Recommended tariffs dropped

Institute of Estate Agents' (IEA) president Bill Rawson says that, after taking legal advice, and conducting investigations into organisations such as the law societies and medical associations, the organisation's national board will stop publishing recommended tariffs. Although the IEA last published tariffs in 2002, the decision is well timed since the Competition Commission regards tariffs as a form of price fixing and anti-competitive.

Rawson says the decision not to re-publish the tariffs should not be blown out of proportion, and nor should it be seen as a green light for estate agents to charge exorbitant commissions. Tariffs were never anything more than non-compulsory recommendations. Estate agent commissions have always been negotiable. Sellers and estate agents should always agree on commissions before granting the mandate, and if the seller thinks the agent is asking too much he is free to negotiate the commission down or go somewhere else.

Sapoa