header-logo header-logo

Sole searching

10 July 2008 / Michael Wilkinson
Issue: 7329 / Categories: Features , Property
printer mail-detail

A recent Court of Appeal decision on sole agency agreements will come as a blow to estate agents, says Michael Wilkinson

Determining when an estate agent is entitled to commission has long concerned estate agents, their clients, their lawyers and the courts. Before Foxtons v Pelky-Bicknell [2008] EWCA Civ 419, [2008] All ER (D) 328 (Apr), the position appeared to be relatively well settled. For a general agency agreement, ie one which does not contemplate limiting the seller to using only one agent, a term would generally be implied into the contract requiring that the agent “effectively cause” sale: if the agent does not cause sale, they will not be entitled to their commission (see Dashwood v Fleurets Limited [2007] EWHC 1610 (QB), [2007] All ER (D) 67 (Jul)).

For sole agency agreements (SSAs), however, the law did not require the same high degree of causation: commission was payable wherever the agent “introduced” a person who then purchased the property, regardless of how that introduction was made (see Murdoch, the law of Estate Agency, 4th Edition,

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Gilson Gray—Linda Pope

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Jackson Lees Group—five promotions

Private client division announces five new partners

Taylor Wessing—Max Millington

Taylor Wessing—Max Millington

Banking and finance team welcomes partner in London

NEWS
Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget
The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings
Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ
Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?
Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year
back-to-top-scroll