Code of Conduct - continued

2 Market Appraisal

  1. When you give advice to someone hoping to sell their property, any figure you advise either as a recommended asking price or as a possible selling price should be given in good faith reflecting current market conditions. You must never deliberately misrepresent the value of a property in order to gain an instruction.
  2. Any figure given must be supportable, preferably with comparables of similar properties in a similar location - and you should keep your general marketing strategy under regular review with your client.

3 Terms of Business, Instructions, Commission and Termination

  1. By law you must give your client written confirmation of his (see 12 below) instructions to act in the buying or selling of properties on his behalf. In so doing you must give the client written details of your fees and expenses and of your business terms. You should give the client these details before he is committed or has any liability towards you. If appropriate, you must notify your client in writing if you or an 'associate' (see 9b below) or 'connected person' (see 12d below) wish to offer estate agency, surveying, investment, insurance or other services to people proposing to buy your client's property through you.
  2. Except for any previously agreed expenses and fees, fees will only become due if a purchaser enters into a contract (in Scotland, concludes missives) through you, to buy the property, or as stated otherwise in your terms of business. If you use the phrase 'sole selling rights', 'sole agency' or 'ready, willing and able purchaser' within the terms of engagement, you must explain these phrases in writing, as set out in The Estate Agents (Provision of Information) Regulations 199
  3. You need to use these definitions in full otherwise this would be deemed to be misleading because of the other provisions in the contract. If this is the case, you should amend the definition to give an accurate description of the client's liability to pay. If you use any different term, which has the same meaning, you should still use the relevant definitions to explain your term.
  4. Your client must be informed in writing that, if any other agent introduces a purchaser to them during the period of your sole agency agreement, this will be regarded as an introduction by you and the client will have to pay your fees.
  5. Member firms must provide clear and accurate pre-contractual information regarding the circumstances under which a client can cancel an agreement.
  6. You should try to get written confirmation if your client wishes to terminate your agency. You must promptly give the client written confirmation that you are no longer acting for him, confirm the actual date of termination, and give details of any fees or charges the client owes you. At the time of the termination of the instruction, you will also need to explain in writing any continuing liability the client may have to pay you commission and/or any circumstances in which he may have to pay more than one fee.
  7. However, you will have to give up your rights to any commission if a purchaser first introduced by you goes on to buy the property through another agent, in circumstances where that purchaser was introduced by the other agent more than six months after the date your agency ended.
  8. If you receive instructions from a client, you must give that client written notice that there may be a dual fee liability if: - that client has previously instructed another agent to sell the same property on a sole or joint sole agency or a sole selling rights basis; or - that client instructs another agent during or after the period of your sole agency or sole selling rights.
  9. You should not instruct other agencies to assist you in selling a property without your client's permission. If the client gives permission, you should be aware that as the instructing agent you are liable at law for the actions of the sub-instructed agent.
  10. You must not directly or indirectly harass (see 12e below) any person in order to gain instructions. Also, you should not repeatedly try to gain instructions in a way likely to cause offence.
  11. Member agents must not put any client's property on the market for sale without permission from that client or the client's properly appointed representative.
  12. The use of fair contract provisions, written in plain and intelligible language and using clear and well-presented terms is encouraged. You should avoid using contract provisions that may be deemed unfair, and consequently unenforceable, by virtue of the Unfair Terms in Consumer Contracts Regulations 1999.
  13. If you or a client suggests making changes to an agreement (e.g. from sole agency to multi agency) you should provide the client with a full written explanation of how this will effect them and any liability they have towards you, prior to them agreeing to the change.

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