Estate agent contract warning over residential conveyancing pitfall

Property owners who instruct more than one estate agent in an effort to sell their homes quickly are being warned of the value in consulting a residential conveyancing solicitor to ensure they have complied with all arrangements made with the marketing agents.

This follows a decision by the Court of Appeal ordering a homeowner to pay an estate agent £10,883 commission, even though it did not sell her house, because she did not rescind the sole agency agreement she had made with it before instructing a second agent.

Property lawyers say that the case involving Nicholas Prestige Homes claiming damages from the seller, shows up an important point of law in that the contract made between the client and estate agent is legally binding even if the agreement is only made verbally or by email.

Having paid commission to the agent who actually sold the house, the seller was unaware that she had not severed her arrangement with the previous firm.

Appointing a sole agent is the more usual practice outside cities such as London and Brighton where more than one agent is often appointed, usually in an attempt to boost the price or achieve a faster sale. The property involved in the Appeal Court hearing was in a rural county north of London.

A former president of the National Association of Estate Agents, Trevor Kent, was quoted in the press as saying that a sole agency means just what it says and that, if a seller feels the need to instruct another agency, it must be quite clear to all concerned that the home is being marketed by multiple agents and not just one.

All potential property sellers are recommended to seek legal advice from an experienced residential conveyancing solicitor at the initial stage of putting their home on the market to check for any possible pitfalls relating to the law.

 

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