Sellers are being told not to accept a “ready, willing and able purchaser” clause in contracts with agents.

The Home Owners Alliance has produced advice for the public on estate agents’ contracts.

It includes this: “Ready, willing and able purchaser – Do not accept this! It means you have to pay the agent for finding a buyer, even if you decide not to sell.”

It’s the kind of advice that might worry sellers.

But is it correct?

In 2008, Foxtons v Pelkley Bicknell was a landmark case in which a seller was sued by Foxtons for its commission because the firm said it had introduced a buyer, who was successfully reintroduced by a second agent, Hamptons.

The Appeal Court ruled that it was no longer enough to introduce a buyer to a property. The buyer had to be introduced to the sale.

As Foxtons had not introduced the buyer to the sale, they were not entitled to their fee.

In other words, for an agent to be entitled to payment of their commission, they must show that they were the effective cause of the completed transaction.

The Home Owners Alliance advice also tells sellers to “check the contract for extra fees such as marketing (which should be included in the commission fee!)”.

Really?

The Home Owners Alliance is claiming: “We regularly help our members to successfully extract themselves from dodgy estate agent contracts.”