Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Dual Fee Disputes in UK Property: A Process Problem, Not a People Problem

Dual fee disputes are a persistent and complex issue in the UK residential property sector, according to the UK’s Chief Property Ombudsman. These disputes often involve unexpected claims for thousands of pounds after a transaction has completed, and are primarily caused by process failures rather than individual conduct.

A common scenario involves more than one agent claiming a commission fee for the same sale. This typically arises when a second agent is instructed during a sole agency agreement, or when multiple agents are involved on a multi-agency basis. The underlying causes are consistent: failures in communication, unclear contractual terms, and gaps in record keeping.

The issue is not limited to any particular segment of the market, affecting both independent and corporate agents. The Ombudsman’s casework shows that the risk of dual fee disputes exists wherever processes are not robust.

Significant Consequences for Agents and Consumers

The consequences of dual fee disputes are substantial. Over the past year, the average compensation awarded in such cases was £5,571, compared to £616 for other types of complaints. For agents, this can result in lost revenue, reputational damage, and significant time spent resolving disputes. For consumers, the impact is often personal, with some receiving unexpected demands for payment months after completing a sale, sometimes via debt collection agencies.

The Ombudsman notes that it is generally not appropriate for a consumer to pay more than one commission fee for the same sale. When this occurs, it usually indicates a breakdown in process.

Process Weaknesses at the Core

Many disputes stem from a lack of clarity at key stages of the transaction. Contracts may not clearly outline when a fee becomes payable, how it is calculated, or the circumstances in which multiple fees could arise. Communication with consumers can be inconsistent, particularly when moving from sole to multi-agency arrangements. Inadequate record-keeping further complicates the resolution of disputes, especially when evidence of communication or viewing records is incomplete.

The Ombudsman emphasises that these issues do not point to deliberate wrongdoing, but rather to weaknesses in processes that leave both agents and consumers exposed.

Call for Process Improvement

Preventing dual fee disputes requires a sector-wide focus on improving processes. Agents are urged to ensure that contractual arrangements are clear, comprehensive, and properly documented from the outset, including agency periods, termination procedures, and fee conditions. Enhanced communication with consumers is also highlighted as essential.