An example of the WHICH? Seller's Contract for an Estate agent
Our Contract with sellers
To aid transparency between the house seller and 'Estate Agent' the contract between the parties will be the one supplied by WHICH? The Consumer Association. Section 12 has been added.
An example is provided below:
“House sales by a specialist who cares.”
CONTRACT TO SELL
(issued by WHICH?)
Term and Conditions of Business.
- THIS IS A SOLE AGENCY OR
- MULTIPLE AGENCY
AGREEMENT BETWEEN:
____________________'Estate Agent'_________________
(the ‘Agents’)
and
Mr and Mrs G. Example
(the Seller)
The property at: 4 Acacia Avenue
Arnside
La5__
will be marketed at an initial asking price of: £000,000
?? hundred and ?? thousand ?? hundred pounds
(the asking price is not a valuation but a figure for marketing purposes)
1% commission will be charged by 'Estate Agent' if earned under the terms of this contract, calculated as £0000.00 . with no VAT payable in addition.
OR
A fixed fee of £……………….will be charged by 'Estate Agent' if earned under the terms of this contract. Total amount due to 'Estate Agent' for a successful sale under this agreement £………………..…….. with no VAT payable in addition.
IMPORANT NOTICE
This is a legal document. Please take time to read it carefully and feel free to ask any questions relating to the terms and conditions below before signing.
2.TYPE OF AGENCY
Where 'Estate Agent' act on the Seller’s behalf as sole agents, the Seller will be liable to pay remuneration to the Agents, in addition to any other costs or charges agreed, if at any time unconditional contracts for sale of the property are exchanged with the Buyer introduced by the Agents during the period of their sole agency or with whom the Agents had negotiations about the property during that period, or, with the Buyer introduced by another agent during that period.
'Estate Agent' will be able to claim the agreed commission for the period of 6 months after expiry of the sole agency period goes on to purchase the property within six months of the expiry of the agreement.
Termination of sole agency.
Either party can terminate a sole agency at any time by giving 5 days notice, which should be confirmed in writing.
DOUBLE COMMISSION WARNING
If any other agent introduces a Buyer to the Seller during the period of the sole agency agreement, this will be regarded as an introduction by 'Estate Agent' and the Seller will have to pay the Agent’s agreed fee, as well as the other Agent.
For the purposes of this contract, multiple agency means that the Seller can instruct several estate agents to act on a multiple agency basis. Only the successful agent who introduces the Buyer or has negotiations with the Buyer will be entitled to commission fees.
Termination of multiple agency.
Either party can terminate a multiple agency at any time by either party giving 5 days notice in writing.
There is no fee payable if the Seller finds their own Buyer. However, please note that a buyer will be deemed as introduced by the Agent if a Buyer finds out that the property is for sale by seeing 'Estate Agent' ‘For Sale’ display board or any other form of advertising such as internet adverting or email notification that the property is for sale.
In circumstances where Agents wish to enter into sub-agency agreements, the Seller must be notified in writing.
3. FOR SALE BOARDS
'Estate Agent' ask permission to erect display boards at the property to assist in the marketing of the property. Any such boards will comply with the Town & Country Planning (Control of Advertisements) Regulations 1987. The Seller consents that 'Estate Agent' may erect a ‘For Sale’ board at the property. The Agent accept liability for any claim arising under these Regulations in connection with the board, unless the action arises as a result of a further board being put up by another Agent.
4. FEES
- Fees Payable for sole/multiple agency.
Commission fees are payable as a result of the circumstances outlined in general condition 2 above. Fees are due on the completion of the sale.
The responsibility for the payment of these fees remains with the Sellers named above. Under the terms of this agreement, the Sellers are obliged to meet the payment schedule.
5. Expenses
No additional expenses will be charged by 'Estate Agent' unless agreed with the Seller, in writing. Any agreement will include an itemised breakdown of costs.
6. OFFERS
Green2Blue Properties will, promptly and accurately, forward all offers received from potential Buyers at any time up until contracts have been exchanged, unless the offer is of an amount or type which the Seller has specifically instructed the Agents, in writing, not to pass on. A written or computerized record of all offers received will be kept (including the date and time such offers were received and the client’s response). This record will be available to the Seller on request.
7. ACCESS TO PREMISES
If 'Estate Agent' holds the keys to the property, the Agent must accompany any viewings of that property, unless the Agent and Seller agree otherwise in writing. If 'Estate Agent' is arranging for someone to view an occupied property, The Agent must agree the arrangements with the occupier beforehand.
If access to the property is required by a person on behalf of the Buyer (e.g. surveyor, builder, tradesman), and 'Estate Agent' is unable to accompany that person, this must be made clear to the Seller beforehand and his express permission obtained.
8. DISCLOSURE REQUIREMENTS
The Estate Agents Act 1979. Under this Act, the Agent must disclose whether they have a personal interest in the property.
Does 'Estate Agent' have any personal interest in the Property?
YES NO
Describe this personal interest:
__NONE___________________________________________________
9. PROPERTY MIS-DESCRIPTION ACT 1991
'Estate Agent' will take all reasonable steps to make sure that all statements, whether written or oral, about the property, are accurate and not misleading. The written details (Sales Particulars) must be sent to the Seller for them to confirm that the details are accurate.
10. Discrimination
The Agent will not discriminate against any person under the definitions of the Sex Discrimination Act 1975 or the Race Relations Act 1976. The Agent will not discriminate, or threaten to discriminate against any prospective Buyer of the Seller’s property because that person refuses to agree that the Agent will (directly or indirectly) provide services to them.
Discrimination includes:
- Failing to tell the client of an offer to buy the property.
- Telling the client of an offer less quickly than other offers that have been received.
- Misrepresenting the nature of the offer or that of rival offers.
- Giving details of properties for sale to those who have indicated they are prepared to let the Agent provide services to them.
- Making it a condition that the person wanting to buy the property must use any other service provided by the Agent or anyone else
11. CODE OF CONDUCT
We are a member of the Estate Agents Ombudsman Scheme and a member of the Office of Fair-Trading and have agreed to abide by their codes of good conduct.
12. MARKETING EXPENSES
Following the recently introduced regulations, a Home Information Pack (HIP) is a package of important information that must be provided, by law, for the property by the vendor. Fees arise due to the need to provide floor-plans, virtual tours, maps etc. The cost of these items will be charged at cost and £…360.00….will be paid to Green2Blue Properties on completion of the sale or if the house is withdrawn for sale by the vendor.
This is a 4 page document
YOU SHOULD NOT SIGN THIS AGREEMENT UNLESS YOU AGREE TO THESE TERMS
Signed: Seller : EXAMPLE. NOT TO BE SIGNED Date:
Signed: Seller: EXAMPLE. NOT TO BE SIGNED Date:
Signed: Date:
'Estate Agent'
Name of your Solicitor:
Solicitor company name:
Town:
Telephone number:
'Estate Agent'
Disclaimer
The above is merely an example of the contract between client and estate agent
The guide is, in no way, intended to replace the necessity to seek legal and other personal guidance when purchasing a property.
All information is produced in good faith, and is based on our current understanding of the legal position in UK. However, legislation and regulations do change, and we are unable to guarantee the accuracy of any of the information or data contained in this web guide. Once again, legal advice should be sought when purchasing property.
This web guide does not form part of any contract, nor is any individual in the employ of Green2Blue Properties in a position to guarantee the accuracy or validity of the information contained herein.
Green2Blue Properties hope you find this information useful.
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