How to exit your estate agent contract
If your instructed estate agent isn’t living up to its hype - or you start to question its valuation of your property - you may decide to leave them. Move Places’ guide to exiting your contract and what penalties you may have to pay is a good place to start for sellers having doubts.
What is an estate agent’s contract?
When you instruct an estate agent to sell your home, they will ask you to sign a legally-binding document or ‘contract’ that sets out the terms and conditions. There are several different types, and each agent’s contract will be different, but they usually include:
- what the estate agent will do and what the seller will do
- how the fees are calculated and an estimate of them
- any other expenses to be paid by the seller, such as marketing costs
- how the contract can be ended
- at what point the seller is liable to pay the agent’s fee or commission
- an explanation of key terms
- which redress scheme the agent is a member of
Why leave an estate agent before the contract ends?
Selling your home is a highly stressful and often emotional time, and sometimes you may change your mind about an aspect of the sale. Perhaps your initial impression of the agent was good but their performance hasn’t lived up to expectation? Maybe there has been a lack of viewings and offers, or just a stream of time wasters? It could be that you have found a buyer elsewhere and no longer need your instructed estate agent.
Is it possible to exit the contract early?
As standard, estate agents must give you 14 days from the date you entered the contract in which to change your mind, so if you’re having doubts in the first two weeks, ending the contract should be quite straightforward.
After the first 14 days, it should be possible to give 28 days’ notice in writing but the most important thing is to read your contract carefully before you sign it, especially the small print!
How about ‘tie in’ periods?
A ‘tie in’ period is a clause in the contract that means you can’t leave your agent for a set period of time. Agents commonly set this to between 8 and 12 weeks but anecdotal evidence suggests some contracts have featured tie-in periods of 20 to 24 weeks. If you’re not happy with the tie-in period stated in your contract, you are within your rights to ask for this to be reduced, giving you more flexibility if your agent fails to sell your home in a timeframe that suits you.
What penalties might I have to pay to leave the contract early?
When you give notice, you may be asked to pay a penalty or fees. This will ultimately depend on the wording on your contract. Certain types of contract force you to pay a penalty if someone who was introduced by your agent decides to later buy your property, even several months after the contract ends. Alternatively, you may have agreed to pay for marketing costs, such as advertising.
Let Move Places help
If you are not happy with your current estate agent’s contract and need help navigating your way out of it, then our advisors can help. Move Places can also help you sell your home in a quick and hassle-free way. We pride ourselves on our excellent service, so get in touch with our team.