If you’ve ever wondered what should be in an agency agreement after you have chosen and agent to help you sell your property, this might help.
The agreement must include:
- full identification of the parties and the property
- what services the agent will provide for you and the commission or fees that you must pay if the property is sold
- an estimate by the agent of the price range or selling price for the property
- when you must pay the agent his commission – usually on completion of the sale
- how you will pay the agent, i.e. by deduction from the deposit or by separate payment after settlement.
- Circumstances in which commission is payable
- The extent of the agent’s authority, for example, may he make changes to the contract and/or exchange the contract on your behalf.
- If the agreement has no fixed term, then it should detail how it may be terminated by either party.
Commissions are not set by law. They are negotiated between principal and agent. Similarly you can get estimates and cap expenses for advertising, brochures and others.
Lastly you must have a contract for sale prepared and a copy given to the agent. For this you should consult your solicitor or conveyancer.
We at King Cain can assist you on this or any other legal issue. If you have a legal issue worrying you, feel free to call me Paul Carver Accredited Specialist Business Law on 6333 4400 or call in to our offices at Level 1 Suite 4 90 Keppel st., (cnr Keppel & Bentinck streets) Bathurst for an appointment.