Most sellers will use an estate agent to market their property and to negotiate on the sale. The agent usually charges the seller a percentage of the selling price as commission.
Types of Agency Contracts
Only one estate agency has the right to sell the property. If the seller finds a buyer personally then the agent is not entitled to any commission.
If the seller appoints more than one agent under a sole agency, each agent is entitled to claim their fee when the property is sold (the seller may end up paying more than one commission).
The seller instructs several agencies but only the agent who introduces the eventual buyer will be entitled to commission. The rate of commission for a mutual agency is generally higher than for a sole agency.
Sole Selling Rights
The agent is the only person with the right to sell the property. Even if the seller finds a buyer personally, the agent is entitled to commission.
Ready, Willing, and Able Purchaser Agreement
The seller pays the agent commission for finding a buyer who is prepared and able to buy the property and exchange ‘unconditional contracts’. The seller still has to pay the commission if the transaction aborts.
A S Solicitors