Greg: Yes, yes. Well, there are a lot of things that go into an agency agreement, and probably one of the simplest tips is not to leave anything empty. Now, the most common mistakes we see are that not all principles names have entered properly. So they don`t put initials, but they have to load the parts with full names. The cooling-off period gives you time to read the agreement, consider the conditions you have agreed to, including the agent`s expenses, and get independent advice if you have any doubts. Greg: Yes, of course, the other thing is that we know that with an agency contract, there is a cooling phase. And the cooling phase doesn`t stop until all parties sign up. So if you have three principles, and only two characters, if a third signs two weeks later, then you can exercise the cooling time. That, of course, is what we want to avoid. If you use a real estate agent to sell your home, take care of it to work for you. They sign with them an agency contract which is a legally binding contract and pay them a fee, usually in the form of a commission.
Shop for an agent It`s a good idea to talk to at least three real estate agents. Make sure they have a good knowledge of the local environment. Compare their commissions, other expenses, marketing plans and sales balance sheets in your suburb. Since this person works for you, it is important to evaluate them in depth. Make sure they are duly made redundant. Be realistic about the price Don`t just sign up with an agent because they give you the highest estimated selling price. In your environment, pay attention to the sale of similar properties – look at the selling prices to get an idea of the value of your property. It is against the law when a broker misstates the sale price of a property. This can be a dishonest way to influence you, to sign up with them if you think they will bring you a higher price for your home. With these types of appointments, you or the client can terminate the agreement. To do so, you or your client must cancel in writing for at least 30 days. You may have a shorter notice period if you and the customer agree on this point.
If you decide to terminate (or revoke) the agreement during the cooling-off period, you must send a “notice of resignation” to the agent. The broker may ask you to pay for advertising, auction fees, cleaning, decoration or landscaping, if stipulated in the agreement. Greg: That`s right. Other common mistakes, I`ve seen agents not paying for marketing fees. So they put a line in the field of marketing. It`s a mandatory term. A blow from marketing can therefore invalidate the agency agreement. In the past, the courts have adopted a strict interpretation of agency agreements and, simply by forgetting to seize the details of the seller`s lawyer, the agency agreement invalid. Today, there has been some relief introduced by fair trade through some changes in the legislation, known as Section 55a. And what is happening here is that a court now has the power to miss out on a small error in an agency contract. If, in paying the commission, it was still fair and reasonable and not unfair. You can waive your right to a cooling-off period or waive it by signing a separate waiver form when the agreement is signed.
Greg Jemmeson: Thanks to Brian, really the most important thing in an agency contract is a real estate agent is not allowed to pay a commission, unless they have a valid agency agreement in effect. Well, basically, the Property Stock and Business Agency Act sets out requirements that if there is no written agreement, it must be signed by both the licensee and the client, it must abide by all the rules.