BrightSale and the OFT

Since writing our letter to the OFT calling for greater clarity in estate agency contracts, we have received widespread coverage on everything from the highly regarded Rat and Mouse blog all the way to BBC News and BBC Radio 5Live.

It's also encouraging to see that a few of our fellow non-traditional estate agents and private sales websites are behind us in this fight. We have received words of support from Tesco, Homesmatter and Less2Sell.

Our letter includes 4 simple recommendations that if introduced, we hope will force everybody in the industry (including us) to explain in greater detail exactly what you sign when you instruct an estate agent.

Specifically, we asked for the following in the interests of promoting competition and transparency (references are made to the 2004 OFT report into estate agency, a full version of which is available here):

1. To acknowledge the role that online estate agents can play in delivering at least three of the main recommendations of the 2004 report: greater clarity on fees (1.13), better audit trials (1.25) and more price competition (1.10);


2. To state more clearly and forcefully that consumers have a right to understand and be made aware of the significant clauses in their contracts before they sign them. This should be done verbally as is now required in many financial services contracts;



3. To recommend a ‘cooling off’ period during which time consumers are free to cancel or alter their contract if they find a better service elsewhere; and



4. To state that you believe that ‘sole selling rights’ contract with ‘prohibition’ clauses against online agents are are anti-competitive.

We believe that if these recommendations were to be enforced, BrightSale together with other non-traditional estate agents can usher in an era of more competition, greater transparency and higher service levels that every consumer deserves.

For those that would like to read our letter in full, you can find a full and unedited version here.