Whozoo tips #30 - When selling my commercial property, can I use more than one agent?

Published: 01/02/2024

Yes, it is possible to use more than one commercial estate agent when selling your commercial property. This is known as a multiple agency or joint agency arrangement. However, it's important to carefully consider the implications and terms associated with such arrangements.

Here are some key points to keep in mind:

Sole Agency vs. Multiple Agency:
•In a sole agency agreement, you appoint only one estate agent to handle the sale of your property. With multiple agency agreements, you can engage multiple agents simultaneously to market and sell your property. The terms and conditions for these arrangements are typically outlined in the agency agreements.

Exclusive vs. Non-Exclusive Agreements:
•Within a multiple agency arrangement, you may have exclusive or non-exclusive agreements with the agents. An exclusive arrangement means that only the appointed agents have the right to market and sell the property during a specified period. In a non-exclusive arrangement, you retain the right to engage other agents or sell the property independently.

Commission Structure:
•Be aware of the commission structure for each agent. If multiple agents are involved, each may have a claim to a commission upon the successful sale of the property. Ensure that the commission rates are clearly defined and agreed upon in the respective agency agreements.

Communication and Coordination:
•Effective communication and coordination are crucial when working with multiple agents. Clearly outline expectations regarding updates, viewings, and any other relevant information. This helps prevent misunderstandings and ensures a cohesive approach to marketing the property.

Avoiding Double Commission:
•To avoid potential disputes and double commission payments, it's important to specify how the commission will be distributed if the property is sold through one of the agents. This is typically addressed in the agency agreements.

Termination of Agreements:
•Review the terms related to the termination of agency agreements. If you decide to end the arrangement with one or more agents, ensure that you follow the termination procedures outlined in the respective agreements.

Legal Advice:
•Before entering into multiple agency agreements, consider seeking legal advice to ensure that the terms are clear and that you understand your obligations and potential liabilities.

A solicitor can help you navigate the complexities of these arrangements.
Keep in mind that while multiple agency arrangements provide a broader marketing reach, they can also lead to complexities in terms of coordination, communication, and commission payments. It's crucial to carefully review and understand the terms of each agency agreement to make an informed decision that aligns with your goals and preferences.