You should tell yourself what commission you have to pay, when you have to pay and how that payment is calculated. Commissions can vary from agency to agency, you can compare different agencies or negotiate with your preferred agency. The agent must explain the formula used and give you a dollar estimate of the commission you pay if your property is sold at its estimated price. As a general rule, the agency will take its commission from the down payment if the contract becomes unconditional for the sale and purchase. We have seen scenarios in which an agent presents a potential buyer during his or her agency period alone, but the sale does not go any further and the single agency contract is terminated. If the property is then marketed through other brokers and eventually sold to the imported buyer by the original agent, that original representative is entitled to a royalty if he can prove that it is the effective cause of the eventual sale [Foxtons Ltd v. Pelkey Bicknell and another]. There has been a lot of talk about it and what is an effective introduction that I am not dealing with in this article; Suffice it to say that an effective introduction can probably contribute to the transaction [Nahum v Royal Holloway and Bedford New College] when obtaining a buyer, and the actual introduction is the one that actually led to the sale. Exclusive sales of user rights provide exclusive sellers with better protection with respect to their rights. The rules are simple: if there is a sale during the exclusive sale period, the agent receives his fee.
The seller wanted the broker to amend his agency contract so that his pricing liability would cease and to compensate the agent for the aggravation and inconvenience caused by the agent`s actions. On settled.govt.nz (external link), we recommend that sellers get legal advice before signing the agency contract. The duration of the downtime in the standard REA clauses for residential real estate agencies is six months, and in the standard REA contractual clauses for rural agencies, the default period is 12 months. From a legal point of view, the Commission of Information Regulations 1991 establishes different conditions for the validity of a brokerage contract. These include the obligation to make a written statement from the outset: if you can prove that your buyer was not presented to you by your agent, you may not be required to pay them a fee according to the agreement. You can choose to list your property later with a new agency. If the first agency has already done work that helps sell the property (for example. B the introduction of a potential buyer who then buys it), you may still have to pay them a commission. Make sure you have inquired with your new agency about the risk of paying two commissions.