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If you are selling property on behalf of clients as a real estate agent, you’ll need a Real Estate Agent Agreement. A Real Estate Agent Agreement outlines the services you will provide to your clients, the estimated selling price of the property, and information about fees and commissions.
It also sets out the extent of your authority to act on behalf of your client, along with provisions for a cooling off period.
Why Do I Need A Real Estate Agent Agreement?
According to the NSW Department of Fair Trading, before an agent can sell a property on behalf of a client, they must have a Real Estate Agent Agreement in place, as well as a valid real estate license.
If you’ve got a career as a real estate agent, you may want to consider having an agreement specifically drafted for your needs, that you will be able to re-purpose for each of your clients.
What Is A Real Estate Agent Agreement?
A Real Estate Agent Agreement includes clauses relating to:
- The services to be provided
- Any fees or commissions that the client will pay for the agent’s services
- How and when the agent is entitled to take the fees/commissions owed to them
- The agent’s authority to act on behalf of the client, and whether the agent is allowed to amend the contract of sale on the client’s behalf
- The estimated selling price of the property (this can be either a single price, or a price range)
- The ways in which the agreement can be terminated.
- Provisions relating to the cooling off period.
Example Of A Real Estate Agent Agreement
Brett asks his friend, Robert, a licensed real estate agent, if he could help sell his property.
Robert then presents Brett with a Real Estate Agent Agreement, which outlines the services that he’ll provide, what fees he intends to charge and when he is entitled to be paid, the authority Robert will have to act on Brett’s behalf and an estimated selling price of Brett’s property.
How Can I Get One?
Want to check if you or your agent has a valid real estate license? You can do a licence check online through the Fair Trading website or call them on 13 32 20.
If you’re a real estate agent who’s ready to start selling, don’t hesitate to give us a call on 1800 730 617 or email us at team@sprintlaw.com.au for a free, no-obligation chat about your Agreement.
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