Agency Agreement Nz

We are often asked the question: “Do I have to list my house with a single agency or a general agency?” The agency agreement names your elected agency and defines what you allow it to do, for example: a general agency agreement gives more than one agency the right to market your property. You sign a separate agreement with each agency, but you should only pay a commission to an agency. Agencies should talk to you if you risk paying two commissions. In a typical case, a seller listed his property with an agent. The broker presented the property with a buyer who made an offer. The seller was not satisfied with the offer and refused. After the end of the agency contract, the seller withdrew the property from the market. A year later, the seller promoted the property privately and sold it to the buyer who had made the rejected offer. The seller negotiated the price on the erroneous assumption that he did not have to pay commission to the agent because the agency contract was over. The agent heard about the sale and successfully requested a commission.

“Please accept this as an indication that [I/us] terminate with immediate effect, in accordance with Law S 131 (1) of the Realtors Act 2008 2008, the single agency agreement signed on the [date] and all general agency agreements subsequently concluded between [the name of the agency] and [the seller`s name] with respect to the property at [the address]. If you decide to terminate the agency contract, seek advice from your lawyer first. They must inform the Agency and the notice should be set out in the general agency agreement. The notice period is provided to allow the Agency to conclude the initiations before the end of the contract. If the single agency agreement is valid for a residential property and for a period of more than 90 days, you or the seller can terminate the contract at any time after 90 days. If a real estate agency comes in second, it could promote a general list of agencies if you specify a preference for another company. The stand-down period is usually six months, but the length of the stand-down period can vary from agency to agency. It is important to read your agency agreement and get legal advice if you are not sure what this means to you.

You can contact another agent`s client to explain what you can offer them when their current agency agreement ends. If the parties to a single agency agreement referring to subsection 1 enter into a written extension of the single agency contract, the signing of the renewal contract is considered to be the signing of a new single agency agreement for the purposes of this subsection. 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. You can ask questions, seek independent advice, talk to more than one agent and negotiate what is written in the agency agreement. You can negotiate deadlines, commissions, expenses or services. Make sure you and your lawyer or intermediary are satisfied with the agreement before signing it. If the customer has signed the agreement after an unsolicited approach on your part, he can terminate the contract within 5 business days from the receipt of a copy of the contract.

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