Selling your house can be easier if you have a good estate agent.
There are several different types of estate agency agreement. And ‘sole selling rights’ is one of the most common.
Below, we’ve explained what this means and how long sole selling rights last.
What are sole selling rights?
Sole selling rights means that only one estate agent has the right to sell a house.
This is an exclusivity agreement signed between the seller and the estate agent.
During the sole selling rights agreement, even if the seller finds a buyer privately (without the estate agent’s help), they’ll still need to pay a commission.
This is the case with almost all exclusivity contracts.
How long do sole selling rights last?
A typical period for sole selling rights to last is 8 weeks. Some go for much longer, up to 16 weeks or more.
You should thus read the small print carefully and get the support of a qualified solicitor.
How common are sole selling rights?
Sole selling rights are among the UK’s most common types of estate agency agreements.
It’s beneficial for the estate agent. And some organisations have a policy that this is the only type of contract they’ll consider.
Other types of agreement include a ‘sole agency’ clause.
This is similar to sole selling rights but only results in commission if the estate agent introduces the seller to their buyer.
If the seller finds someone privately, no commission is due.
Multi-agency contracts involve hiring several estate agencies simultaneously to sell your house.
The commission goes to whoever introduces you to the buyer. This can create competition and urgency.
Advantages of sole selling rights
From a homeowner’s perspective, there are several reasons that a sole selling rights arrangement could be attractive.
1. Estate agent is motivated
Experts argue that estate agents are more motivated under a sole selling rights arrangement.
They feel that you have placed your trust in them, and they want to repay that. There’s also nowhere to hide.
And if a suitable buyer isn’t found by the end of the contract term, you’ll often go elsewhere. This gives a financial incentive.
2. Easy to coordinate and communicate
You typically have one point of contact under a sole selling rights arrangement. This can avoid confusion.
It also avoids feeling overwhelmed with too much information flying back and forth.
You don’t need to coordinate with many different estate agents – only one.
3. Lower commission rates
Estate agents will often give you a financial incentive to sign a sole selling rights contract.
This usually is done via a lower commission rate.
Speak to your estate agency to see if this is the case and how much they will reduce it.
Disadvantages of sole selling rights
Sole selling rights contracts come with a few downsides, too.
You should be wary of all these before jumping into the arrangement.
1. Can’t leave midway through without a cancellation fee
You can feel a bit stuck if you’re unhappy with your estate agent’s performance.
This is because you can’t leave the contract without a cancellation fee. In many cases, this can be expensive.
Make sure to clarify these details before signing.
2. Estate agents may be complacent
Many homeowners are worried that estate agents get complacent with sole selling rights.
That’s because they don’t have any competition and know the seller is ‘locked in’. This stops them from taking urgent action to find you a buyer.
3. Potentially fewer buyers
You’re only relying on one estate agent to sell your house. This means that you’re dependent on their network of buyers.
If this is unsatisfactory, you could get fewer viewings than a multi-agency agreement.
Things to consider before agreeing to sole selling rights
You should put careful thought into signing a sole selling rights contract. It’s crucial that you get the support you need.
Get a solicitor
First, you should always have a solicitor review the contract.
There may be hidden fees or something that’s ‘unusual’, which they can pick up on. This prevents a nasty surprise further down the line.
Get confirmation of contract length
Get confirmation about how long the contract lasts. And if you want to quit early, ask what the penalty is for this. This allows you to prepare for a worst-case scenario.
Negotiating
Negotiating is an important part of buying and selling a home.
It doesn’t just apply to selling prices. You can sometimes negotiate estate agent fees, too.
Try negotiating on a commission rate in exchange for a sole selling rights contract. This might get you a better deal.
And if you’re going to put all your faith in one organisation, do lots of research on all your options.
Check customer reviews and ask friends and family for recommendations.