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ARTICLE · 13 DECEMBER 2011

Comply With Statutory Obligations Or Risk Losing Your Commission

Boyes Turner
Boyes Turner
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Boyes Turner

Boyes Turner

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In the case of The Great Estates Group Limited ("GEG") v Michael John Digby [2011] GEG entered a sole agency agreement with Mr Digby for the sale of his property.

United KingdomReal Estate and Construction
Ally Tow
Ally Tow

In the case of The Great Estates Group Limited ("GEG") v Michael John Digby [2011] GEG entered a sole agency agreement with Mr Digby for the sale of his property. The property was sold within the period of the sole agency agreement but through another agency. GEG issued proceedings to recover damages for its lost commission (amounting to nearly £60,000) but the court found both at first instance and on appeal that GEG was not in fact entitled to its commission.

The Estate Agents (Provision of Information) Regulations 1991 ("the Regulations") set out the information which estate agents are obliged to provide to their clients to satisfy the requirements of the Estate Agents Act 1979 ("the Act"). In relation to explanations regarding liability to repay remuneration, if the term "sole agency" is used by the agent in the course of carrying out estate agency work then he is obliged to explain the intention and effect of that term to his client in the form and content of

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