The latest guidance specifically addresses the issue of transparency of fees, including referral fees, within the Estate Agency sector.
An Estate Agent should disclose in plain terms
Dafydd Hardy Estate Agents Ltd (Dafydd Hardy) refer business to internal departments (however no referral fee is paid) and external companies, and to this end a full disclosure is set out below.
Dafydd Hardy refer clients to the services of Mortgage Advice Bureau and receive, on average, a referral fee of £250.00 on legal completion.
Dafydd Hardy are part of the Relocation Agent Network which have associated offices throughout the UK. As members Dafydd Hardyreceive a referral fee, amounting to 20% of the recommended Agents’ selling fee, should Dafydd Hardy refer a client who subsequently sells through that agent. The referral fee is paid from the commission agreed between the Agent and the introduced seller. If Dafydd Hardy introduce a buyer/applicant to a member agent Dafydd Hardy receive 5% of the sales fee. This is a national agreement between all members.
Dafydd Hardy refer clients to the services of Huddle UK and receive, on average, a referral fee of £50.00 on the take up of a household to the utility providers services.
*All clients have the option to deal with any of the above companies or seek alternative providers of these services.
*Clients are defined as people who have instructed Dafydd Hardy to sell their property or people who are buying a property through a Dafydd Hardy branch.