Your sale has fallen through. The last thing you want is a bill from your estate agent for a sale that never happened. The good news is that, for most sellers, there isn't one. But it depends on your contract.
Most agents are "no sale, no fee"
The majority of estate agency agreements make the commission payable only when the sale completes, or sometimes when contracts are exchanged. If your buyer pulled out before then, there's usually nothing to pay.
Get your agency agreement out and look for the section on when the fee becomes due. It should be clear.
The clause to watch: "ready, willing and able purchaser"
Some contracts say the fee is due if the agent introduces a "ready, willing and able" purchaser. This has a legal definition in the Estate Agents (Provision of Information) Regulations 1991: a buyer who is prepared and able to exchange unconditional contracts.
What that means in practice:
- If your buyer pulled out, they were no longer ready, willing and able, so the clause normally isn't triggered.
- **If you pulled out** while the buyer was ready to exchange, the agent may be entitled to their fee, even though nothing sold.
- The agent should have explained this clause before you signed. The Property Ombudsman has said agents must make clear exactly when such a fee becomes payable.
If an agent is claiming a fee under this clause after your buyer withdrew, ask them to show how the buyer met the definition.
Other fees that can catch you out
Even with a no-sale, no-fee agreement, check for:
- Upfront or marketing fees: photos, floorplans, listing fees, often paid at the start and non-refundable
- Withdrawal fees: a charge if you take the property off the market within a set period
- Minimum contract periods and notice: you may be tied in for weeks or months
- Sole selling rights: with these, you could owe a fee even if you sell to a buyer you found yourself during the contract period
What if you switch agents?
If your sale collapses and you want a different agent, read the termination terms first. Depending on the wording, your old agent could claim a fee if a buyer they introduced later buys, or you could end up paying two fees. Our guide on changing estate agent explains how to avoid that.
What about your conveyancer?
Legal fees are separate. If the sale falls through, you'll usually pay for the work done so far, unless your conveyancer offers no-completion, no-fee terms. Check your client care letter.
If you think you're being overcharged
- Ask the agent to explain, in writing, which clause they're relying on
- Use their formal complaints process
- If it isn't resolved within eight weeks, or you're unhappy with the final response, take it to their redress scheme (The Property Ombudsman or the Property Redress Scheme)
How Ready Set Sold works
We're completely free for sellers. You'll never pay us a commission, a marketing fee or a withdrawal fee. Our sourcing fee is paid by the buyer, and only when the sale completes. Before you sign anything with us, we check your current agency contract so you don't end up paying two fees.
Frequently asked questions
Do estate agents get paid if the sale falls through?
Not usually. Most are paid on completion. Some contracts have clauses that can trigger a fee, so check yours.
What does "ready, willing and able" mean in an estate agent contract?
It means a buyer who is prepared and able to exchange unconditional contracts. If your buyer pulled out, that test normally isn't met.
Can an estate agent charge me if I pull out of the sale?
They might, if your contract has a "ready, willing and able" clause and the buyer was ready to exchange. Check the wording.
Who do I complain to about estate agent fees?
First the agent, then their redress scheme. Every estate agent dealing with residential sales must belong to one.
This guide is general information, not legal advice.
Sources: The Property Ombudsman: ready, willing and able case study; HomeOwners Alliance: unfair estate agent contracts.