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HSC Property is not an Estate Agent and we can advertise
your property privately on your behalf. We can help you sell
your property and save the fees of the Estate Agent, especially if
your contract with the Agent is a 'sole
agency' contract as detailed below. The
information detailed below is an article written by the
Government's office of Fair Trading and is provided for your
information if you already have or are considering taking up the
services of an Estate Agent alongside a private property
advert.
The contract
When
you use an estate agent to help you sell a property, you have to
sign a legally binding contract.
Before
signing, read the contract carefully and make sure you understand
it. Find out whether you have the right to cancel the contract.
Check how long it will run. It should allow a reasonable length of
time to market your property and find potential buyers. Beware of
contracts that tie you to an estate agent for a very long time.
If
you are unsure, get advice from a solicitor or your local Citizens
Advice Bureau.
You
may come across some unfamiliar terms in a contract. Make sure you
understand what you are agreeing to. The terms 'sole agency',
'sole selling rights' and 'ready, willing and able purchaser' must
be explained in writing if they are used in a contract.
The
estate agent is the only agent with the right to sell your
property. If you find a buyer yourself, you don't usually have to pay the
estate agent's commission although you may still have to pay for
advertising or a 'For Sale' board.
Check for clauses which say you have to pay the full commission
even if you find your own buyer. Avoid these Agents - you will
find a sole agent contract which does not limit your ability to
sell privately.
If
you change from one agent to another, there may be a period when
both agents' commissions are due if your property is sold.
Sole
selling rights
The
estate agent is the only person with the right to sell your
property. It is different from sole agency: if you find a buyer
yourself, you still have to pay the estate agent.
Ready,
willing and able purchaser
You
have to pay if the estate agent finds a buyer who is prepared and
able to buy your property and exchange unconditional contracts.
You still have to pay even if you withdraw from the sale and
unconditional contracts are not exchanged.
Multiple
agency
You
can ask several estate agents to act for you on a multiple-agency
basis. Only the estate agent who sells the property will be
entitled to a commission. The rate of commission is likely to be
higher than for a sole agency or sole selling rights contract.
A
few estate agents offer a 'joint sole agency' contract where two
agents agree to share one commission, although the total fee may
be higher.
If
you appoint more than one estate agent to sell your property under
a sole agency or a sole selling rights contract, each agent has
the right to claim their fee when the property is sold.
Charges
Before
you sign a contract, the estate agent must give you written
details of how much you will be charged and when payments will be
due.
The
agent must state the exact amount you will be charged or, if this
is not possible, the way the cost will be worked out and an
estimate of the final amount.
You
pay a percentage of the selling price of your property as a
commission.
Some
estate agents charge a low percentage plus an additional charge
for advertising and 'For Sale' boards. In that case, the estate
agent should tell you exactly how much the additional charge will
be. If this isn't possible, you should be given an estimate of the
charge and a breakdown of how it will be worked out.
Other
agents charge a higher percentage of the selling price but this
includes all costs.
Occasionally,
an estate agent may charge a fixed fee rather than a percentage.
It
should be clear from the estate agent's terms and conditions when
you will have to pay. Fees are usually due when contracts are
exchanged, but you don't pay until the sale is completed.
Under
a ready, willing and able purchaser contract, you have to pay as
soon as a buyer who is prepared and able to exchange unconditional
contracts is found. This applies even if you withdraw your
property before the sale is completed. The estate agent may also
charge you for 'For Sale' boards and advertising.
Further
Information from The Office of Fair Trading
: www.oft.gov.uk
Further
details on Estate Agent Contracts from the Office of Fair
Trading: http://www.oft.gov.uk/Consumer/Your+Rights+When+Shopping/Home/estate+agent+selling.htm#contract
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