Signing an agency agreement

An agency agreement is a legally binding contract between you and your real estate agent.

Summary of important things to know
  • An is a legally binding contract between you, the seller of the property, and a real estate agency.

  • Sole agency agreements and general agency agreements allow different things.

  • You can negotiate what’s in an agency agreement, including the timeframe it covers, how much commission you’ll pay and any expenses you’ll pay.

  • You need to read and understand the agency agreement, and you should also get legal advice before you sign it.

  • Your real estate agent must tell you about any rebate, commission or discount they receive in connection with any work they do for you.

  • It’s important to check that your agent is licensed. Use REA's public register to check their details and see if they’ve had any complaints upheld against them in the last 3 years.

  • If you deal with an unlicensed person, the Real Estate Authority won’t be able to help you if things go wrong.

  • Remember, the real estate agent works for you, the seller, and you pay them for their services. Make sure you’re happy with their approach before you decide to sign an agreement with them. If you are unsure about any terms in the agency agreement, seek independent legal advice.

  • It is important to tell the agent everything you know about the property because an agent is required to disclose known defects of a property to a potential buyer. An agent may cancel an agency agreement if you instruct them not to disclose known defects.

  • Agents must give you a copy of REA’s agency agreement guide before you sign an agency agreement.

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Signing an agency agreement

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