Estate agency agreements: five questions before signing

What work are you commissioning?

A useful agency agreement starts with specific services. Does it include advertising, viewings, communication with candidates and negotiation support? Which documents do you provide and what updates should you receive?

A document headed “viewing record” may still contain contractual obligations. Read every page and attachment. Do not sign while important terms concerning the property, price or fee remain unclear.

When does commission become payable?

Check both the amount and the event that triggers payment: introducing a client, signing a preliminary agreement or completing the sale. Clarify whether the quoted fee includes applicable taxes and whether other expenses are charged separately.

Discuss what happens if negotiations fail, the buyer cannot obtain finance or the sale takes place after the agency agreement expires. The answer is not necessarily the same in every contract.

What does exclusivity mean in this agreement?

Clarify whether you may appoint other agents, advertise privately or sell to someone you already know. Distinguish a client introduced by the agent from a person with whom you were already in contact.

Illustrative example: an owner has an existing prospective buyer but signs broadly worded exclusivity terms. Recording and addressing that situation in advance can help prevent a later commission dispute.

How long are you committed and how do you end it?

Look for an end date, automatic renewal, notice periods and the method for sending notices. Read any penalty clauses and obligations that survive termination.

The final practical question is whether agreed clarifications appear in the signed text. Keep a signed copy and important correspondence. A consumer agreement may also require assessment under consumer protection rules; a term is not invalid simply because it appears unfavourable.

A review before signing lets you raise issues calmly and early. It need not imply conflict with the agent: its purpose is a clearer basis for working together.