exactly what to check before you sign. You’ve had three agents round. You’ve agreed a fee. They’ve emailed over the contract. It’s 6 or 7 pages of legalese, and you’re busy — so you sign it, send it back, and get on with your day. That 10-minute decision can cost you anywhere from £3,000 to £15,000. Sometimes more. Estate agency contracts are legally binding commercial agreements. They contain clauses that govern when you pay, who you pay, for how long you’re locked in, and what happens if things go wrong. Most sellers never read them properly. Most agents would prefer it stayed that way. Hauseit is an independent, licensed estate agency. We know exactly what’s in these contracts because we write them ourselves — and we’ve seen what happens when other agents’ contracts come back to bite their clients. This guide walks you through the 10 clauses that matter most, what to look out for, and what you should ask before you sign. This article is not legal advice. It is a plain-English explanation of common estate agent contract clauses in England and Wales. Always read your full contract carefully, and if anything is unclear, ask the agent to explain it in writing — or consult a solicitor before signing. 1 Sole Selling Rights vs Sole Agency This is the single most important distinction in any estate agency contract — and the one most sellers don’t understand until it’s too late. The two terms sound almost identical. They are completely different.
WHAT IT SAYS
‘The Agent shall have Sole Selling Rights for a period of 16 weeks.’ WHAT IT REALLY MEANS Under Sole Selling Rights, the agent is entitled to their commission if the property is sold during the contract term — even if you find the buyer yourself, even if your neighbour knocks on your door, even if your cousin buys it. You pay the agent regardless.
WHAT TO DO
Insist on ‘Sole Agency’ — not ‘Sole Selling Rights’. Under Sole Agency, you only pay commission if the agent (or another agent) introduces the buyer. If you privately find a buyer yourself, you pay nothing. Potential cost: On a £300,000 home sold privately to a family member while under Sole Selling Rights, you could still owe the agent £3,600 at 1.2% + VAT. Hauseit: If an agent insists on Sole Selling Rights and refuses to switch to Sole Agency, walk away. Any reputable agent will accept Sole Agency terms. This is the clearest red flag in the industry. 3 ‘Ready, Willing and Able Purchaser’ This is one of the most dangerous clauses in any estate agency contract — and The Property Ombudsman has specifically warned sellers about it. Despite the warning, it still appears in contracts across the UK.
WHAT IT SAYS
‘The Vendor shall be liable to pay commission in the event that the Agent introduces a purchaser who is ready, willing and able to complete the purchase, regardless of whether a sale is ultimately concluded.’ WHAT IT REALLY MEANS You can owe the agent a full commission even if the sale falls through — and even if you decide not to sell after all. If someone makes an acceptable offer and has mortgage approval, the agent has technically done their job. If you then pull out, they can still invoice you.
WHAT TO DO
Strike this clause out entirely. Write ‘N/A’ through it, initial it, and ask the agent to initial it too. Alternatively, replace it with ‘commission payable only on completion of sale.’ If the agent refuses, find another agent. Potential cost: A homeowner who receives an acceptable offer but decides not to sell could owe £5,000+ in commission for a sale that never happened. The Property Ombudsman has stated that ‘ready, willing and able purchaser’ clauses should not be used without explicit, clear disclosure at the point of signing. Any reputable agent today operates on ‘no sale, no fee’ — meaning commission is only due on completion. 4 The Post-Contract Introduction Clause This clause means that if someone the agent introduced to your property ever buys it — even months or years after your contract with them ends — you still owe them commission.
WHAT IT SAYS
‘The Agent shall be entitled to commission in respect of any purchaser introduced during the term of this agreement who subsequently completes a purchase of the Property, regardless of when such completion takes place.’ WHAT IT REALLY MEANS Imagine this: Agent A shows your house to 40 buyers over 3 months. No offers. You switch to Agent B. Agent B finds a buyer — but that buyer had previously viewed your property with Agent A 18 months ago. Under this clause, Agent A could claim commission. You could owe both agents the full fee.
WHAT TO DO
Look for a time limit — typically 6 months maximum after the contract ends. Some contracts say ‘indefinitely’ which is unacceptable. Also insist that the agent provides you with a full written list of introduced buyers when the contract terminates, so you can cross-check any future buyers. Potential cost: Double commission on a £400,000 sale at 1.5% + VAT = £14,400 instead of £7,200. Hauseit: When you terminate any agency agreement, always request in writing a complete list of every buyer they introduced to your property. Without that list, you’re exposed to potential double commission claims for years. 5 Automatic Renewal / Evergreen Clauses Some contracts auto-renew at the end of their term — meaning you have to actively cancel, in writing, within a specific window, or you’re signed up for another full term.
WHAT IT SAYS
‘Unless terminated by written notice not less than 28 days prior to the expiry of the initial term, this agreement shall automatically renew for a further period of 12 weeks on the same terms.’ WHAT IT REALLY MEANS You forget. You get busy. The 28-day window passes. Now you’re locked in for another 12 weeks whether you like it or not. We’ve seen sellers trapped in rolling contracts for 9+ months because they missed a written deadline by a few days.
WHAT TO DO
Delete the auto-renewal clause entirely, or replace it with ‘This agreement shall terminate automatically at the end of the initial term unless both parties agree in writing to extend.’ The default should be termination, not renewal. Potential cost: Another 12-week tie-in with a non-performing agent at the wrong price point could cost you the seasonal peak selling window. 6 Marketing & Withdrawal Fees Hidden in the small print of many contracts — particularly online and hybrid agents — are separate fees for marketing, photography, floor plans, For Sale boards, portal listings, and ‘withdrawal costs’ if you take the property off the market.
WHAT IT SAYS
‘In the event that the Property is withdrawn from sale during the term of this agreement, the Vendor shall be liable for marketing costs incurred to date, to a maximum of £1,200 inclusive of VAT.’ WHAT IT REALLY MEANS If you change your mind, decide not to sell, or pull the listing for any reason, you owe the agent a withdrawal fee. This applies even if they haven’t delivered a single viewing. On ‘pay upfront’ online agent models, you may have already paid the full fee and receive nothing back.
WHAT TO DO
Clarify in writing exactly what is included in the commission and what is chargeable separately. Insist on ‘no sale, no fee, no hidden costs.’ If there’s a withdrawal fee, negotiate it down to actual costs incurred — not a flat punitive figure. Potential cost: Online agents typically charge £900–£1,800 upfront, entirely non-refundable. High-street agents sometimes charge £500–£1,500 in withdrawal fees. 7 Referral Fees & Conditional Commissions Many estate agents earn additional income by referring clients to solicitors, mortgage brokers, removal firms, and surveyors. Under UK legislation, these referral fees must be disclosed — but the disclosure is often buried deep in the contract or delivered in a throwaway sentence.
WHAT IT SAYS
‘The Agent may receive referral fees from third-party service providers recommended to the Vendor, which shall be disclosed upon request.’ WHAT IT REALLY MEANS The ‘independent’ solicitor your agent recommends might be paying the agent £200–£500 for your instruction. That conflict of interest can result in slower service, poor communication, or the solicitor prioritising the agent’s deal flow over your actual interests. You end up paying more for worse service.
WHAT TO DO
Ask the agent, in writing, for a full list of every referral partner they receive a fee from and exactly how much. Under National Trading Standards guidance, they are obliged to disclose this. If they won’t, it tells you everything you need to know. Hauseit: Always choose your own conveyancer. Get three independent quotes. A good solicitor saves more money and stress than any referral-based recommendation ever will. 8 Variable / Sliding Scale Commission On the surface, this sounds like a great idea — the agent earns more if they achieve a higher price. In practice, it’s often structured to benefit the agent, not the seller.
WHAT IT SAYS
‘Commission shall be payable at 1.0% of the sale price up to £350,000, and 3.0% of any amount above £350,000.’ WHAT IT REALLY MEANS If your property is valued at £360,000 and sells for £370,000 — the agent earns 1% on £350,000 (£3,500) PLUS 3% on the £20,000 above it (£600). That’s £4,100 total. But the incentive is weak because the ‘above’ band rarely gets triggered in a meaningful way. Meanwhile, structured poorly, these deals can mean you pay more than a straight percentage.
WHAT TO DO
Do the maths on multiple sale price scenarios before signing. Compare the total fee against a simple flat percentage from another agent. Often the ‘incentivised’ structure costs you more overall while appearing competitive on paper. Potential cost: A poorly structured sliding scale can cost 20–30% more than a straightforward 1% agreement on the same sale price. 9 Exclusive Rights to Future Instructions Some agents — particularly in commercial or portfolio contexts but increasingly in residential — try to include clauses that give them first right of refusal on your future property transactions.
WHAT IT SAYS
‘The Vendor agrees to offer the Agent first right of refusal on any future sale, letting, or management instruction in respect of any property owned by the Vendor, for a period of 24 months following completion.’ WHAT IT REALLY MEANS You’re not just signing up for one sale — you’re signing up to use this agent for any future property transactions for up to two years. This is particularly common for landlords and investors and is often slipped into standard residential contracts.
WHAT TO DO
Strike this out. There is no reasonable justification for a future-rights clause in a single-property sale contract. If the agent does a good job, you’ll come back to them anyway. If they don’t, you shouldn’t be contractually obliged to return. 10 The VAT Ambiguity Trap A classic. The agent quotes ‘1% commission’. You assume that’s the total. The contract says ‘1% + VAT’. That’s 20% more than you thought. On a £400,000 property, that’s the difference between £4,000 and £4,800.
WHAT IT SAYS
‘Commission shall be payable at 1.0% of the sale price, exclusive of VAT.’ WHAT IT REALLY MEANS Every estate agent in the UK must charge VAT at 20% on their fees (unless they are not VAT-registered — in which case, that’s also a red flag in itself for a serious agent handling your largest asset). But the way the fee is quoted can be misleading. ‘1%’ sounds better than ‘1.2% all-in’. Sellers often don’t calculate the true figure until the invoice lands.
WHAT TO DO
Always ask for the fee to be quoted in two ways: the percentage including VAT, AND the total pound-amount for your property at the expected sale price. Make sure the contract states both clearly. Potential cost: Misunderstanding VAT on a £500,000 sale at 1.25% commission = £1,250 you weren’t expecting.
Your 10-Point Pre-Signing Checklist
Before you sign any estate agency contract, run through this checklist. If the agent pushes back on any of these, ask yourself why.
- Is this Sole Agency — not Sole Selling Rights?
- Is the tie-in period 12 weeks or less?
- Is the notice period 14 days or less?
- Is it ‘no sale, no fee’ with no ‘ready, willing and able’ clause?
- Is the post-contract introduction period capped at 6 months?
- Has the auto-renewal clause been removed or made opt-in?
- Are all marketing, withdrawal, and hidden fees either removed or clearly listed?
- Have all referral fees and partnerships been disclosed in writing?
- Has the total fee been confirmed in both percentage (inc. VAT) and £ terms?
- Have any ‘future rights’ clauses been struck out?
What a Fair Contract Looks Like A fair, seller-friendly estate agency contract in 2026 should be simple, transparent, and balanced. As a benchmark, here’s what we think every seller should expect:
- Sole Agency (not Sole Selling Rights)
- Tie-in of 8–12 weeks maximum, with 14 days’ notice thereafter
- No sale, no fee — period
- All-inclusive fee covering photography, floor plans, listings, and For Sale board
- No withdrawal fees, marketing charges, or hidden extras
- Full written disclosure of any referral arrangements
- Clear, VAT-inclusive pricing quoted in both % and £
- A complete introduced-buyer list provided on termination
Hauseit: This is exactly how Hauseit operates. Our contracts are designed to be read in 5 minutes, not studied by a solicitor. If you’d like a copy of our standard terms to compare against another agent’s, just email us — no obligation, no follow-up calls.
Before You Sign, Talk to Hauseit.
If you’ve already got a contract from another agent and want a second opinion, we’re happy to read through it with you and flag anything that looks unusual — for free, with no obligation to switch. We’d rather you made an informed decision than a rushed one. And if you’re ready to list with an agent that doesn’t play games with the small print, we’d love to talk. Our terms are simple. Our fees are transparent. Our performance speaks for itself.
Get in touch today: on 0116 216 6777
info@hauseit.co.uk If you’re considering buying or selling a property in the Leicestershire area, or if you’d like a free valuation, don’t hesitate to get in touch with us at Hauseit. Our team is here to guide you every step of the way
