Appointing an Agent for Sale

John Gallagher from Argon Law talks through important things to consider before appointing an agent for sale in Queensland. For more information visit our website

What are the key differences between Sole Agents, Exclusive Agents and Open Listings? How do your decisions here affect the commission the agent is entitled to be paid?

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When selling real estate, your relationship with your agent is of vital importance.  A key building block in that relationship is the legal contract or appointment form you sign with the agent.

Real estate agents operate in a very competitive market, so you should carefully consider your alternatives before you sign.

The first thing to know is that the appointment must be made using the correct form.  If that form is not signed by both the owner and the agent then the appointment is not effective and the agent is not entitled to a commission.

There are 3 different types of appointments. These are:

  • Open listings
  • Exclusive appointments; and
  • Sole appointments.

An owner can appoint many different agents on open listings and it is generally only the agent who is the effective cause of the sale that can claim a commission.

An agent appointed under an exclusive appointment is entitled to be paid a commission on the sale of the property to someone who is introduced to the property during the period of their appointment, even if the introduction is made by the owner or another agent.

A sole appointment is the same as an exclusive agent except that the agent is not entitled to a commission if the owner is the effective cause of the sale.

Another key point is the rate of commission.  There is no set maximum or minimum.  It is easy to underestimate how hard an agent has to work to sell property and how much effort goes into building up a trusted reputation with buyers, but at the end of the day, commission is negotiable.

If you have any queries about any other aspect of appointing agents or property law in general, please contact us on 07 5443 9988 or[email protected].

Argon Law is a Sunshine Coast law firm based in Maroochydore.  We are commercial lawyers, body corporate lawyers and property lawyers and are eager to assist you in any way we can.


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