Agency types
There are different ways to instruct an estate agent, the most popular ones are:
Sole agency – this is where one estate agent acts to sell your property, you cannot instruct anymore than the one estate agent under this agency type.
Multiple agency – this is where you can have 2 or more different estate agencies to market your property and the estate agent to agree the sale will claim all of the commission on a “winner takes all” basis
Joint agency – this is where you have an agreement with multiple companies but no more than the agreed firms, normally 2 companies. The commission is usually shared between the companies.
Energy performance certificate (EPC)
An EPC assesses the energy rating of a property from A-G. An EPC must be received for a property within 28 days of marketing. Your estate agent can usually arrange this for you.
Conveyancing
This is the word used to describe the work that solicitors undertake when dealing with property transactions, it contains the following:
Seller's solicitor
Obtains the title deeds, prepares draft contract, sends all relevant paperwork, including the draft contract, fixtures and fittings forms to your buyers solicitors, this confirms what’s being included within the sale.
Buyer's solicitor
Checks over all relevant documents, including draft contract and fixtures and fitting forms, then raises any enquiries relating to the contract and then applies for any necessary searches including the local authority search. Obtains the buyers funds, e.g. deposit and mortgage monies, then transfers the deposit on exchange and the balance on completion to your solicitor Registers the buyer as the new owner with land registry
Estate agent commission
Normally an estate agents commission fee is calculated as a percentage (%) of the sale price achieved plus vat at the current rate. If you instruct an estate agent on a Sole agency basis it will normally be a lower fee than on a multiple or joint agency. Beware of fixed fees because many times they can be set too high.
Legal fees
Legal fees can vary, it is always good to do some research but also consider recommended legal firms whether from your estate agent of from people you know as this is a good way to ensure that they are a good company to use, but beware of cheaper legal firms, do not underestimate how important an efficient solicitor can be. Merrys can recommend a number of excellent local companies.
Stamp duty
As a seller you do not have to pay stamp duty on your sale but as a buyer you will have to pay it, it’s a percentage of the asking price, to confirm the exact amount and for further info please visit www.direct.gov.uk and search stamp duty