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