Clause to avoid. Delete it from your agents agreement!

Estate Agents are becoming increasingly worried about the Internet and in particular Private Sales via the internet because the fee stays in the buyer’s/seller’s pockets rather than theirs.

This was underlined recently in research by Badger Holdings (who operate as Townends and Regents estate agencies in the Southeast) which found that just three per cent of their viewing and buying activity was generated by local newspaper advertising. Badger measured activity over a month and found that that approximately 56% of buyers who registered with them, and 41% of all viewings arranged were generated by online activity. This contrasted with just three per cent for traditional local newspaper advertising. They have therefore decided to ‘rationalise’ advertising in their local papers and to increase their online coverage.

But beware! Because Private advertisers have equal access to the internet some Agents are being advised to put new clauses in their agreements to try to claim the fee for themselves even if the property is sold privately over the internet.

It is reported that Agents are being advised to insert a clause similar to the following:

“you will be liable to pay fees to us in addition to any other costs or charges agreed if at any time unconditional contracts for the sale of your property are exchanged:

In this agreement references to ‘another agent’ includes any person operating an internet site or using other electronic media to advertise properties for sale whether or not they do so with the authority of the owner of the property. ‘Introduced’ includes any person introduced by us to your property through browsing on an internet site or viewing other electronic media used to advertise your property for sale.”