How To Get Out of an Estate Agent Contract

Can you get out of an estate agent's contract?

Estate agent contracts... they often contain in fine print, details that you simply cannot afford to forget.

Take it from us, we look over several different agents' contracts on almost a daily basis. They are all slightly different with their own nuisances, hiding the caveats, loopholes and technicalities.

What you need to look for is the tie-in period. Almost every estate agent has them, and they range from 4 to 12 weeks typically, with some sneaking in a little extension clause that can take it to 20.

But don't worry, we're not an estate agent. We're the opposite; we understand it can be frustrating waiting for the contract to run down with your agent doing little to nothing to sell your property.

We're here to help, so if you're reading this at the mercy of a complex contract (sole or dual agency), relax - there is a way out! Here's how to get rid of your real estate agent and sell your house FAST...

Table of Contents

• Why do estate agents make you sign a contract?

• Types of estate agent contracts

• Is there a cooling-off period when signing with an estate agent?

• Can I get out of my estate agent contract?

• Can an estate agent sue a buyer for withdrawing?

• What are my sale options?

Why do estate agents make you sign a contract?

The intentions of the estate agent contract are good, initially. It is a legally binding agreement that details the fees and outlines their terms of service, including responsibilities. You must sign this before the estate agent will market your property.

It's understandable. In the initial stages, the estate agent will spend time and resources getting your property on the market, including the photography, marketing and launching the listing, as well as the relatively small fee to the likes of Rightmove or Zoopla.

They want to protect their interests, and to some extent it protect you by providing an outline of what they are going to deliver for the service, as well as the clear cost.

But there are a few issues and things to be aware of in the fine print.

• Do they have sole selling rights? - The first (and most obvious) thing you need to identify within an estate agent's terms and conditions of sale, would be how they'll be appointed. Will they be the sole agent? If you change your mind, will they be happy to go joint agency? Or, is that something they'd penalise you for? Make the wrong move here and you could find yourself tied into a more complex agreement than you first thought. To discover all the different types of estate agent contracts, as well as what they mean, keep reading.

• Tie-in periods - Agents are crafty. Remember, they want you under their wing for as long as possible. The longer they have to market your house, the more likely it is to sell. Hence why some estate agent contracts come with lengthy tie-in periods of as long as 10 or 12 weeks! Spot one of these and you've not only saved yourself from signing a dicey contract but also from using what can only be described as a bad agent. Usually, good agents have relatively short tie-in periods for a reason - they're confident they'll deliver and that you'll stay with them if the sale takes longer than expected.

• Payment arrangements - No two estate agents are the same, so as you'd expect neither is the way they take payment. Some (mostly online agents) will demand payment upfront - a caveat of their contract - whereas others will only request payment upon completion. These are usually your high street agents. And while the fee you pay both is labelled the same (usually an 'estate agent's fee'), what it's actually for is different. One is the cost of selling your house, while the other is a fee to market your house. Don't ever forget that!

• Marketing and advertising - While all agents will say that property marketing is a necessity, that's not to say they'll include it in their contract. You see, while some agencies do include marketing support as part of their fee, others do not. So before you sign a contract, be sure you're aware of what market support/ tools you'll need. If there are any mentioned, check the fine print to make sure they don't come as extras (cough) hidden charges. And if there's a form of marketing that you don't see on the contract, ask! The agent may have left it off for a reason. No one likes a surprise bill for a virtual tour or property listing because they neglected to take out their reading glasses.

• Withdrawal fees - Speaking of withdrawal fees, make sure you fully understand an agent's philosophy on withdrawals before signing on the dotted line. Ask to see a few agent's contracts and you'll see that many differ in length; estate agent contracts can be brief for a reason. They may wish to generalise a certain aspect of what they offer, so you don't realise what you're signing. Or, they may just want you to sign as fast as possible. Take it from us, probe an agent with any questions that enter your head and only pull out of a contract if you're 100% certain of what the costs will be.

Types of estate agent contracts

For anyone looking at how to get out of a real estate agent contract, you first need to understand what type of contract you have. As with most legal documentation these days, each company has their own version - there's no one-size-fits-all estate agent contract. They come in four types, and even then, each agency has its own version of each type. Mind-boggling stuff! Nevertheless, to help you understand which type you're looking to cancel, here's a quick side-by-side visual comparison of the two main types:

Is there a cooling-off period when signing with an estate agent?

The short answer is yes.

Since 2014, all estate agents in the UK have been obliged to offer a cooling-off period of at least 14 days. According to Citizens Advice, it's your legal right to cancel a service you've arranged during this period, for any reason, and get your money back.

You see, an estate agent's cooling-off period only begins when you are first informed of it. So, if you look back in your contract and there's no mention, or what is it isn't very transparent, then cancelling your contract with the agent may actually turn out to be a lot simpler than you imagined. In fact, if this is the case the odds are overwhelmingly in your favour. Even if it does state so in your contract, but you weren't told of it in person, we'd also advise you give this a go. Government legislation dictates that you need to be 'informed' of your right to cancel.

Want to explore all the legal small print? Click here.

FYI: While agents are obliged to offer a 14-day cooling-off period, that doesn't mean you can't be asked to waive it. With many agents, if you agree to start arranging the specifics of your sale before the end of this period (photography, floor plans, etc), then you could be signing away your rights to your 14-day cooling-off period.

Always check the fine print and ask about the details of this period. It is legal for the company to ask you to waive your rights, so make sure that if you are doing so, you're 100% confident in the service.

Can I get out of my estate agent contract?

Now we've done all the explaining of the nuances of the contracts, types, things to look for and cooling-off periods, let's take a look at the main reason you're here.

Can you get out of your contract? Let's have a look.

• Go through the T&Cs carefully

Dig out the Terms and Conditions that you signed when you instructed the estate agent. You need to read through this with a fine-tooth comb; it will contain everything you need to know about whether you can get out of the estate agent contract.

If there is a minimum contract period, then it's likely that you will need to keep the property marketing with the estate agents for that period. There may, however, be certain terms that allow you to exit, or the ability to exit after a certain shorter period if you cover the marketing costs, for example.

There's a particularly interesting conversation around this topic in relation to a user wanting to sell privately outside of the estate agent on Moneysavingexpert.

• Be careful around the "Termination" section

Hopefully, you've had a good read through the terms and conditions, as per the first point. If you have, then you'll likely have a section within it around withdrawal or termination.

This will tell you how long the initial tie-in is, and should give you an idea of the cost to terminate the contract. Depending on the company, as we eluded to before, this could be just the marketing costs, which, although an unwanted cost, may be worth paying if you have an alternative sale lined up.

One very common thing that catches people out is providing notice. You may be required in the contract to provide a certain amount of notice to withdraw; always do this in writing.

• Pay or negotiate the stated withdrawal fee

If you do want to terminate the contract, if it's water-tight, you may have no option but to pay the fee.

But it may be worth trying to discuss with them and see if you can come to an agreement. They will want to keep hold of you, but perhaps you can suggest if they get "x" viewings by a certain date, sometimes they can be receptive if you are willing to work with them.

Just make sure whatever the agreement is, you get it in writing, or you could end up like this customer on Just Answer Law, who is in a tricky situation due to a verbal "on hold" agreement.

• Contact The Property Ombudsman

If something doesn't seem right in the terms or conditions, and you have a disagreement about a certain aspect of the contract, then you can contact The Property Ombudsman and get them to review the case.

They offer a free, impartial and independent Ombudsman service for resolving disputes between consumers and property agents.

• Seek legal advice

If you're still unsure whether you can get out of the agreement, then we would highly recommend seeking legal advice from a solicitor who specialises in property law.

Can an estate agent sue a buyer for withdrawing?

An estate agent is just like you or anyone else - they 'can' sue you. However, that's not to say that they will. In fact, it's VERY rare for an agent to go in all guns blazing and sue a buyer, especially if it's just from withdrawing from a contract. Look at it this way.

You withdrawing your contract and violating the terms is going to cost the agent: (A) a lot of time and (B) a good chunk in court costs. Not only that but if word gets out that they've taken one of their clients to court, it could very easily scar their reputation. Hardly the ideal reputation to have when trying to win over customers.

So to sum up then, by taking you to court it would cost the agent:

• A large chunk of time in which they could put into selling other properties to very easily make the money back.

• Court costs, which as we know these days, don't come cheap.

• Their reputation, could lower consumer confidence and prevent a lot of people from listing their house through them.

But none of this stops you from suing them. Although if you're unsatisfied that shouldn't be your first port of call. Before any legal action, you should take your complaint to the Property Ombudsman - a government scheme which can issue compensation of up to £25k.

You can also make a complaint direct to the National Association of Estate Agents - the trade association that most agents will be part of. Only in the event that neither of these methods comes up trumps should you pursue legal action.

What are my sale options?

Are you able to break free of your estate agency contract, or perhaps you just need to get something lined up before that initial lock-in period is out of the way?

If that's the case, you're left with a few options.

• Go back to another agent - You should now be able to get yourself a better deal. Not that it'll be any better in terms of time, though. Open market sales are still notoriously slow and open you up to all the hassle that comes with finding a buyer... again. Nevertheless, they're still a viable option for you.
  

• Take a trip to an auction - Another, potentially faster route you could explore is taking a property to an auction. Do so, and you'll usually be able to sell your house on the day of the sale. However, in order to do so, there'll be a fair amount of 'auction prep' you'll need to do beforehand. Couple that with the faff of conducting viewings and the stress of setting the correct guide price, and you're still not certain of securing a sale. Plus, auctions aren't cheap. There are administration charges, commission on the sale, marketing costs to cover - the list goes on.
  

• Sell house fast - As an industry-leading cash buyer of property, we can take your house off your hands in less than 7 days, regardless of its location or condition. Our team of property pros have in excess of over 100 years of experience in buying homes and is equipped with the industry know-how to get you moved FAST!

If you're interested in exploring our sales route, we'll also make sure you have no fees to pay either. We cover your solicitors. We cover your survey. And we offer you a cash sum for your property, which can be in your bank as soon as next week. Plus, our team can also help you save money!

Best of all, it's free to have a chat and find out exactly what we'll offer!