Estate agency involves the Sale and Purchase of various types of properties. We as Registered Valuers and Chartered Surveyors are equipped with good knowledge of the property market with fundamental skills in valuation and negotiations.
The sale of the property is preferably on an exclusive agency basis where concerted effort is made in marketing the property.
Types of Agency includes :-
Exclusive agency refers to the instructions from a principal (the person who engages an estate agent) to a single estate agent to act on his behalf. The principal may make introductions but will leave the closing of the deal to the estate agent. The principal must pay the appointed estate agent the agreed fee even if the estate agent was not the effective cause of the transaction.
Similar to exclusive agency, a single estate agency is appointed. The principal may wish to reserve the right to close the deal himself and is not obligated to pay the agent his fee in addition to making introduction or, a discount on fee could be arranged where the principal plays an active role.
SOLE JOINT AGENCY
This is a variation to the sole agency. The estate agent works together with the principal as a team and the fee is divided on a pre-agreed formula. The principal has the flexibility to compensate additional estate agents and at the same time maintaining the advantage of having one Estate Agent to consult to.
This is where more than one Estate Agent is appointed and only the Estate Agent who closes the transaction gets paid. Here the number of agents appointed is limited and each is aware of the appointments of the other.
AD-HOC BASIS / OPEN LISTINGS
In this scenario, the principal can engage an unlimited number of Estate Agent on an Ad-Hoc basis and the fees are paid only on successful conclusion of the agency transactions.
Apart from the above elaborated agencies, there is also the practice of co-agency or co-broking between Estate Agents. This is where the appointed Estate Agent enlists the services of another Estate Agent and shares the fee on an agreed basis. The principal is usually not a party to this arrangement.