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Agency agreement quiz

This quiz will test your knowledge of agency agreements.

5-10 minutes

1. Is the agency agreement legally binding?

Ka pai!

Er, not quite

Yes, it is a legal document that entitles the agency to list your property for sale for a given period of time. It's a contract, so you should ask your lawyer or conveyancer to review it before you sign.

2. Can you cancel the agreement after you've signed it?

Ka pai!

Er, not quite

But it’s not easy. There is a short window of time when you can cancel a residential sole agency agreement.

You can cancel it in writing by 5pm the next working day after you receive a signed copy.

If the agent approaches you out of the blue and you sign an agreement, you have up to 5 working days to cancel under the Fair Trading Act.

It is difficult to cancel the agreement outside these circumstances, and you should get legal advice if you want to cancel an agency agreement.

3. What guide must the agent give you before you sign an agency agreement with them?

Ka pai!

Er, not quite

The agent must give you a copy of REA's New Zealand Residential Property Agency Agreement Guide before you sign a listing agreement with them.

The guide includes useful information about what to expect from your agent.

4. Can you negotiate the terms of the agency agreement?

Ka pai!

Er, not quite

You can negotiate the terms including the timeframe it covers, the amount of commission you pay and payment of marketing expenses.

5. True or False: A general agency agreement allows you to sell the property privately and list with a number of agents.

Ka pai!

Er, not quite

A general agency agreement is not exclusive, and you may employ other agencies and/or market your property privately.

6. Can an agent give you a verbal appraisal instead of a written one?

Ka pai!

Er, not quite

An agent must supply you with a written market appraisal before you sign the agency agreement. This is the agent’s best estimate of the price they expect your property to sell for based on the sales and prices for similar properties in your area or a similar area.

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