The Estate Agent agreement
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The Estate Agent agreement
What is an Estate Agent’s commission?
When selecting an Estate Agent, it is always a good idea to ask for their commission fees and figures.
When a Seller contracts an Estate Agent to sell a home, he or she will be required to sign a marketing sales agreement.
This is important because these amounts can vary between Estate Agents.
An Estate Agent’s commission is seen as a fee for marketing and selling your home and is fully negotiable.
There is no fixed amount marked for commission but it is currently benchmarked at a recommended 3% - 7.5% of the selling price, which is dependent on the value of a home.
Should your property not sell, the commission fee becomes null and void and all marketing costs will be covered by the selected Agency.
What is in the sale agreement?
When a Seller contracts an Estate Agent to sell a home, he or she will be required to sign a marketing sales agreement.
The sale agreement will stipulate details of the services offered by the Estate Agent and other legally required information such as commission fee percentage, mandate details, a comprehensive marketing plan and expiry date of contract.
The marketing plan will state where the property will be advertised and details regarding which property portals will host the property listing.
The expiry date of the sale agreement is the date by which the property must be sold. Failing this, the Seller has the right to cancel the contract or take on another Estate Agent.
A copy of this document should be sent to the Seller’s Attorney/Conveyancer for checking before signing.
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