Sir, - I refer to your article headed "Complaints Against Estate Agents' Charges" (July 21st).
It is important that readers note that the article does not address estate agents' fees, which arise, in all but the rarest of cases, only when a property is sold. The article deals solely with outlay incurred on the vendor's behalf. There is nothing wrong with estate agents seeking to recover outlay legitimately incurred on behalf of clients. After all, newspapers charge for advertising whatever the outcome of the marketing campaign.
The IAVI Rules of Conduct require IAVI members to confirm all fee and outlay arrangements with the client in advance. Life would be simpler if all agents were legally obliged to confirm fees and outlay in writing, as required by the IAVI, in order to recover either - as legal practices must.
The IAVI should be informed when one of its members fails to confirm fees and outlay in writing in advance of marketing. But even where written confirmation is not provided, I believe that only in the tiniest number of cases has an advertising budget not actually been agreed between vendor and agent. There is reference in the article to the "generous discount" kindly afforded to estate agents by a newspaper industry that takes a substantial eight figure sum annually by way of advertising from property. If one hires an external consultant he or she will add a 15 per cent service charge to all goods and services ordered through their offices. Advertising Agencies are offered a modest discount by newspapers. Auctioneers in general receive a similar modest discount from newspapers, but this reflects the fact that virtually all display advertisements now placed in the columns of the major national newspapers are fully prepared in-house by auctioneers using the latest technology and delivered "on a plate" for publication.
In addition, the agent guarantees payment to the newspapers, who consequently do not have to pursue each property owner for the cost of each advertisement. - Yours, etc.,
Alan Cooke, Chief Executive, Irish Auctioneers & Valuers Institute, Merrion Square, Dublin 2