Sellers: The Checks to Make Before Signing Anything

Most people choose an estate agent partly on instinct.

You invite two or three agents into your home, listen to their advice and decide who feels right. One may seem more confident, another more likeable, while somebody else gives you the highest valuation.

There is nothing wrong with trusting your instincts. Selling a home is personal, and you need an agent you feel comfortable speaking to. However, before signing an agreement at the kitchen table, it is worth spending twenty minutes checking exactly what you are agreeing to.

We are estate agents, and our advice is simple: slow down, read everything and ask questions. These checks apply to JDG just as much as they apply to anybody else.

Is the estate agent properly registered?

Every residential estate agent in the UK must belong to an approved redress scheme. The two approved schemes are The Property Ombudsman and the Property Redress Scheme.

This gives you somewhere independent to take a complaint if you have been unable to resolve it directly with the agent. It is a legal requirement, not an optional badge.

Ask the agent which scheme they belong to and check their website. You should receive a clear answer immediately. If an agent seems reluctant to tell you, take that seriously.

Is your money protected?

This is particularly important if the agency also handles lettings or manages property.

Since April 2019, letting and property management agents in England that hold client money have been required to belong to an approved Client Money Protection scheme. This protects money held on behalf of landlords and tenants if, for example, an agency closes or client funds are misappropriated.

The agent must display its Client Money Protection certificate at its premises and publish it on its website. If you are a landlord, ask which scheme the agent belongs to and request a copy of the certificate.

What should you check in the agreement?

This is often where problems begin. Not necessarily because information has been deliberately hidden, but because sellers understandably focus on the valuation and fee rather than the smaller details.

Before signing, check the following:

1. What type of agreement is it?
   Sole agency and sole selling rights are not the same. Under sole selling rights, you may still have to pay the agent if you find the buyer yourself.

2. How long is the minimum term?
   A tie-in period is not automatically unreasonable, but you should knowingly agree to it. Ask what happens if you are unhappy with the service.

3. What is the notice period?
   Find out when notice can be given and when it takes effect. A twelve-week agreement followed by four weeks’ notice may keep you tied in for longer than expected.

4. Are there any additional charges?
   Ask about photography, floor plans, advertising, withdrawal fees and charges if you decide not to move. Get the complete cost in writing, including VAT.

5. Could two agents claim a fee?
   This can happen when a seller changes agents and a buyer introduced by the first agent later purchases the property. Before switching, ask both agents how previous introductions will be treated.

None of these questions is awkward or unreasonable. A good agent will explain the answers in plain English.

What should you expect from a good estate agent?

You should receive a valuation supported by evidence. That means comparable homes, achieved selling prices and an honest discussion about current demand in Lancaster—not simply the highest figure an agent thinks will win your instruction.

The fee should be clearly stated, including VAT, and you should know exactly what is included.

You should also be given time to read the agreement. Taking it away overnight is perfectly reasonable. There should be no pressure to sign while the agent is still sitting at your table.

Ask who will handle your sale once you accept an offer. Selling a home does not end when the board changes to “Sold”. Sales progression, communication with solicitors and keeping the chain together can make an enormous difference.

What are the warning signs?

Be cautious if you are pressured to sign immediately or given a noticeably higher valuation without convincing evidence.

Other warning signs include vague fees, unexplained contract terms, reluctance to name a redress scheme and suggestions that reading the agreement is unnecessary.

You should also question any claim that you must use a particular solicitor, mortgage broker or conveyancer. You are entitled to make your own choice and to be told if the agent receives a referral fee.

Why did JDG join the Ethical Agent Network?

We joined because we believe customers should be able to expect more than the legal minimum.

The Ethical Agent Network is a national group of independent estate agents assessed on honesty, professionalism, service and community care. Membership cannot simply be purchased. It must be earned, and it can be taken away if those standards are not maintained.

We are proud to be the only local agency in the network, but we would still encourage you to make these checks when considering JDG. Good agents should welcome informed questions.

 

 

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Frequently asked questions

Do estate agents have to belong to a redress scheme?

Yes. Residential estate agents must belong to an approved scheme. The two approved schemes are The Property Ombudsman and the Property Redress Scheme.

What is Client Money Protection?

It protects client money held by a letting or property management agent, including rent and other funds held on behalf of landlords or tenants.

What is the difference between sole agency and sole selling rights?

With sole agency, you will not normally pay the agent if you find the buyer independently. With sole selling rights, a fee may still be payable. Always check the precise wording.

Can two estate agents charge me?

Potentially, particularly if you change agents and the eventual buyer was originally introduced by the first one. Clarify this before signing a new agreement.

What are the main warning signs?

Pressure to sign, an unsupported valuation, unclear charges, restrictive contract terms and reluctance to answer straightforward questions should all make you pause.

If you know somebody preparing to sell their home, please share this with them. Twenty minutes spent checking an agreement could prevent months of frustration later.

JDG Estate Agents is a proud member of the Ethical Agent Network. To learn more, contact our Lancaster team or visit www.ethicalagentnetwork.co.uk.