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property_agents_and_managers
English

Buyer's agency 

Agency agreement terms

1. Names of parties to agreement 

The agreement must specify the names of each of the parties to the agreement, including the licensee. 

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2. Information identifying the parties 

The agreement must specify the address of the person on behalf of whom the agent is acting, the licensee’s licence number and any business name under which the licensee conducts business.

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3. Authority of the person on behalf of whom the agent will act to enter into agreement 

The agreement must contain a statement to the effect that the person on behalf of whom the agent is acting warrants that the person has authority to enter into the agreement.

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4. Authorisation for licensee to act on behalf of person 

The agreement must include a term containing particulars of the extent of the licensee’s authority to act as agent on behalf of the person they are providing services to under the agreement.

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5. Period of duration of the agreement 

The agreement must contain a term indicating the period for which the agreement remains in force or indicating that the agreement remains in force until terminated. 

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6. Termination of the agreement 

If the agreement provides for its termination by a party to the agreement, the agreement must indicate how and when it can be terminated.

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7. Reimbursement of licensee 

If the licensee is to be entitled to any sum or reimbursement for expenses or charges incurred by the licensee in connection with services provided under the agency agreement, the agreement must include a term that:

(a) states that the licensee is so entitled,
(b) describes those services,
(c) specifies the amount that the licensee is so entitled to and when it is payable,
(d) states that those services and amounts cannot be varied except with the agreement in writing of the person on behalf of whom the agent is acting. 

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8. Remuneration 

  1. The agreement must include a term specifying:

    (a) the circumstances in which the licensee is entitled to remuneration (by way of commission or otherwise) for services performed under the agreement, and
    (b) the amount of the remuneration or the way in which it is to be calculated, and
    (c) when the remuneration is payable.

  2. If the agreement provides for the payment of commission calculated as a percentage of the purchase price, the term must also specify the amount of remuneration to which the licensee will be entitled calculated on the basis of a specified estimated purchase price.

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9. Property details 

The agreement must include a copy of the statement prepared by the agent and given to the person on behalf of whom the agent is acting, as required by the rules of conduct for buyers agents.

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10. Purchase price range 

The agreement must specify a price or price range as the maximum price or the price range the person on behalf of whom the agent is acting is prepared to pay for a property.

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11. Disclosure of rebates, discounts or commissions 

The agreement must include provision for the licensee to identify the source and amount or estimated amount of all rebates, discounts or commissions the licensee will or may receive in respect of expenses payable by the client for the services to be provided by the agent. 

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