These are free to use but at your own discretion. No liability will be accepted for any situation arising from the use of all or part of this suggested contract terms.
3 tips before talking to estate agents:
- Watch Charlie’s “10 Golden Rules for Home Sellers” video.
- Select and engage a conveyancing firm to prepare your property’s paperwork for sale.
- If you don’t already have one, talk to an independent, whole of market mortgage adviser to be sure of your financial position before moving.
Download your own copy for customising here
Terms of Engagement: Sole Agency for Property Sale
(England and Wales)
Parties
Seller: [Enter Name/Current or Correspondence Address]
Agent: [Enter Company Name/Legal Address]
Property to be sold: [Enter Full Address]
Agreed Fee: [e.g., 2% + VAT] of sale price, payable on exchange of contracts.
Initial Launch Price: [Amount/TBC prior to public launch once suitable price identified].
1. Appointment
Seller appoints Agent as Sole Agent with exclusive rights to market and sell the Property. No other agents during term.
2. Term and Termination
Commences on public launch date. Initial 6-week sole agency period. Thereafter, continues until terminated by either party on 2 weeks’ written notice. Termination does not affect accrued liabilities. Seller has 14-day cooling-off right from signing.
3. Expenses
Seller reimburses Agent for direct out-of-pocket expenses (e.g., professional photography, floor plans, EPC, drone footage) incurred during listing, if Seller withdraws from market at any time. Reimbursement within 7 days of invoiced evidence.
4. Multiple Proceedable Offers
If Agent procures 3+ concurrent, proceedable offers within 6 weeks of launch, and Seller rejects all, Agent deemed to have fulfilled duties. Half agreed fee payable immediately.
5. Withdrawal After Acceptance
If Seller accepts an offer, commences legal process (e.g., solicitor instructed), but withdraws, half agreed fee payable within 7 days.
6. Commission Triggers
Full fee due on exchange of unconditional contracts, even if to buyer not introduced by Agent or post-termination (if introduced and viewing conducted during term). Interest at 2% above base rate applies on overdue payments.
6.1 See-Saw Fee Adjustment
If Property fails to sell at Initial Launch Price and Agent recommends reduction, agreed fee reduces proportionally (e.g., 10% price drop reduces 2% fee to 1.8% + VAT). Conversely, if sale price exceeds Initial Launch Price (e.g., 5% higher), fee increases proportionally (2% to 2.1% + VAT). Adjustment calculated on final sale price vs. Initial Launch Price.
7. Marketing and Duties
Agent to market via [e.g., Rightmove, portals]; provide regular updates. Seller to provide access, accurate info.
8. Governing Law
England and Wales. Disputes via Agent’s complaints procedure, then Property Ombudsman.
Signed: ____________________ Date: __________ (Seller)
Signed: ____________________ Date: __________ (Agent)
Note: This is a draft; seek legal advice for customization.