Online agents who charge upfront fees have been told that they must forewarn the public if the charge applies regardless of whether the property sells or not.

This week the Committee of Advertising Practice (CAP) issued new guidance via the Advertising Standards Authority website, with one sub-heading saying “Get what you pay for”.

The advice is prefaced by: “Just as bookshops, taxis and takeaways have seen their industries revolutionised by online companies where you can order anything you need at the press of a button, estate agents have also found themselves competing with new ‘online-only’ companies.

“Property is big business and the popularity of these services has grown dramatically over the past few years, as has the number of complaints to the ASA about ads for them. To help online estate agents see their ads through to successful completion, here are some key areas to pay attention to.”

The advice goes on to tell online agents to be careful about claiming ‘local’ expert knowledge – although it does say that Local Property Experts only need local knowledge, rather than to be based locally.

Additionally, the new CAP advice says that online agents who claim to offer savings over fees charged by traditional firms must offer proof that they really are cheaper.