Greg Jemmeson: Thanks to Brian, really the most important thing in an agency contract is a real estate agent is not allowed to pay a commission, unless they have a valid agency agreement in effect. Well, basically, the Property Stock and Business Agency Act sets out requirements that if there is no written agreement, it must be signed by both the licensee and the client, it must abide by all the rules. And if the agent signs, then the agency`s agreement must be served on principle within 48 hours. In NSW, it is mandatory for an agent to separate any money processed on your behalf into a trust account and not to mix it with Agency funds. It is the standard and good practice to comply with it in all countries and territories, and your agency contract should set it clear. Greg: That`s right. Yes, yes. Other common errors we see are that the licensee is not properly described, so the licensee is normally the company for which the agent works, not the licensee. This should therefore be a proprietary limit, often the wrong license number is inserted, because it is the person`s license number and not the company`s license number.
Other errors that we frequently see is that the agent did not give in detail which lawyer could act on behalf of the seller, which may be the recommended form of the sale, quite often the inspection report is not signed and dated. The agent may not have completed what the market`s opinion of the sale price is. I have even seen agency agreements that have left the commission area empty. This will of course be a pro bono sale. Greg: Nothing has been done by the courts yet, which is a precedent. My legal design and a better opinion would be a small mistake if, for example, the agent does not put what his recommended form of sale is, perhaps the license number is wrong. Maybe! Another, I think it would not affect the agency agreement if they forget to enter the details of the lawyer, or they are not aware of the lawyer at the time of the conclusion of the agreement. But until we have to go to court and fight one of these issues, the best perspective is always to fulfill the agency agreement.
Don`t leave space, make sure you fill it properly. The agent should be required to transfer all of the investor`s money into a fiduciary account and to maintain good accounts that properly document the Agency`s revenues and expenses. Appropriate access to these accounts should be given to the awarding entity. As part of an exclusive agency, a seller is authorized to receive the commission or any other premium agreed upon at the time of the sale of the property and in accordance with the terms of an agreement, whether or not the seller is the actual reason for the sale. If the property for sale is a residential property, the appointment can last up to 90 days. The appointment may include the provision that, at the end of the exclusive agency`s life, the appointment of the representative continues on an open list that can be terminated at any time by the agent or owner. A real estate agent may be reconstituted for an exclusive residential real estate sales agency for one or more conditions of no more than 90 days.