A sole agency agreement gives one estate agent the exclusive right to sell your property. In exchange, you agree to pay commission (typically 1–2% of sale price) if the agent finds a buyer. The catch: sole agency clauses often lock you in for months with no performance guarantee, and commission is due even if you sell privately. Before you sign, understand the termination rights, when commission is triggered, and what happens if the agent underperforms.
What is a Sole Agency?
A sole agency agreement is an exclusive marketing arrangement where one estate agent is appointed to sell your property. You agree not to appoint other agents or market the property yourself. The agent agrees to market the property actively. Commission is typically due when the agent introduces a buyer (or a buyer is 'procured'), regardless of whether the sale completes.
Red flags to watch for
If the agent lists your property but does nothing, you're locked in for a year. A shorter term (3–6 months) is fairer.
Fair terms: commission is due only if the agent introduces the buyer AND the sale completes. 'Procured' should mean a genuine introducer.
Vague terms can lead to disputes. Specify: commission due when offer is accepted? When exchange of contracts? When sale completes?
Penalty commission for private sales or multi-agency is a known unfair practice.
Auto-renewal locks you in indefinitely. Any extension should require mutual agreement.
The contract should specify what marketing activities the agent will undertake (online listings, viewings, promotions).
Commission should be reasonable relative to the price achieved, not a fixed percentage.
Your legal rights
Under the Estate Agents Act 1979, agents must provide a written agreement specifying commission and when it's due. The Consumer Rights Act 2015 requires terms to be fair and transparent. An 'unfair contract term' (e.g., commission for sales you make privately, or excessive lock-in periods) may be unenforceable. The Competition and Markets Authority (CMA) has scrutinized estate agent practices; penalty commission for private sales or multi-agency is a known concern. If an agent breaches the contract (fails to market, misrepresents), you may have grounds to terminate early or challenge commission.
Questions to ask before you sign
- 1What is the sole agency term, and when can I terminate it?
- 2What is the commission percentage, and when is it earned/due?
- 3If I find a buyer privately, do I still owe commission? (And for how long?)
- 4What marketing activities will you undertake (online, print, viewings, promotions)?
- 5Can you extend the sole agency period automatically, or do I need to agree?
- 6If the property sells for less than your valuation, is commission adjusted?
- 7What happens if the sale falls through — is commission still due?
- 8What is your track record for this property type, and what's your average time to sale?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.