Estate Agents Act 2010 · 2020 Revised Edition · Part 4 · Duties and Liability
44. Estate agency agreement required as regards certain proposals and undertakings
Feedback & supportSubject to subsection (4), where an estate agent proposes or undertakes (whether or not for a commission or other fee) to perform estate agency work for a client, whether as regards a particular property or not, a right or other cause of action whereby agreed sums, damages or any other relief or remedy may be recovered or obtained in legal proceedings as regards the proposal or undertaking shall lie at the suit of the estate agent if, and only if —
estate agent
“estate agent”, subject to subsection (3), means a person who does estate agency work, whether or not the person carries on that or any other business;
an estate agency agreement embodying the terms of the proposal or undertaking, being an agreement between the estate agent and the client which is in the form prescribed and which contains such particulars (if any) in respect of the proposal or undertaking as are prescribed for the purposes of this section has been entered into and, in the case of a written document, properly executed; and
the estate agent was a licensed estate agent at the time when the estate agency agreement was so entered into and executed.
Subject to subsection (4), where an estate agent makes a proposal or gives an undertaking to perform estate agency work for a client as described in subsection (1), the agent is entitled to recover from, or to require the payment by any other person of, any amount in respect of any outgoing paid or payable by the agent as regards any acquisition or disposition of any property to which the proposal or undertaking relates if, and only if —
estate agency work
“estate agency work”, subject to subsection (3), means any work done in the course of business for a client or any work done for or in expectation of any fee (whether or not in the course of business) for a client, being work done —(a)in relation to the introduction to the client of a third person who wishes to acquire or dispose of a property, or to the negotiation for the acquisition or disposition of a property by the client; or(b)after the introduction to the client of a third person who wishes to acquire or dispose of a property or the negotiation for the acquisition or disposition of a property by the client, in relation to the acquisition or disposition (as the case may be) of the property by the client;
an estate agency agreement between the estate agent and the client which is in the prescribed form and contains, in respect of the proposal or undertaking, such particulars (if any) as are prescribed for the purposes of this section has been entered into and, in the case of a written document, properly executed;
the estate agency agreement expressly provides for such recovery or reimbursement; and
the estate agent was a licensed estate agent at the time when the estate agency agreement was so entered into and executed.
A right or other cause of action described in subsection (1) shall not lie at the suit of any person other than the estate agent within the meaning of this section by reason only of anything contained in this section.
Regulations made under section 72 may exclude any class or description of estate agency work from the operation of subsections (1) and (2).