Page 43 - Introducing B&W Real Estate Taupo
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Sole agency and general A general agency agreement gives
agency agreements allow more than one agency the right to
market your property. You’ll sign a
different things separate agreement with each agency
A sole agency agreement gives one but should only pay a commission to
agency the exclusive right to market one agency. The agencies should tell
and sell your property. you if there is a risk of you paying two
commissions.
If you sign a sole agency agreement, there This disclosure is done in a format that must
are some things you should be aware of: be included in the agency agreement.
The agreement must state either:
• You shouldn’t sign another agency
agreement with anyone else. If you do, you • the estimated amount of rebate, discount
may have to pay both of the agencies a or commission and its source, or
commission when your property sells.
• that the agent won’t be receiving any
• If you sell the property privately with a rebates, commissions or discounts.
sole agency agreement in place, you will
still need to pay the agency a commission Recommended standard clauses
when you sell. Real estate agencies can choose to use
• If you change your mind immediately after standard clauses in their agency agreements.
signing, you can cancel the agreement These REA-approved clauses help protect
by 5pm on the first working day after the you by:
agent has given you a copy. You must • reducing the likelihood of you being
cancel in writing (for example, by letter charged commission by two agencies
or email). • clarifying when the agreement ends and
• If you sign a sole agency agreement for a when you need to pay a commission.
term of more than 90 days, either you or We recommend you only use agencies that
the agency can end the agreement after use these standard clauses. Ask your agent
90 days. This must be done in writing. about the clauses before you sign.
• In some agreements, cancelling a sole
agency agreement means it becomes a
general agency agreement. You’ll need
to cancel this too if you don’t want to You can ask questions, get
continue with the agency. independent advice, talk to more
than one agent and negotiate
Details of any rebates, discounts or what’s in the agency agreement.
commissions the agent may receive You can negotiate timeframe,
If an agent gets a discount, rebate or commission, expenses or services.
commission on any services they arrange Make sure you and your lawyer are
for you and you’re paying for, they have to happy with the agreement before
tell you. For example, an agent may receive you sign it.
a discount on the cost of advertising your
property in a newspaper.
