Commission Agreements for Property Search Agencies
In response to requests from customers who provide property finding services to their clients, we have added new Finder’s Fee Agreements (or Property Search Commission Agreements) to our Estate Agency folder. These new templates can be used by Property Finders when they are instructed to assist clients in their search for a suitable property to buy or rent.
Property Search Agencies
Prospective buyers (and tenants) are increasingly turning to Property Search Agencies to help them find a suitable property. Using a Search Agency can be desirable (and in some cases essential) for the following reasons, which justify the buyer incurring an additional fee:
• Logistical reasons – the buyer does not have the time to engage with a fast-moving property market, is geographically remote from the search area or requires the comprehensive transaction management service provided by the property finder.
• Access to/knowledge of the market – Property Search Agencies sometimes have access to properties that are not offered on the open market. They also have in-depth knowledge of the local area, amenities and market conditions.
• Confidentiality – Property Search Agencies can make enquiries without disclosing the identity of the buyer.
Finder’s Fee Agreements
Our Finder’s Fee Agreements formalise the relationship between the Property Search Agency and the Client. Different versions cater for the provision of property finding services to private clients, who are looking for a property to live in, and to business clients, who are seeking a property for business use, development or investment.
All of the documents contain detailed provisions as to commission – with fixed fee and percentage-based commission arrangements offered as alternatives – timescale and the obligations of the Agency and the Client respectively.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.