Estate Agents Guidance

Videos & Text

• Satisfaction - Video Guide

• Satisfaction - Text version

  These are the ratings we use to measure customer satisfaction for Estate Agents. We ask buyers and sellers to give a rating out of 10 for each aspect, and to say if they would recommend them based on their overall experience.

  Buying or selling a property is the largest transaction that most of us will ever undertake, so Buyers and Sellers expect agents to act professionally.

  Agents should have a detailed knowledge of the local area. The types of property, the  neighbourhoods, the  amenities, the  schools, the  transport links and the demographics. They should be aware of the current supply and demand for property, and the price achieved for recent sales of comparable properties in order to advise a realistic valuation.

  Buying or selling a property isn't just more expensive than buying a phone, or a car, but it's also complicated, and takes time to complete, especially when there are several properties involved in a chain. All of this can be very stressful. By staying in contact with surveyors, solicitors and the agents for other buyers and sellers in the chain, agents can help to progress the transaction. They can support their clients not only by sharing their knowledge and expertise,  but also by reassurance and advice to deal with the stress and uncertainty that often arises.

  An agent's main responsibility is to negotiate the best deal for their client, the seller, but they must also build a rapport with potential buyers, so they can work with all parties in spite of their conflicting interests.

  Where there are offers from more than one potential buyer, the agent must consider a number of factors. Do they have a mortgage in principle, a cash offer, or a property to sell? How quickly do they want to proceed? Are they flexible about dates, fixtures and fittings, or survey results? If they are in a chain, how many properties are involved? Agents must suggest which offer they consider represents the best deal for the seller, handle any objections or issues and reconcile the competing interests of buyer and seller in an ethical way.

  Sellers have a choice between high street and online agents, depending very much on their perception of value for money. Traditional agents offer a physical presence via a local office to provide support and guidance throughout the selling process and aim to achieve a higher price for the property. Online agents aim to provide much of the same support over the phone and online, but have less overheads and generally charge lower fees as a result.

• Standards - Video Guide

• Standards - Text version

  These are the commitments we believe you should expect from estate agents.  

  We ask buyers and sellers to tell us if the business has lived up to these promises, and we show the overall percentage score.

  Agents must clearly  explain their fees and terms of business to potential clients. They must confirm this in writing and give the seller enough time to read and consider the terms before they sign. Agents mustn't begin marketing the property until they have this instruction, and have given a copy to the seller.

  Agents have a duty of care towards the seller. They mustn't do anything which might undermine that relationship or cause a conflict of interest.  If they intend to offer services to potential buyers, such as mortgages, surveys, insurance or conveyancing, then they must tell the seller and let them know if the buyer applies to use one.

  The agent must agree the sales particulars of the property with the seller, clearly marked as draft or needing approval until the seller has approved it.  All of the information must be accurate and not misleading. This also applies to any photos or verbal explanations, for example during viewings. Buyers can't be assumed to pay attention to the small print.  Nothing material must be left out which might affect a buyer's decision, and any key points must be properly explained.

  The agent must agree the viewing arrangements with the seller, when and how to access the property and whether the seller would like to be involved. If the agent holds the keys, then these must be kept securely and the agent must accompany anyone viewing the property. Each viewing should be scheduled in advance if possible, especially if the property is occupied.  

  The agent must keep a record of each viewing, giving the seller feedback and confirming the details of any offers to both parties. If offers are made by more than one potential buyer, then the agent must tell each buyer about the existence of the other offers. With the seller's agreement, they should also be told the amount.

  It's illegal for agents to add conditions such as requiring the buyer to use other services, such as mortgages, surveys or conveyancing, whether provided by them or by anyone else.

  In England and Wales, when the seller accepts an offer from a buyer, the price is agreed but the sale isn't legally binding until contracts are exchanged.  This is called sold, subject to contract, or SSTC. Either party can pull out of the deal without any penalty. Different rules apply in Scotland.

  The seller may decide to keep the property on the market, or withdraw it from sale. If it stays on the market, then the buyer must be told and any marketing must make clear that an offer has been accepted, subject to contract.

  There are strict regulations to prevent money laundering. Estate agents must register their premises with the appropriate authority, usually the HMRC's Supervised Business Register.

  Agents are required to conduct "due diligence".  This means identifying the buyer and taking steps to make sure they are who they say they are.  Additional checks may be needed if there's a higher risk of money laundering or terrorist finance, for example if the buyer is from a high risk country as identified by the UK Government.

  If a buyer or seller has a complaint about the agent that can't be resolved, they can complain to a redress scheme. This process is known as Alternative Dispute Resolution, or ADR, because it offers  the alternative to going to Court. 

  Agents that deal with residential properties must join a redress scheme approved by National Trading Standards and display this information clearly on their website, in their offices and on all documentation.

  This video is for general guidance only. It's not a substitute for legal advice and may not address your individual circumstances. Different rules apply in Scotland.

  For more complete information please visit the following websites. The Estate Agents Act, sets out the law to ensure that buyers and sellers are treated fairly, and the regulations are overseen by the National Trading Standards Estate Agency Team.