Estate Agents Act 1979

Buying or selling property is one of the biggest financial steps anyone takes. That’s why it’s important to understand how estate agents are regulated. The Estate Agents Act 1979 is a key law that sets out how agents must operate to protect buyers, sellers, and the integrity of the housing market.

This guide covers everything you need to know about the Act: who it applies to, the rules agents must follow, and what happens when they don’t.

What Is the Estate Agents Act 1979?

This law governs how estate agents work in the UK. It ensures they act fairly, honestly, and in their clients’ best interests. It applies to anyone who introduces buyers and sellers and helps with property sales as part of a business. It doesn’t matter what job title they use – if they’re involved in arranging sales, they fall under the law.

Who Must Follow the Act?

• Estate agents working in residential, commercial, or agricultural sales
• Property businesses, including online platforms that get involved in negotiations
• Individuals acting as intermediaries between buyers and sellers

Who Is Exempt?

• Solicitors carrying out legal work
• Surveyors doing valuations
• Online portals that only advertise and don’t advise or negotiate

Key Rules Agents Must Follow

1. Clear Disclosure of Fees and Charges
Agents must clearly explain all their fees in writing before any agreement is signed. This includes:

• Commission rates, including VAT
• Any extra charges such as photography or marketing costs
• When the fees apply, even if the property doesn’t sell

2. Declaring Personal Interest
If an agent or someone close to them has a personal stake in the property such as planning to buy it they must declare it in writing before negotiations begin. In these cases, agents are not allowed to accept deposits.

3. Handling Offers Properly
Agents must:

• Pass all offers to the seller in writing as soon as possible
• Not mislead anyone about existing offers
• Treat all buyers equally, even if they choose not to use the agent’s mortgage or conveyancing services

4. Keeping Client Money Safe
Any money held for clients, including deposits must be:

• Kept in a separate bank account
• Held with an authorised institution
• Interest paid if the deposit is over £500 and earns £10 or more
• Proper records must be kept for at least six years

5. Banned Practices

Agents are not allowed to:

• Mislead clients about property details
• Pressure sellers or buyers into quick decisions
• Falsely claim a property is exclusive to them when it isn’t

What Happens When Agents Break the Rules?

The National Trading Standards Estate Agency Team (NTSELAT) is responsible for enforcement. If an agent breaches the law, consequences can include:

• Financial penalties (some fines have been substantial)
• Being banned from working as an estate agent
• Criminal prosecution for serious or repeated offences

How It Affects Buyers and Sellers

For Sellers

• Agents must be upfront about all costs
• Every offer must be passed on unless you’ve asked otherwise in writing
• You must be told if there’s any conflict of interest

For Buyers

• You must get honest details about any property
• You must be treated fairly, no matter what services you choose to use or not use

FAQs About the Estate Agents Act 1979

1. Do online estate agents have to follow the Act?
Yes, if they negotiate or advise on sales. Platforms that only list properties without involvement in sales are not covered.

2. Can an agent choose not to pass on my offer?
Only if the seller has told them not to in writing. Otherwise, all offers must be passed on.

3. What if an agent doesn’t explain their fees clearly?
You can report them to Trading Standards. They may face fines or even a ban.

4. Do estate agents need formal qualifications by law?
No. But they must follow the rules in the Act. Breaking the rules can result in being banned.

5. Can a bankrupt person run an estate agency?
No. Undischarged bankrupts cannot run an estate agency but can be employed by one.

Final Notes

The Estate Agents Act 1979 helps maintain fairness and trust in the UK property market. Whether you’re buying, selling or working as an agent, understanding your rights and responsibilities makes everything smoother and more transparent.

If something seems off, it’s always worth reporting. And if you’re in the business, sticking to the rules is not just about staying legal – it’s about earning your clients’ trust.