Clients who signed a ‘sole agency’ agreement with an estate agent, but sold their property through an internet provider, could be liable for two sets of fees, the OFT revealed.
With an increase in the number of online estate agency organisations, the OFT called for greater understanding of the role of estate agents, and their role in property transactions.
The announcement comes a month after Tesco was forced to close its online property portal, as fears grew that it would have to become regulated, as it was offering an estate agency service without being regulated. Tesco has since confirmed that it would re-launch its offering with a dedicated service.
Hugh Nichols, partner at Badbury Berkeley Financial Services, commented: “Estate agents should be forced to make it clear at the beginning what their clients can and can’t do, but as they are unregulated, they get away with a lot.
“The client should reserve the right to sell the property how they see fit, but the sole agency agreements make this difficult.”
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