What Is A Sales Agency Agreement?

Do you assist clients with selling or purchasing properties or goods such as cars in New Zealand? You may need a Sales Agency Agreement.

If you’re providing services to help buyers acquire items in New Zealand, you’ll need a Sales Agency Agreement to outline the services you’ll provide to your clients, payment terms and your authority to act on behalf of your client.

Why Do I Need A Sales Agency Agreement?

A Sales Agency Agreement is a sensible choice – particularly if you’re dealing with property or cars, which tend to be high in value.

If you work on a commission basis, it is crucial that you have your agreement in writing to ensure that you receive what you’re owed after the sale has taken place.

What To Include In A Sales Agency Agreement?

It’s important to ensure that your Sales Agency Agreement includes:

• The scope of services that you will provide for your client, including details of the product you’ll be purchasing for your client
• The amount of fees or commission that you’ll be receiving for the services
• The circumstances under which you’ll be entitled to payment – is it when the property or the car is purchased or sold?
• The method of payment that you will receive – will you deduct your commission from the deposit money?
• The extent of your authority to act on behalf of your clients – this could include instances where you, as the agent, are allowed to exchange a sale contract on behalf of your client or make changes to the sale contract
• The term of the agreement, as you could have either a fixed term or an open-ended term for the duration of the sale

Example

Jim is a Real Estate Agent at an agency that helps clients buy and sell homes in New Zealand. Stanley is looking to buy an investment property and has engaged Jim’s services to help him purchase one.

Stanley is very busy with his day job, and wants Jim to be able to exchange sale contracts on his behalf.

Since properties are high in value, Jim secures a Sales Agency Agreement to ensure that he receives the commission he is owed for the purchase of the property.

This agreement also includes authority to act terms, so that Jim is able to exchange contracts on behalf of Stanley.

Get In Touch

If you’re a sales agent who purchases property or goods such as cars for their clients in New Zealand, it’s vital to ensure that you have a Sales Agency Agreement in place.

If you need an agreement drafted, or other legal services for your sales agency arrangement, don’t hesitate to contact our friendly team at [email protected] or give us a call on 0800 002 184 for a free, no-obligation chat.

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