Recently I spoke with someone who had sold
their property and was shocked that the real
estate was entitled to a commission, even
though it was the owner who had found the
buyer. This goes to show why it’s important
to know what contract you’ve signed when
you appoint a real estate agent to sell your
property.
I’m John Gallagher from Argon Law and I
would like to tell you some important things
about appointing an agent to sell your property
in Queensland.
When selling real estate, your relationship
with your agent is of vital importance. A
key building block in that relationship is
the legal contract or appointment form you
sign with the agent.
Real estate agents operate in a very competitive
market, so you should carefully consider the
alternatives before you sign. And chose the
option that best suits your circumstances.
The first thing to know is that the appointment
must be made using the correct form. If that
form is not signed by both the owner and the
agent then the appointment is not effective
and the agent is not entitled to claim a commission.
There are 3 different types of appointments.
These are:
Open listings,
Exclusive appointments; and
Sole appointments.
With an open listing, an owner can appoint
many different agents and it is generally
only the agent who is the effective cause
of the sale that can claim a commission.
Under an exclusive appointment, the agent
is entitled to be paid a commission on the
sale of the property. This is the case even
if the buyer is introduced to the property
by the owner or another agent during their exclusive appointment
A sole appointment is the same as an exclusive
appointment except that the agent is not entitled
to a commission if the owner is the effective
cause of the sale.
Another key point to be established in the
appointment form is the rate of commission.
There is no set maximum or minimum. It is
easy to underestimate how hard an agent has
to work to sell property and how much effort
goes into building up a trusted reputation
with buyers, but at the end of the day, commission
is negotiable.
If you have any queries about any other aspect
of appointing agents or property law in general,
leave a comment below. And if you know someone
getting ready to sell their property, please
share this video with them.
