Why the contract matters more than the handshake
Nearly every dispute between a family and an estate sale company comes down to something the two sides remembered differently: whether the clean-out was included, who was allowed to buy before the doors opened, what happened to the things that did not sell, when the cheque was due. None of those disputes happens when the answer is written down. The contract is not a sign of distrust; it is the record of what you both agreed, made while you both still agree.
A good contract is usually two or three pages. It does not need to be written by a lawyer, and you do not need a lawyer to read it, though for a large estate or one in probate it is worth an hour of one's time. What it does need is a clear answer to every item below. If the company's standard contract is silent on one of them, ask for it to be added as a line, dated and initialled by both of you. A company that has been doing this for years will not mind. One that objects to writing down what it has just promised you is telling you something.
The clauses to look for
Work through these in order. Each one names what the clause should say, why it is there, and the question to ask if it is vague.
The company's legal name and address
The name on the contract should match the name you can find in your state's business register, and the name on the certificate of insurance. A trading name is fine if the legal name is there too.
Who is signing for the estate, and with what authority
If the house belongs to a parent who has died, the executor or administrator signs. If the owner is living, the owner signs, or someone holding power of attorney. Signing a sale contract for property you do not yet have authority over is the kind of thing that surfaces later, at the worst moment.
What is being sold, and what is not
The contract should say that the contents of the house are for sale except for a written list of reserved items. Attach that list, with photographs of anything valuable, and remove those items before set-up begins if you possibly can.
Sale dates and hours
The actual days and opening hours, not “a weekend in October”. If the company reserves the right to move the dates, the contract should say how much notice you get and whether you can refuse.
Set-up period and access to the house
When the company's staff will start work, how they will get in, who holds keys or the alarm code, and whether you may enter during set-up. Most companies ask families to stay away while pricing is under way; that is reasonable, but it should be agreed rather than assumed.
When the house is handed back
The date by which the sale is over, the company's equipment is out, and the house is in the agreed condition. This is what a buyer's closing date or a landlord's notice period has to be planned around.
The commission rate, and what it applies to
The percentage, whether it is a single rate or a sliding scale, and whether it is calculated on gross sales before or after card fees and sales tax. Our guide to what estate sale companies charge explains how to read this clause.
Any minimum, in dollars
A minimum commission is normal. It should be a number, not a phrase, and you should be able to work out what you would receive if the sale brings in half of what the company expects.
Every separately charged cost
Set-up fees, advertising extras, card processing, dumpster or disposal, security, permits, clean-out. Each with a figure or the basis for calculating it. “Plus expenses” on its own is not acceptable.
Payout timing and the accounting you will receive
How many days after the sale ends you will be paid, by what method, and what the settlement statement will show. Ask for an itemised list of what sold and for how much, with the commission and each cost deducted in plain sight. A single figure on a cheque is not an accounting.
Advertising
Where the sale will be listed, whether photographs of every room will be published, and when the listing goes live. Advertising is what brings the buyers, and the buyers are what set the price of everything in the house.
Staffing
How many people will be on site on each sale day, and whether they are the company's own staff. A house with three floors and one cashier is a house where things walk out of the door.
Security
How entry will be controlled, how small valuables will be kept, whether bags are checked, and what happens overnight between sale days. For an estate with jewellery, coins or firearms, ask whether those are sold on site at all.
Pricing authority and discounting
Who sets prices, whether you may set a floor on specific items, and what the discount schedule is over the sale days. Most companies reduce prices on the second and third day; the contract should say by how much, and whether your floor items are exempt.
Pre-sales and staff purchases
Whether the company may sell anything before the public opening, and whether its own staff or dealers it works with may buy. Either can be legitimate if it is disclosed; both are a problem when they are not. Ask for pre-sales to appear on the accounting like any other sale.
Your presence at the sale
Many companies prefer that family members are not present, and there are good reasons: buyers haggle less with staff, and it is painful to watch a parent's things sold. But the contract should say what you may and may not do, rather than leaving you to find out at the door.
Unsold items
This is the clause families most often skip and most often regret. The contract should say who owns whatever does not sell, whether it is left in the house, donated, removed, or kept by the company, and whether you get a say or a receipt. A clause that quietly gives the company everything that remains can be worth more than the commission.
Clean-out and the condition of the house
Whether the house will be emptied, to what standard (broom-clean, or simply cleared), by when, and at what cost. If clean-out is not included, the contract should say so plainly so that you can arrange it.
Damage, loss and theft
What the company is responsible for if something is broken during set-up, stolen during the sale, or damaged in the house itself. This is where the insurance certificate matters, and the contract should refer to it.
Insurance: ask to see the certificate
The contract should state that the company carries general liability insurance, and you should ask to see the certificate of insurance before you sign, not take the sentence on faith. The certificate names the insurer and the policy period. One call to that insurer confirms the policy is current. Any established company will have the certificate to hand.
Licences and permits
Which licence the company holds, and who issued it. Requirements vary by state and city; in most places a city business licence is what applies, and an auctioneer licence only if part of the sale is by auction. Our state licensing pages say what each state does and does not license, and where to look a business up.
Cancellation, by either side
What you owe if you cancel before set-up, during set-up, or after advertising has gone out; and what the company owes you if it cancels or fails to hold the sale. A cancellation fee that covers real costs already incurred is fair. One that equals the full expected commission is not.
How disputes are handled
Who you talk to first, and what happens if that fails. Many contracts name mediation or small claims court. What you want to avoid is a clause that waives your right to any recourse at all.
Questions to ask before you sign
These are the questions that turn the checklist above into a conversation. Ask them of every company you are considering, and write the answers on the quote.
Insurance and licensing
- May I see your certificate of insurance? Which insurer is it with, and when does the policy run to?
- What licence do you hold, and which office issued it?
- What is the legal name of your business, so I can look it up?
Money
- What is the commission, and is there a minimum? What would I receive if the sale brought in half of what you expect?
- What is charged separately, and how is each cost worked out?
- When will I be paid, and can I see an example of the settlement statement a previous client received?
The sale
- Who sets prices, can I set a floor on specific items, and what is the discount schedule?
- Will anything be sold before the doors open, and to whom?
- How many staff will be here each day, and how is the house secured between days?
- What happens to whatever does not sell, and who decides?
References
- Can you give me two families whose sales you ran in the last few months, and their permission for me to call?
- If something goes wrong on the day, who do I call, and what has gone wrong before?
The one line to remember
Estate Sale Connect has not checked any company's credentials. Ask to see their certificate of insurance and licence before you sign anything — any legitimate company will have both to hand, and one call to the insurer named on the certificate confirms it. That is the same note we print beside every company's own claims on this site, and it is the single most useful thing on this page.
What to do if a clause is missing
Most companies use a standard contract they have refined over years, and it will cover most of the list. When something is missing, the fix is a sentence. Write the term you agreed on the contract itself, or on a separate sheet headed with the date and the company's name, and have both of you initial it. “Company will remove all unsold items and leave the house broom-clean by 15 November at no additional charge” is a complete clause. So is “No items to be sold before 8 a.m. on the first sale day.”
If the company will not agree to write down something it has told you verbally, treat the verbal promise as withdrawn and decide accordingly. The guide to warning signs covers what that refusal usually means.
For a large estate, one in probate, or one where family members disagree, an hour with a lawyer who handles estates is money well spent. The contract is short; the consequences are not.
After you sign
Keep a copy of the signed contract and every attachment, including the reserved-items list and photographs of anything valuable. Keep the certificate of insurance, and the note of your call to the insurer. Keep the advertising once it goes live, the daily reports if the company provides them, and the settlement statement at the end. If a dispute ever arises, that folder is what settles it, and if none does, it is what you will need for the estate's tax return.
Then let the company work. You chose them because they know how to run a sale, and having read the contract, you know exactly what you are entitled to expect. If you have not chosen a company yet, describe the estate once and local companies will reach out to you, free, or compare companies near you first.