Listing Agent Agreement Template for England and Wales

It's a written contract between a property seller and an estate agent instructing the agent to market and sell the property. It sets out the basis of the agent's authority, the agreed commission or fee, the type of agency (sole, joint, or multiple), any tie-in period, and the services the agent will provide. The Estate Agents Act 1979 requires key terms to be in writing before the agent acts.

Sole agency grants one agent the exclusive right to sell; commission is payable if they introduce the buyer. Sole selling rights go further: commission is payable even if the seller finds the buyer independently. Multiple agency permits several agents to market the property simultaneously, with commission payable only to the agent who introduces the successful buyer. Joint agency splits commission between two agents who market together.

Under the Estate Agents Act 1979, the agent must disclose: the type of agency, when commission becomes payable (including whether it is owed if the seller finds a buyer), the amount or basis of commission, any additional services and charges, and any personal interest the agent holds in the property or the transaction. This information must be provided in writing before the agent starts marketing.

Commission is ordinarily only earned when a binding exchange of contracts takes place, unless the agreement states otherwise. Some agents include a clause making commission payable when they introduce a 'ready, willing, and able' buyer. Sellers should scrutinise this provision carefully, as it can mean commission is owed even if the seller decides not to proceed with the sale.

A tie-in period is the minimum duration for which the seller is contractually bound to use the agent. The Office of Fair Trading (now superseded by the Competition and Markets Authority) issued guidance that tie-in periods beyond eight to ten weeks combined with a lengthy notice period may be unfair under consumer contract terms. Sellers should check both the tie-in and post-tie-in notice period before signing.

Under the Estate Agents Act 1979, agents must promptly pass on all written offers to the seller, unless the seller has given specific instructions to the contrary. Agents cannot suppress or delay offers or misrepresent their terms. Any conflict of interest, such as the agent knowing the buyer personally, must be disclosed to the seller before the offer is presented.

All estate agents marketing residential property in England and Wales must be members of an approved redress scheme under the Consumers, Estate Agents and Redress Act 2007. The two approved schemes are The Property Ombudsman and the Property Redress Scheme. The agent must tell the seller which scheme they belong to in their terms of engagement, and the seller can refer complaints to the scheme free of charge.

Generally, a seller can terminate after the tie-in period by serving the required notice. Terminating within the tie-in period may trigger a contractual penalty or abortive costs clause. Sellers should check whether any marketing expenses (professional photography, portal listings) are chargeable on early termination. A dispute about whether commission was earned before termination should be raised with the agent's redress scheme if it cannot be resolved directly.