Estate Agents

An estate agent is a person or business that arranges the selling, renting or management of properties, and other buildings, in the United Kingdom and Ireland. An agent that specialises in renting is often called a letting or management agent. Estate agents are mainly engaged in the marketing of property available for sale and a solicitor or licensed conveyancer is used to prepare the legal documents. In Scotland, however, many solicitors also act as estate agents, a practice that is rare in England and Wales.

 

 

The full legal term and definition of an estate agent within the UK can be found on the Office of Fair Trading (OFT) website. Enforcement of these regulations is also the responsibility of the OFT.

 

 

In the United Kingdom, residential estate agents are regulated by the Estate Agents Act 1979 and the Property Misdescriptions Act 1991 which is due to go in October 2013, as well as, the more recently enacted Consumers, Estate Agents and Redress Act 2007.

 

Fees - Estate agents who handle lettings of commercial property normally charge a fee of 7 to 10% of the first year's rent, plus the whole of the first month's rent. If two agents are charging 10%, they will split the fee between them. Estate agents selling commercial property (known as investment agents) typically charge 1% of the sale price.

 

 

The fees charged by residential letting agents vary, depending on whether the agent manages the property or simply procures new tenants. Charges to prospective tenants can vary from zero to £300 in non-refundable fees usually described as "Application", "Administration" or "Processing" fees (or all three). There are no guidelines for letting agents on charges, except that they are forbidden by law to charge a fee for a list of properties. Otherwise, they are free to charge as they please.

 

 

Estate agents selling residential property generally charge between 1% (sole agency) and 3% (multiple agency) of the sale price plus VAT (Value Added Tax). Additional marketing charges are also applied for advertising, in media such as newspapers and websites.

 

 

These are just basic information provided on 9jadiaspora. Be sure to make thorough enquiries when dealing with Estate Agents, enough that you are satisfied with.