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"No Sale, No Fee." It sounds simple.

But the property world is rarely simple.

The vendor who instructs two agents and refuses to pay either. The landlord who renews the tenancy privately to cut you out. The buyer who pulls out on exchange day.

Estate and Letting Agency is a high-volume, high-conflict business. You are governed by strict Consumer Protection Regulations (CPRs) and Anti-Money Laundering (AML) laws. A single typo in your agency agreement can lose you a £10,000 commission.

Here are the legal keys to securing your fee.

1. The "Dual Fee" Trap (Effective Cause)

The Scenario: You market a house. You show Mr Smith around. He makes a low offer. The vendor rejects it. The vendor gets annoyed and instructs a second agent (Agent B). Agent B calls Mr Smith, negotiates a higher price, and closes the deal.

You send your invoice. Agent B sends their invoice.

The vendor refuses to pay you. "Agent B sold it."

The Legal Reality:

This is the Foxtons v Pelkey Bicknell precedent. To claim commission, you generally must be the "Effective Cause" of the sale, not just the "introducer." If Agent B did the hard work of closing, they likely win.

The Fix:

• Sole Agency: Lock the client into a Sole Agency period (e.g., 12 weeks).

• The "Ready, Willing and Able" Clause: Be careful. Charging commission just because you found a buyer (even if the seller pulls out) is often deemed "Unfair" under consumer law unless very specifically worded and flagged.

Referral Fees: If you pass the buyer to another agent, ensure a sub-agency fee agreement is in writing between agents*.

2. The "Backdoor Renewal" (Lettings)

The Scenario: You find a tenant for a landlord. You charge 10% for the first year. In year 2, the landlord calls you: "We're managing it ourselves now, thanks."

They sign a new Direct Tenancy Agreement with the tenant you found. You lose your renewal fees.

The Legal Reality:

Following the OFT v Foxtons High Court ruling, renewal commissions can be deemed "Unfair Contract Terms" if they are not transparent. You cannot hide them in the small print. You must actively bring them to the landlord's attention ("Red Hand Rule").

The Fix:

Transparency: Your Terms must state clearly on the front page: "Renewal Fees of [X]% apply if the Tenant remains in the property."*

Liability: Explain why* (you sourced the asset—the tenant). If the clause is hidden, you will not get paid.

3. Misrepresentation (The "Damp Patch" Cover-Up)

The Scenario: A seller tells you: "Oh, that stain on the ceiling is old history, it's fixed." You tell the buyer: "It's fixed."

The buyer moves in. It rains. The roof leaks. The buyer sues YOU for Misrepresentation.

The Legal Reality:

Under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs), you cannot just repeat what the seller says. You have a duty not to make misleading statements.

You can be prosecuted criminally and sued civilly.

The Fix:

Disclaimer: "Agent has not tested services/appliances."* (Standard, but limited protection).

• The "Material Information" Check: You must proactively ask the seller for proof. If they can't prove it's fixed, do not say it is.

4. AML Checks (The Prison Risk)

The Scenario: A cash buyer wants a quick sale. You verify their Passport (ID). You forget to verify their Source of Funds. You proceed.

The Legal Reality:

Estate Agents are on the frontline of Anti-Money Laundering supervision (HMRC). Failing to carry out "Customer Due Diligence" (CDD) is a criminal offence. You can be fined thousands for a paperwork error, even if no money laundering actually happened.

The Fix:

Your Terms of Business should state:

"We reserve the right to withdraw from the sale if satisfactory AML evidence is not provided within [X] days. We are not liable for delays caused by AML compliance."

Why Contract Review is Your Valuation Tool

You value houses every day. Value your own business.

AI contract review ensures your Agency Agreement complies with the Estate Agents Act 1979. It checks your "Sole Agency" definitions are watertight. It ensures your Renewal Fee clauses survive the "Fairness Test" in court. It helps you get paid for the deals you close.