What should I check in an estate agent contract before I sign?

An estate agent's Terms of Business is the contract that sets out when you owe a fee, how much it is and how long you are tied to that agent. The agent must give you these terms in writing before you are committed, and The Property Ombudsman's Code says you must be given enough time to read them before you sign.

What are the main types of estate agent contract?

The type of agency decides when a fee becomes due. The Property Ombudsman's Code requires agents to use the legal definitions of these terms in full, display them prominently and explain what they mean for you.

How do I check an estate agent contract, step by step?

1. 1. Take the terms home

   Ask for the Terms of Business at the valuation and read them at home rather than signing on the day, because no good agent needs an answer on the doorstep.

2. 2. Confirm the type of agency

   Check the contract says sole agency, and look for sole selling rights or ready, willing and able wording anywhere else in the document.

3. 3. Work out the fee in pounds

   Turn the percentage into a cash figure on your expected sale price, and confirm in writing whether VAT is included or added on top.

4. 4. Check when the fee is due

   Make sure the fee is payable on completion of the sale, not on exchange or on the introduction of a buyer.

5. 5. Check the tie-in and notice period

   Find the minimum term and the notice you must give to end it, because a notice period often runs on top of the tie-in.

6. 6. Look for extra charges

   Check for withdrawal fees, marketing costs and upfront charges; the Ombudsman's Code says any termination fee must reflect work done and must not be a penalty.

7. 7. Check the introduction clause

   Find out how long after the contract ends the agent can still claim a fee from a buyer they introduced, and ask for a time limit if there is none.

8. 8. Look for added services

   Check nothing has been added by hand, such as the agent's own conveyancing, surveys or mortgage advice, which you are free to decline.

9. 9. Know your cancellation right

   If you sign at home or online, you have 14 calendar days to cancel, and any costs in that period must have been agreed in writing first.

Can I negotiate estate agent fees?

Yes. The HomeOwners Alliance says most agents are prepared to be flexible on fees, yet its 2017 survey found only 26% of sellers negotiated the commission they paid and 22% asked to see an agent's standard terms before choosing one.

• Compare written quotes from several local agents, so each fee is measured against the others rather than against nothing.
• Ask for a performance-linked fee, such as a lower rate at the asking price and a higher rate above it.
• Trade terms rather than only price: a shorter tie-in or no withdrawal fee can be worth as much as a lower percentage.
• Ask exactly what the fee includes, from photography and floorplans to accompanied viewings and portal listings.

The time to negotiate an estate agent contract is before you sign it. After that, the terms negotiate you.

Which contract terms should make me think twice?

• Sole selling rights, or a ready, willing and able clause tucked into a sole agency contract.
• A tie-in well beyond 12 weeks, or a long notice period stacked on top of it.
• A withdrawal or marketing fee that was never mentioned at the valuation.
• An open-ended introduction clause with no time limit.
• Handwritten additions you did not ask for.

How can I compare agents' fees and terms before I sign?

ValuQ gives UK homeowners free, side-by-side property valuations from competing local estate agents. Agents see the property brief, not your name or number, and never get your details until you choose. Each agent's valuation, fee and strategy sit side by side on one screen, so you can see whose terms suit you before you speak to any of them.