When you engage a real estate agent to sell your property, you must sign a contract called an agency agreement. This is a legally binding contract authorising an agent to act on your behalf in relation to the sale of your property.
The agency agreement usually has a specified term and includes an estimate of the selling price, the service the agent will provide and commission you must pay the agent on the sale of your property. It may also include details of advertising and marketing costs.
There are several different agency agreements you may sign with your agent for the sale of your property.
The most common are:
1. Exclusive agency agreement
Exclusive agency agreements give the agent you choose exclusive rights to sell your property.
2. Open agency agreement
This lets you list your property with several agents. Many agents will only agree to exclusive listings. Open listings are not available in all states or Territories. You pay a commission to the agent who finds the buyer.
3. Auction agency agreement
This is effectively an exclusive agency agreement where the property is listed for auction.
View the full Sellers Guide