{"id":798,"date":"2026-07-30T03:56:43","date_gmt":"2026-07-29T22:26:43","guid":{"rendered":"https:\/\/advaithhomes.co.uk\/?p=798"},"modified":"2026-07-30T04:05:44","modified_gmt":"2026-07-29T22:35:44","slug":"estate-agents-act-1979-rights-duties","status":"publish","type":"post","link":"https:\/\/advaithhomes.co.uk\/estate-agents-act-1979-rights-duties\/","title":{"rendered":"Estate Agents Act 1979: UK Buyer Rights and Agent Duties"},"content":{"rendered":"\n
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Estate Agents Act 1979: Duties, Referral Fees and Buyer Rights<\/h2>\n

The Estate Agents Act 1979<\/strong> is one of the main laws regulating residential estate agency work in the UK. It covers important areas such as estate agent fees, offers, conflicts of interest, personal interests, client money and enforcement against unsuitable agents.<\/p>\n

Updated:<\/strong> 29 July 2026<\/p>\n<\/header>\n\n

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What Does the Estate Agents Act 1979 Protect?<\/h2>\n

The Act primarily regulates people and businesses carrying out estate agency work for property sales. It protects sellers who appoint an agent, but several duties also protect prospective buyers during the marketing and offer process.<\/p>\n

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  • Agents must explain their fees and payment terms to their client.<\/li>\n
  • Offers must generally be passed to the seller promptly and accurately.<\/li>\n
  • Personal interests in a property must be disclosed.<\/li>\n
  • Client money must be handled in accordance with the relevant rules.<\/li>\n
  • Serious misconduct can lead to a warning or prohibition order.<\/li>\n<\/ul>\n
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    Important distinction:<\/strong> The seller’s estate agent represents the seller. The agent does not become the buyer’s adviser simply because they arrange viewings, discuss an offer or recommend a mortgage broker.<\/p>\n<\/blockquote>\n<\/section>\n\n

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    Where Does the Estate Agents Act Apply?<\/h2>\n

    The Estate Agents Act regulates estate agency work across the UK. However, buying and selling procedures differ between England, Wales, Scotland and Northern Ireland. Scotland, for example, has a different offer and conveyancing process.<\/p>\n

    This article focuses on residential property sales. Letting-agent work is covered by separate legislation and devolved rules, so landlords and tenants should check the requirements applying in their part of the UK.<\/p>\n

    The Estate Agents Act also works alongside newer consumer-protection legislation. Since 6 April 2025, the unfair commercial practices provisions of the Digital Markets, Competition and Consumers Act 2024<\/strong> have prohibited misleading information, important omissions, aggressive practices and failures of professional diligence.<\/p>\n<\/section>\n\n

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    What Are an Estate Agent’s Main Legal Duties?<\/h2>\n\n

    1. Explain the Seller’s Contract and Commission<\/h3>\n

    Section 18 of the Estate Agents Act requires the agent to give the client written information about when fees become payable, the amount of the agent’s remuneration or how it will be calculated, and any other payments that may become due.<\/p>\n

    Sellers should check whether the agreement includes sole agency, sole selling rights, withdrawal charges, marketing costs, sales progression fees or circumstances in which two agents could claim commission.<\/p>\n\n

    2. Pass Offers to the Seller<\/h3>\n

    Estate agents must generally pass offers to the seller promptly and in writing, including offers below the asking price and offers received after another offer has been accepted. This normally continues until exchange of contracts.<\/p>\n

    An exception may apply where the seller has given written instructions that specified types or amounts of offers do not need to be passed on. An agent should not hide, delay or misrepresent an offer because a buyer refuses to use an in-house service.<\/p>\n\n

    3. Describe the Buyer’s Position Accurately<\/h3>\n

    The agent may ask whether the buyer has a mortgage Agreement in Principle, a deposit, a property to sell or evidence of funds. These checks help the seller compare the strength of different offers.<\/p>\n

    However, the agent should not exaggerate or misrepresent a buyer’s financial position, chain status or offer. Buyers should confirm important details in writing and retain a copy.<\/p>\n\n

    4. Disclose a Personal Interest<\/h3>\n

    Section 21 requires an estate agent to disclose the nature and extent of a personal interest before entering negotiations. This can apply where the agent, employer, employee, business associate or another connected person has a beneficial interest in the property or sale proceeds.<\/p>\n

    For example, buyers should be told if the property is owned by the agent, an employee or a connected business where the legal definition of a personal interest is met.<\/p>\n<\/section>\n\n

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    Are Estate Agent Referral Fees Legal?<\/h2>\n

    A referral fee<\/strong> is a payment one business receives for introducing a customer to another business. Estate agents may recommend mortgage brokers, conveyancers, surveyors, insurance providers and other property professionals.<\/p>\n

    Referral arrangements are not automatically unlawful. However, GOV.UK guidance says consumers should receive clear, upfront information about the arrangement, including how much the referral fee amounts to. The consumer remains free to choose another provider.<\/p>\n\n

    Estate Agent Commission vs Referral Fees<\/h3>\n