Institute advice on sole agency selling

Press, 14 September 1988, Page 57

Institute advice on sole agency selling

Inquiries are frequently received from people concerned about methods by which real estate agents are able to list and sell their homes, particularly where sole agencies are involved.

Vendors of course have the right to list their properties with as many agents as they so desire, but listing with one agent is not necessarily a sole agency. Authority for the agent to sell as the sole agent must be given by the vendor, in writing. As part of the listing contract a specified period of time for the sole agency should be clearly defined.

A sole agency precludes all other agents from working on the disposal of the property, although another agent may approach the sole agent if the former has a suitable client. But even then the sole agent would tie up the deal.

Agents generally hold the view that the type of property being offered for sale and the demand for it at the time dictates the period of time for which the sole agency is given. On a healthy market it may be no more than a month. However, where the market is slack, or the home is of a special type where there is a limited demand, such as a large house with a multitude of rooms, the period of time may be three or four months. The main benefit of a sole agency is the obligation it places on the agent to provide a sale. The agent is bound to work that much harder to sell the property and, according to the code of ethics by which he must work, to use skilled and energetic services. If he is unable to do so he must not accept a sole agency.