When you sign with an agent on an exclusive agreement, you are locked in with that agent until the days of the exclusivity expire. You don’t know what the experience is going to be like with that agent at the beginning, so it’s something you don’t think about. How many days you’re locked in, that is. But, it’s worth taking note of the days and make sure you keep them minimal, just in case you get one of those agents who promise you the world and deliver nothing.

Once you’re locked in though, you are limited to what you can do with the sale of your property. Simply put, the agent is entitled to their commission if the property sells within their exclusive agreement. That is whether they sell it, you sell it or another agent, it doesn’t matter, you must pay them. If you sell through another agent, you may be up for a double commission. This is where you must pay both agents commission, even if one didn’t do anything.

Your best course is to speak with your agent, or even a superior at the agency. If you’re wanting to move mid campaign, then obviously something has happened to warrant that. If you talk openly about it and have them provide you with a written response stating they withdraw the exclusive authority, then you can move onto the next agent. Most agents will see eye to eye and don’t want to waste their time with somebody who doesn’t want to deal with them.

Another option is to have a lawyer or trained professional, have a look over the authority and see if they have filled it in incorrectly. It only takes minor mistakes for an authority to be void and knowing agents, plenty of them make plenty of mistakes. This is one that is well worth considering. On a side note, if you have been supplied an REIV authority, make sure you have received a copy for yourself at the point of signing. If did not receive a copy for yourself, then you do not have to pay any commissions, so exclusivity doesn’t really matter at this point.

The only thing exclusivity holds you too, is paying commission. In essence, you can list your property with as many agents as you want, you’ll just have to pay multiple commissions. If you’re at the beginning of the journey, only sign for maximum sixty days. If you’re going to auction, only sign on for fourteen days after auction, max thirty. If you’re already locked in, then try some of the options above or if its that bad, withdraw your property from the market and wait it out.

 

DISCLAIMER

The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.

Leave a Reply