Agency agreements: sole agency, general agency and what to check

It must be in writing first

There must be a written agency agreement, signed by you or on your behalf and by the agent, before the agent does any work. You are entitled to a copy within 48 hours. For a residential sale you must also be given the Real Estate Authority's agency agreement guide.

Sole agency

A sole agency gives one agency the exclusive right to market and sell your home. If you sell it privately during the agreement, you still owe that agency its commission. Signing with a second agency as well risks paying two commissions.

General agency

A general agency lets more than one agency market your home, each under its own separate agreement. The agencies must tell you if there is any risk of paying two commissions, and you should pay commission to one agency only.

Joint sole agency

Two or more agencies can also share a listing under a joint sole agency. Ask how the work and the commission are split, and that it is written into the agreement.

How long it runs, and cancelling

Every agreement needs an end date or a set length. For a residential sole agency longer than 90 days, either you or the agency can cancel after the first 90 days. You can also cancel in writing in a short window after receiving your copy: until 5.00 pm on the first working day, or five working days if the agency approached you without you asking first. Taking your home off the market does not cancel the agreement; you cancel in writing.

Some agreements keep commission payable for a stand-down period after they end, if you sell to a buyer the agency introduced. Check for it.

What the agent must explain before you sign

A written estimate of commission and how it is worked out, any rebates or commission the agent receives from others, the marketing costs, your sale options (auction, tender, advertised price), and a recommendation to get legal advice. The agent must also check your identity under anti-money-laundering rules and tell you about any conflicts of interest.

A note on advice

This page is general information, not legal, tax or financial advice. Talk to your lawyer or conveyancer, and an accountant for tax, before you decide.