Whats the difference

slackgarry

Please explain 'Sole Selling Rights' and 'Sole Agency' contract.

eddddy

'Sole Selling Rights' and 'Sole Agency' are both legally defined terms

Estate agents are supposed to use the following precise wording: in their contracts:

“SOLE SELLING RIGHTS

You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, in each of the following circumstances—

• if [unconditional contracts for the sale of the property are exchanged] in the period during which we have sole selling rights, even if the purchaser was not found by us but by another agent or by any other person, including yourself;

• if [unconditional contracts for the sale of the property are exchanged] after the expiry of the period during which we have sole selling rights but to a purchaser who was introduced to you during that period or with whom we had negotiations about the property during that period.”

"SOLE AGENCY 

You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, if at any time [unconditional contracts for the sale of the property are exchanged] —

• with a purchaser introduced by us during the period of our sole agency or with whom we had negotiations about the property during that period; or

• with a purchaser introduced by another agent during that period.”

Link: https://www.legislation.gov.uk/uksi/1991/859/made

slackgarry

That's great, Thanks for that, What is it called when you use more than 1 agency ?

user1977

slackgarry said:

What is it called when you use more than 1 agency ?

Desperation?

Or "joint agency" generally.

eddddy

slackgarry said:

That's great, Thanks for that, What is it called when you use more than 1 agency ?

Usually,

• "Joint Agency" would mean 2 agents - who are competing against each other. (Only the agent that secures the sale gets a fee.)

• "Multi Agency" would mean more than 2 agents - who are competing against each other (Only the agent that secures the sale gets a fee.)

• Sometimes 2 Agents will work together and co-operate, and split the fee (but that's normally for a big project - not selling just one house/flat). They might call that "Joint Sole Agency". 

(But those aren't legally defined terms, so it's a case of reading the agent's contract to see how they define them.)

Typically agents will want a higher fee for "Joint Agency" or "Multi Agency" - maybe 3% instead of 1% - because the risks are higher. One agent might do lots of work, then a competitor closes the deal and gets the fee, and they get nothing.