Property websites are estate agents

LANDLORDS WHO try to cut costs when they sell properties by using an internet service are warned to tread carefully, particularly if they have also instructed an estate agent on a sole agency basis.

This follows a ruling by the Office of Fair Trading which says that many property internet shops are in fact estate agents – even if they say that they are not.

An internet property shop is an estate agent if they provide For Sale boards and other services, on top of advertising properties.

All estate agents have to comply with legislation, including the Property Misdescriptions Act and the Estate Agents Act.

Sole agency agreements with estate agents mean that sellers have to pay their commission, even if they have had nothing to do with the sale, if they go to another agent. The OFT’s ruling means that the sole agency agreement would have been breached.

David Philpott, the deputy director of enforcement at the OFT, said: “We have sought to clarify the law. Many private sale websites were claiming that they were not acting as estate agents when they were. Sellers with sole agency agreements were left unsure as to whether they would be forced to pay two set of fees.

“People can still choose to go to internet property retailers but they need to know the risks.”