Regulation 5 Explanation of terms concerning client’s liability to payremuneration to an estate agent

(1)

If any of the terms“sole selling rights”,“sole agency” and“ready, willing and able purchaser” are used by an estate agent in the course of carrying out estateagency work, he shall explain the intention and effect of those terms tohis client in the manner described respectively below, that is tosay—

(a)

“sole selling rights”, by means of a written explanation having the form and content ofthe statement set out in paragraph (a) of the Schedule to theseRegulations;

(b)

“sole agency”, by means of a written explanation having the form and content ofthe statement set out in paragraph (b) of the Schedule to theseRegulations; and

(c)

“ready, willing and able purchaser”, by means of a written explanation having the form and content ofthe statement set out in paragraph (c) of the Schedule to theseRegulations:

Provided that if, by reason of the provisions of the contract inwhich those terms appear, the respective explanations are in any waymisleading, the content of the explanation shall be altered so asaccurately to describe the liability of the client to pay remunerationin accordance with those provisions.

(2)

Any other terms which, though differing from those referred to inparagraph (1) above, have a similar purport or effect shall be explainedby the estate agent to his client by reference to whichever ofparagraphs (a), (b) or (c) of the Schedule to these Regulations isappropriate, subject also to the proviso to paragraph (1) above.

(3)

The explanation of the terms mentioned in paragraphs (1) and (2)above shall be given by the estate agent to his client in a documentsetting out the terms of the contract between them (whether thatdocument be a written or printed agreement, a letter, terms ofengagement or a form, and whether or not such document is signed by anyof the parties), and shall be given at the time specified in Regulation3(1) and (2) above.