Multi-agency fees and fairness

This case study concerns a dispute referred to The Property Ombudsman (TPO) from a seller complainant concerned about the fee that the agent (Agent 1) charged upon the sale of the property. The complainant explained that Agent 1 charged a multi-agency fee, as the property had been marketed by another agent (Agent 2). The complainant stated that Agent 2 was not instructed market the property for sale, and had confirmed that any marketing carried out by them was in error. The complainant also alleged that Agent 1 gave no prior indication of their intention to charge a multi-agency fee and did not advise that Agent 2 also appeared to be marketing the property. Agent 1’s response was that the property was marketed by Agent 2 throughout the period in which they were instructed, and that, as per the terms of their Agency Agreement, a multi-agency rate commission fee was payable. The facts I began by explaining that no complaint had been brought against Agent 2, and therefore I was unable to consider their actions. For clarity, I understood that Agent 2 had been informally instructed in the sale of the property by the complainant’s parents in 2012. The parents at…

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