Types of Estate Agencies

Different Types Of Estate Agencies, Not Just One

It’s a must know, the types of estate agencies. Why? Because you need to know what agreement you are entering into when you instruct an estate agent. Luckily, I’ve got it summarised here for you:

Sole Agency

The Agent instructed is the only Agent who has the right to sell the property. If the seller finds a buyer the Agent is not entitled to any commission. Note: The Seller will have to pay any expenses incurred by the Agent. Where the Seller breaks the agreement i.e. instructs another Agent, he may be liable for two sets of fees.

Joint Sole Agents

In a Joint Sole Agent, the Seller appoints more than one agent with the instruction to work together. The agents will then share the commission fee.

Multiple Agency

The Seller can instruct many Agents. But, the commission goes to the Agent that introduces the Buyer. Often for this agency type, the commission will be higher. The big problem is that each agent is independent. Thus, as they are in competition, could cause problems with the sale if not controlled.

Sole Selling Rights

Here the Agent is the only person with a right to sell the property. If the Seller finds his own buyer he will still be liable to pay the commission. So the Agent must make the Seller aware that this is the type of deal they are entering into.

Ready, Willing and Able Purchaser Agreement

Here, the Seller pays the Agent commission if the agent finds a buyer. This buyer must be ready to buy the property and exchange unconditional contracts.

No Signed Agreement

Here, the Seller uses his preferred Agent with no agreement in place. The Agent presumes that if the Seller is happy with the service he will not look to use another Agent. Usually, the Agent will provide a ‘one-liner’ explaining the terms of service, but that’s it!