Did you know that if you sign a Sole Agency Agreement with an Estate Agency and if the property is not not sold within the time period of their Agency Agreement, you could still have to pay them a fee if someone they introduce to you later goes on to buy your property within a six month period following the date on which the agreement ended? Well, it could happen, according to John Shearman, Director of Projects & Development at Frost Estate Agents in Surrey.
From 1st October 2006 the Ombudsman for Estate Agents has advised all its members that they have to make sure that if a client has previously had, or even currently has, a Sole Agency Agreement with another estate agent that they must inform the potential client that they may be liable to pay two fees.
How can you protect yourself from being charged two fees? John Shearman says: "Firstly, only instruct estate agents who are members of the Ombudsman for Estate Agents. They should display a sign in their offices and on their advertisements. The Ombudsman has set out guidelines for its members that have been endorsed by the Office of Fair Trading. This is so that the seller's interests, not the estate agent's, are being looked after. If your estate agent is not a member, there may be a very good reason for it, so check it out. Ask for a copy of the Consumer Guide issued by the Ombudsman. It's white with a blue header and footer. Also make sure you talk to the agent you are thinking of appointing to sell your property. Are they in the Ombudsman's Scheme? If they are, ask them how you can make sure there is no dual fee liability on your part. Remember if an estate agent is not a member of the Ombudsman Scheme ask yourself why not? Better still, ask them why not!"
