Nicola Kelland - Agency Agreements?

Late last year the Real Estate Agents Authority recommended that agency’s adopt some changes to some of the standard clauses in agency agreements. These changes were made in consultation with the industry, REINZ. They are designed to better protect consumers when selling their home and the conflict that can arise when a purchaser views a property through one agency and then buy’s the property through another, leaving the owner in a situation where they could be libel for two commissions on the sale.

The voluntary clauses for agency agreements also give sellers of residential property more certainty about when an agency agreement ends and which agent can claim a commission when sellers change real estate agencies. Currently Over 700 agencies are now using the residential clauses, every company that has agreed to adopt these changes is listed on the REAA website. These clauses make it clear who is owed a commission when a property sells and will avoid sellers getting the nasty surprise of being asked to pay more than one commission.


Key aspects of the residential standard clauses include:

If a Sole Agency does not have an end date it will automatically expire after 90 days.
General agency agreements can be cancelled on 7 days written notice.

For an agent to claim a commission an agreement for sale and purchase must have been entered into during the term of the agency and that agreement must eventually become unconditional.

Only one agent can claim a commission, and only when the buyer and seller have signed a sale and purchase agreement (even with conditions) at the time that the agent is acting for the seller.


If the seller cancels their contract with the agent and then sells privately to a buyer previously introduced, the agent can only claim a commission for 6 months after the contract ended.

The result of these changes will mean less disputes between agency’s and protection for vendors when selling their homes. Make sure, that the agency agreement you sign has these clauses included..