1. What type of agency rights are you granting?
Read the exact definition, not only the label. A sole-agency agreement and sole-selling-rights agreement can create different fee obligations. Under sole selling rights, a fee may be due even if the seller finds the buyer. If more than one agent is involved, dual fees may arise depending on the contracts.
- Length of the initial tie-in period.
- Notice required to terminate.
- What happens to buyers introduced during the agreement.
- Whether a withdrawal or marketing charge applies.
- Whether the agent can appoint sub-agents.
2. What is the total fee, including VAT and extras?
Compare the amount payable at realistic sale prices. Check whether the percentage is quoted including VAT, what triggers the fee and whether photography, floorplans, portals, an EPC, accompanied viewings, auction services or withdrawal are extra.
Ask for a worked example in pounds. For an inherited property, confirm that the personal representative signing has authority and that the invoice will be addressed correctly to the estate.
3. Are referrals and connected services transparent?
An agent may recommend a conveyancer, mortgage broker, surveyor or other service. GOV.UK says you must be told if the agent receives a referral payment, and you do not have to use the recommended firm.
- Ask who pays the referral fee and how much it is.
- Confirm that declining the recommendation will not affect marketing.
- Choose a conveyancer able to handle probate and the title position.
- Keep the recommendation separate from the decision to appoint the agent.
Questions to ask before signing
- Is this sole agency, sole selling rights or another arrangement?
- Exactly when can a fee become payable?
- What is the total fee including VAT at the proposed asking price?
- How long am I tied in and how do I give notice?
- Can another agent later claim a fee for the same buyer?
- Which recommended services generate a payment to you?
Official starting points
General educational information for England and Wales, not legal or estate-agency advice. Contract wording and circumstances differ; obtain qualified advice where appropriate.