Estate Agency and Property Marketing
This domain tests agency agreements, commission, the agent's duties and the marketing standards that protect buyers, tenants and the public.
Agency types and terms
Open agency (several agents compete), sole agency (one agent, owner may still sell privately), joint sole (two agents share one fee), and multiple agency. Put the agreement in writing: term, commission rate, who pays, termination and what happens to a buyer introduced before termination.
Duties of the agent
Follow lawful instructions, obtain the best price reasonably achievable, pass every offer promptly, avoid misrepresentation, verify and describe title accurately, keep client money in a client account, carry out customer due diligence, and disclose any commission from the other side.
Commission
NIESV scales are a guide and are commonly 5% on sale and 10% on letting of annual rent, subject to written agreement, with VAT added where applicable; legal, consent and registration costs are the client's.
Worked example
A property sells at N45m on a sole agency at 5%. Commission is 0.05 x 45m = N2.25m. Add VAT at 7.5% = N168,750, giving an invoice of N2,418,750. If another agent introduced the buyer, check whether a joint sole or multiple agency was agreed before sharing; sharing with an agent not party to the agreement needs the client's consent.
Traps
Holding a buyer's deposit in the office account; acting for both sides without disclosure; advertising 'C of O' before verifying it; computing commission on a figure other than the agreed basis; marketing a property without the owner's written authority.