Compliance with the Consumer Protection from Unfair Trading Regulations 2008
The latest guidance specifically addresses the issue of transparency of fees, including referral fees, within the Estate Agency sector.
An Estate Agent should disclose in plain terms
- The price for its services, including any ‘’compulsory’’ extras; and
- Where a referral arrangement exists, that it exists and with whom; and
- Where a transaction specific referral fee is to be paid, its amount; and
- Where a referral retainer exists, an estimate of the annual value of that retainer to the Estate Agent or its value per transaction; and
- Where the referral is rewarded other than by payment, an assessment of the annual value of the reward or the value of the reward per
Barbers refer business to internal departments (however no referral fee is paid) and external companies, and to this end a full disclosure is set out below.
Mortgage/ Financial Services
Barbers refer clients to the services of TIME Mortgage Experts Limited, an Appointed Representative of Mortgage Advice Bureau, and receive a referral fee of 20% on legal completion.
Barbers may provide a conveyancing quotation via several conveyancing companies in conjunction with a selected local law firm. Where a client instructs the Lawyer to proceed with the process Barbers will receive a referral fee of up to £202.50 on legal completion. This fee is included in the law firm’s quotation prior to instruction and the fee taken is to cover the sale progression, transaction management, text and web updates, service level management and work carried out by the Panel Law Firms.
The Guild of Property Professionals
Barbers are part of the The Guild of Professional Professionals which has associated offices throughout the UK. As members Barbers receive a referral fee, amounting to 20% of the recommended Agents’ selling fee, should Barbers refer a client who subsequently sells through that agent. The referral fee is paid from the commission agreed between the Agent and the introduced seller. If Barbers introduce a buyer/applicant to a member agent Barbers receive 5% of the sales fee. This is a national agreement between all members.
Surveys, RICS Homebuyer Reports, Red Book Valuations, Inheritance Tax Valuations, Capital Gains Tax Valuations, Help-to-Buy Valuations & Shared Ownership/Shared Equity Valuations
Barbers refer clients to the services of Spencer Hustwick Ltd Chartered Surveyors and typically receive a referral fee from them of 20%.
Information for tenants
If you apply to rent a property from Barbers and choose the option of “Zero Deposit” it is declared that the Agent receives a commission from “Zero Deposit” equal to 14% of the deposit guarantee, which on average is £21. You may also choose to use the “Tenant Shop” service to set up utility accounts and in this instance, the Agent will receive a referral fee from “Tenant Shop” of £5 for each gas, electric or a broadband account you take out.
*All clients have the option to deal with any of the above companies or seek alternative providers of these services.
*Clients are defined as people who have instructed Barbers to sell their property or people who are buying a property through a Barbers office.
*All figures quoted above are exclusive of VAT.
In-house conveyancing with Barbers
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