Can you explain how to draft an agency agreement?
Page 3 of 3 pages GENERAL AGENCY: I /We being the Client/s appoint Waterford Real Estate Ltd as general agent. The agency commences on (date) (the Commencement Date) and continues until midnight on (date), unless cancelled prior by either party giving seven (7) days' written notice to the other party. Signature/s: COMMISSION AND EXPENSES Payment of commission: The Client must pay the Agent the commission, on the terms set out in this agreement, if: In the case of a sole agency, the Client enters into an agreement to sell or exchange the Property (or part of it) at any time during the term of the agency and the agreement becomes unconditional (whether during or after the term of the agency); or In the case of a general agency, the Client enters into an agreement to sell or exchange the Property (or part of it) at any time during the term of the agency, through the instrumentality of the Agent or to a purchaser introduced by the Agent and the agreement is or becomes unconditional (whether during or after the term of the agency); or In the case of either a sole or general agency, the Client enters into a private agreement to sell or exchange the Property (or part of it) within a period of six (6) months following the date of expiry, cancellation or termination of the agency, through the instrumentality of the Agent or to a purchaser introduced by the Agent, and the agreement is or becomes unconditional (whether during or after the six (6) months period. In this subclause 'private agreement' means any agreement to sell or exchange the Property or (part of it) in the absence of an effective agency agreement between the Client and a real estate agent holding a licence under the Real Estate Agents Act 2008. Schedule of fees: Freehold: On the first $350,000 4.0% plus GST On the balance 2.0% plus GST Leasehold: Freehold charges plus one third The following is an estimate of the commission payable on the unconditional sale of the subject property, based on the highest assessment of market value as provided to the client in the market appraisal document dated (date). Highest estimated market value: S First $350,000 @ 4% exclusive of GST: (a) 5 Balance of sale price @ 2% exclusive of GST: (b) $ Total (exclusive of GST): (c) 5 GST on (c) calculated at 15% 5 Total commission, inclusive of GST $ Note: Any agreed marketing expenses which are the responsibility of the vendor will be separately invoiced. Signature of authorised agent/ signatory of Waterford Real Estate Ltd Agent's statement relating to rebates, discounts and commissions 1. Waterford Real Estate Ltd, the Agent, confirms that, in relation to any expenses for or in connection with any real estate agency work carried out by the agency or the agency's delegated personnel for the client(s) in connection with the transaction covered by this agency agreement (a) Will NOT receive, and is not entitled to receive, any rebates, discounts or commissions, OR (b) Will receive, or is entitled to receive, the rebates, discounts and commissions specified below. Select the paragraph above that applies 2. Omit this paragraph if you selected paragraph 1(a) above. If you selected paragraph 1(b) above, provide the specific details for each rebate, discount or commission. NOTE: The commission recorded in the Schedule of Fees above is not applicable here. Expenses to be incurred (Specify goods or services Provider of rebate, discount or Amount of rebate, discount or to which rebates, discounts or commission relates) commission (Specify name of person or commission $ organisation) (Specify actual or estimated amount, incl. GST) Date: Signature (Agent)
