3 Methods to Appoint an Agent

There are 3 ways in which you as a vendor can engage an agent to sell your property;

Open Listing

• You appoint an agent to sell your property, but you retain a right to appoint other agents on similar terms, without penalty or extra commission
• No end date on the agreement is required and the appointment can be ended by either you or the agent at any time by giving written notice
• The agent is entitled to commission only if the agent is the effective cause of sale i.e. was the one to introduce the buyer to the property
• No commission is required to be paid to an agent if you as the vendor sell the property privately and none of the agents are the effective cause of sale

Sole Agency

• You appoint an agent to sell your property however there may be penalties if another agent sells the property
• The maximum term of appointment is 90 days and the minimum appointment is 60 days. If you agree on a term of more than 60 days, either party can end the appointment with a minimum of 30 days’ written notice. Otherwise the agreement ends at the contracted term.
• The agent is entitled to commission only if the agent is the effective cause of sale i.e. was the one to introduce the buyer to the property
• No commission is required to be paid to an agent if you as the vendor sell the property privately and the agent is not the effective cause of sale

Exclusive Agency

• You appoint an agent to sell your property however there may be penalties if you as the vendor or another person/agent sells the property
• The maximum term of appointment is 90 days and the minimum appointment is 60 days. If you agree on a term of more than 60 days, either party can end the appointment with a minimum of 30 days’ written notice. Otherwise the agreement ends at the contracted term.
• The agent is entitled to commission when your home is sold, regardless of who actually sells the property, if it is within the agreed timeframe or if they are considered the effective cause of sale

What is right for you is dependent upon your situation. If you would like to discuss these options further please send me a send me a message HERE, and I will point you in the right direction.