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If you are selling property on behalf of clients as a real estate agent in New Zealand, you’ll need a Real Estate Agent Agreement. This agreement outlines the services you will provide to your clients, the estimated selling price of the property, and information about fees and commissions.
It also sets out the extent of your authority to act on behalf of your client, along with provisions for a cooling-off period as per New Zealand’s real estate regulations.
Why Do I Need A Real Estate Agent Agreement?
In New Zealand, the Real Estate Authority (REA) stipulates that before an agent can sell a property on behalf of a client, they must have a Real Estate Agent Agreement in place, as well as a valid real estate licence. This is to ensure transparency and protect the interests of all parties involved.
If you’re pursuing a career as a real estate agent, you may want to consider having an agreement specifically drafted for your needs, which you can then tailor for each of your clients.
What Is A Real Estate Agent Agreement?
A Real Estate Agent Agreement in New Zealand includes clauses relating to:
- The services to be provided
- Any fees or commissions that the client will pay for the agent’s services
- How and when the agent is entitled to take the fees/commissions owed to them
- The agent’s authority to act on behalf of the client, and whether the agent is allowed to amend the contract of sale on the client’s behalf
- The estimated selling price of the property (this can be either a single price or a price range)
- The ways in which the agreement can be terminated
- Provisions relating to the cooling-off period as required by New Zealand law
Example Of A Real Estate Agent Agreement
Brett asks his friend, Robert, a licensed real estate agent in New Zealand, if he could help sell his property.
Robert then presents Brett with a Real Estate Agent Agreement, which outlines the services that he’ll provide, what fees he intends to charge and when he is entitled to be paid, the authority Robert will have to act on Brett’s behalf, and an estimated selling price of Brett’s property.
How Can I Get One?
To check if you or your agent has a valid real estate licence in New Zealand, you can perform a licence check online through the Real Estate Authority’s website. If you’re a real estate agent who’s ready to start selling, don’t hesitate to give us a call on 0800 002 184 or email us at [email protected] for a free, no-obligation chat about your Agreement.
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