Estate Agents Act 1979: Information to Clients about Liabilities and Pre-contract Deposits | Study notes Law

Status: This version of this cross heading contains provisions that are prospective.

Changes to legislation: Estate Agents Act 1979, Cross Heading: Regulation of other aspects of estate

agency work is up to date with all changes known to be in force on or before 14 September 2021. There

are changes that may be brought into force at a future date. Changes that have been made appear in the

content and are referenced with annotations. (See end of Document for details) View outstanding changes

Estate Agents Act 1979

1979 CHAPTER 38

Regulation of other aspects of estate agency work

18 Information to clients of prospective liabilities.

(1) Subject to subsection (2) below, before any person (in this section referred to as “the

client”) enters into a contract with another (in this section referred to as “the agent”)

under which the agent will engage in estate agency work on behalf of the client, the

agent shall give the client—

(a) the information specified in subsection (2) below; and

(b) any additional information which may be prescribed under subsection (4)

below.

(2) The following is the information to be given under subsection (1)(a) above—

(a) particulars of the circumstances in which the client will become liable to pay

remuneration to the agent for carrying out estate agency work;

(b) particulars of the amount of the agent’s remuneration for carrying out

estate agency work or, if that amount is not ascertainable at the time the

information is given, particulars of the manner in which the remuneration will

be calculated;

remuneration for carrying out estate agency work or a contract or pre-contract

deposit but which, under the contract referred to in subsection (1) above, will

or may in certain circumstances be payable by the client to the agent or any

other person and particulars of the circumstances in which any such payments

will become payable; and

(d) particulars of the amount of any payment falling within paragraph (c) above

or, if that amount is not ascertainable at the time the information is given, an

estimate of that amount together with particulars of the manner in which it

will be calculated.

(3) If, at any time after the client and the agent have entered into such a contract as is

referred to in subsection (1) above, the parties are agreed that the terms of the contract

should be varied so far as they relate to the carrying out of estate agency work or

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Status: This version of this cross heading contains provisions that are prospective. Changes to legislation: Estate Agents Act 1979, Cross Heading: Regulation of other aspects of estate agency work is up to date with all changes known to be in force on or before 14 September 2021. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes

Estate Agents Act 1979

1979 CHAPTER 38

Regulation of other aspects of estate agency work 18 Information to clients of prospective liabilities. (1) Subject to subsection (2) below, before any person (in this section referred to as “the client”) enters into a contract with another (in this section referred to as “the agent”) under which the agent will engage in estate agency work on behalf of the client, the agent shall give the client— (a) the information specified in subsection (2) below; and (b) any additional information which may be prescribed under subsection (4) below. (2) The following is the information to be given under subsection (1)(a) above— (a) particulars of the circumstances in which the client will become liable to pay remuneration to the agent for carrying out estate agency work; (b) particulars of the amount of the agent’s remuneration for carrying out estate agency work or, if that amount is not ascertainable at the time the information is given, particulars of the manner in which the remuneration will be calculated; (c) particulars of any payments which do not form part of the agent’s remuneration for carrying out estate agency work or a contract or pre-contract deposit but which, under the contract referred to in subsection (1) above, will or may in certain circumstances be payable by the client to the agent or any other person and particulars of the circumstances in which any such payments will become payable; and (d) particulars of the amount of any payment falling within paragraph (c) above or, if that amount is not ascertainable at the time the information is given, an estimate of that amount together with particulars of the manner in which it will be calculated. (3) If, at any time after the client and the agent have entered into such a contract as is referred to in subsection (1) above, the parties are agreed that the terms of the contract should be varied so far as they relate to the carrying out of estate agency work or

Document Generated: 2021-09- Status: This version of this cross heading contains provisions that are prospective. Changes to legislation: Estate Agents Act 1979, Cross Heading: Regulation of other aspects of estate agency work is up to date with all changes known to be in force on or before 14 September 2021. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. (See end of Document for details) View outstanding changes any payment falling within subsection (2)(c) above, the agent shall give the client details of any changes which, at the time the statement is given, fall to be made in the information which was given to the client under subsection (1) above before the contract was entered into. (4) The Secretary of State may by regulations— (a) prescribe for the purposes of subsection (1)(b) above additional information relating to any estate agency work to be performed under the contract; and (b) make provision with respect to the time and the manner in which the obligation of the agent under subsection (1) or subsection (3) above is to be performed; and the power to make regulations under this subsection shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (5) If any person— (a) fails to comply with the obligation under subsection (1) above with respect to a contract or with any provision of regulations under subsection (4) above relating to that obligation, or (b) fails to comply with the obligation under subsection (3) above with respect to any variation of a contract or with any provision of regulations under subsection (4) above relating to that obligation, the contract or, as the case may be, the variation of it shall not be enforceable by him except pursuant to an order of the court under subsection (6) below. (6) If, in a case where subsection (5) above applies in relation to a contract or a variation of a contract, the agent concerned makes an application to the court for the enforcement of the contract or, as the case may be, of a contract as varied by the variation,— (a) the court shall dismiss the application if, but only if, it considers it just to do so having regard to prejudice caused to the client by the agent’s failure to comply with his obligation and the degree of culpability for the failure; and (b) where the court does not dismiss the application, it may nevertheless order that any sum payable by the client under the contract or, as the case may be, under the contract as varied shall be reduced or discharged so as to compensate the client for prejudice suffered as a result of the agent’s failure to comply with his obligation. (7) In this section— (a) references to the enforcement of a contract or variation include the withholding of money in pursuance of a lien for money alleged to be due under the contract or as a result of the variation; and (b) “the court” means any court having jurisdiction to hear and determine matters arising out of the contract. Subordinate Legislation Made P1 S. 18(4): power exercised by S.I. 1991/

Document Generated: 2021-09- Status: This version of this cross heading contains provisions that are prospective. Changes to legislation: Estate Agents Act 1979, Cross Heading: Regulation of other aspects of estate agency work is up to date with all changes known to be in force on or before 14 September 2021. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. View outstanding changes Changes and effects yet to be applied to the whole Act associated Parts and Chapters: Whole provisions yet to be inserted into this Act (including any effects on those provisions):

s. 21A inserted by 2007 c. 17 s. 54(1)

Estate Agents Act 1979: Information to Clients about Liabilities and Pre-contract Deposits, Study notes of Law

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Estate Agents Act 1979

1979 CHAPTER 38