Estate agency terms of business template
Estate agency terms of business are the terms an estate agent gives a seller before being instructed to sell a property in England and Wales, setting out the type of agency, the fee, the services and how the seller can cancel. They are signed before marketing starts. The seller, the property, the fee and the type of agency change for every instruction.
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What changes each time
25 values. Everything else is your wording, kept exactly.
The agent
- Agency's trading name and legal name
- Company number and address
- Redress scheme name and membership number
- HMRC anti-money laundering registration number
- Professional body and membership number
The seller and property
- Seller's name or all sellers' names
- Seller's address
- Property address
- Asking price
- Date of the terms
Type of agency
- Sole agency, sole selling rights or multi-agency
- Tie-in period
- Notice period after the tie-in
Fee and charges
- Fee percentage plus VAT, and percentage including VAT
- Example fee including VAT at the asking price
- Fixed fee plus VAT, if used
- Other charges and their costs
Services
- Portals and channels for marketing
- Who carries out viewings
- Other services offered to buyers, and who provides them
- Referral fee and who pays it
Contacts and complaints
- Privacy notice link
- Complaints contact name, role and email
- Complaints procedure
- Cancellation contact address and email
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“State the type of agency as sole agency, sole selling rights or multi-agency.”
Each form brings the explanation the law requires for that type, and a multi-agency instruction has no tie-in period.
- One of several wordings
“Charge the fee as a percentage of the sale price or as a fixed sum.”
The percentage form shows an example fee at the asking price. The fixed form shows the sum with VAT.
- One of several wordings
“Say there are no other charges, or list the charges payable whether or not the property sells.”
The list appears only on the second form.
- One of several wordings
“Say the agent carries out viewings, or helps the seller carry them out.”
Only the chosen wording appears.
- One of several wordings
“Say the agent offers buyers no other services, or list the services it or connected businesses offer.”
The list appears only on the second form.
- One of several wordings
“End the instruction at any time by notice for multi-agency, or only after the tie-in period for sole agency or sole selling rights.”
Only the chosen clause appears.
- Only when…
“Include a professional body line only when the agency is a member.”
The body and membership number appear.
- Only when…
“Replace the VAT wording only when the agency is not VAT registered.”
The terms say no VAT is added.
- Only when…
“Include the referral fee clause only when the agency receives referral fees.”
The business and the amount appear.
- Only when…
“Include a signature block for each joint seller.”
Each seller signs and dates the terms.
- Only when…
“Include the right to cancel, the model cancellation form and the request to start marketing early only for a consumer who signs away from the office or at a distance.”
The 14-day cancellation wording and form appear.
Questions people ask
What is the difference between sole agency and sole selling rights?
Under sole agency you owe the fee if the property is sold to a buyer introduced by the agent or by another agent in that period. Under sole selling rights you owe it however the buyer is found, even by yourself.
What must an estate agent tell a seller before they instruct?
The Estate Agents Act 1979 and its regulations require the agent to give the fee, the services and other charges in writing, and an explanation of any sole agency or sole selling rights terms.
When is an estate agent's fee due?
Usually on completion, paid from the sale money by the seller's solicitor or conveyancer. The terms state it.
Can a seller cancel an estate agency agreement?
A consumer who signs away from the agent's office or at a distance normally has 14 days to cancel. After that, the tie-in period and the notice terms apply.
Does an estate agent have to belong to a redress scheme?
Yes. Estate agents dealing with residential property must belong to a government-approved redress scheme, and the terms give the scheme's name.
Use this template
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