortgage)
The agent must not mislead you.
- The agent must describe the property in a
true and accurate way.
- You can make your offer subject to
conditions, but the seller does not have to
accept them.
- If you’re asked to pay a pre-contract deposit,
check with your solicitor if this is necessary.
If so, is the money returnable if you don’t
complete the purchase? Get a receipt.
- Don’t use the same legal adviser as the
seller.
- If using the services of an estate agent to
find a suitable property to buy, try to avoid
buying a property where your agent is also
acting for the seller. Under such
circumstances, the agent may have a
conflict of interest.
- To find a surveyor, ask friends or relatives for their
recommendations. Or contact the Royal Institution of Chartered
Surveyors (see useful addresses).
Top tips for buyers and sellers
- Check whether the estate agent is a
member of a trade association, for example
the National Association of Estate Agents
(NAEA), Royal Institution of Chartered
Surveyors (RICS) or the Ombudsman for
Estate Agents Scheme (OEA).
- Shop around and compare before you
commit yourself.
- Don’t be persuaded to sign up to a
mortgage, conveyancing or other services
without checking the alternatives.
- Keep a record of all correspondence.
Key terms
Estate agents: arrange the sale of a property
by bringing together buyers and sellers.
They usually act for sellers, not buyers -
although this will not always be the case.
Estate agents advise on price, negotiate
between sellers and buyers and handle
advertising. For these services they usually
take a commission – often a percentage of the
purchase price and payable by the seller
(if the seller is their client).
Sole agency: the term refers to your appointed
estate agent - the only agent with the right to
sell your property. You should be able to sell
the property yourself without paying the agent
a fee – provided that the buyer was not
introduced to you by the agent during the
contract period.
Sole selling rights: the estate agent that you
have appointed is the only person with the
right to sell your property. The agent is
entitled to his fee even if you sell the property
yourself.
Multiple agency: you can ask several agents to
act for you. But only the one that sells the
property is entitled to a commission.
Commission can be higher if you opt for a
multiple agency deal.
Ready willing and able purchaser: under the
contract, if the estate agent finds you a buyer
who is prepared and able to buy your property
and to exchange unconditional contracts, you
must pay the commission – even if you decide
not to sell.
Gazumping: even after an offer has been
accepted, the estate agent has a legal duty to
pass on any further offers unless the seller
specifies otherwise. This can lead to
gazumping – where a new and higher offer is
accepted by the seller before exchange of
contracts.
Mortgage: this is a long term loan, often
secured on the value of the property.
Best Buy Mortgages can help you find the best deal. Simply fill in our
simple online mortgage enquiry form.
Surveys: a home buyer’s survey is a partial survey of
the state of the property.
A full structural survey tells you if the property is sound or
whether major repairs are needed. This should be carried out by an
independent surveyor.
Conveyancing: the legal side of buying property. It’s normally
done by a solicitor or licensed conveyor, but some people take this on
themselves.
What if there’s a problem?
If you are unhappy with the service provided by the estate agent try
to sort it out with the local branch or head office. If that doesn’t
work talk to your local trading standards department. The address is
in the phone book. If the agent is a member of a trade association or
the Ombudsman for Estate Agents Scheme, they might be able to help
(see useful addresses below).
Useful addresses
The Royal Institution of Chartered Surveyors
(RICS)
12 Great George Street
London
SW1P 3AD
Tel 020 7222 7000
Website: www.rics.org/public/
The Ombudsman for Estate Agents Scheme
(OEA)
Beckett House
4 Bridge Street
Salisbury
Wiltshire
SP1 2LX
Tel 01722 333306
Website: www.oea.co.uk
The National Association of Estate Agents
(NAEA)
Arbon House
21 Jury Street
Warwick
CV34 4EH
Tel 01926 496800
Website: www.naea.co.uk
This guide sets out general guidelines. All
legal rules have exceptions and variations.
How the law applies to you depends on the
facts of your case. If you think you have a legal
claim and cannot get a satisfactory answer
from the trader get advice from your local
authority's trading standards service or a
Citizens Advice Bureau or a solicitor.
How to get your free mortgage quotes from Best Buy Mortgages
It will only take a few minutes of your time today but
could save you thousands of pounds in interest payments and will
eliminate any worries you may have about getting the best mortgage deal
possible.
You just need to enter some basic information into our secure
online remortgage enquiry form and we will present
you with illustrations of the best remortgage deals currently available
in the UK.
|
