If you change your mind after signing a single agency contract, you can cancel it until 5:00 p.m. on the first business day after receiving a copy. This must be done in writing, i.e.: In a letter, by email or fax. Your representative must also provide you with a copy of the REAA AGENCE GUIDE that explains the rights of the agreement. Make sure you don`t jeopardize your relationship with the current listing agency – don`t make any negative comments about how the property was listed or about the listing agent. If you have found a real estate agent who offers a “No Sale, no fee” service, you do not have to pay if the sale is cancelled. But there may be other penalties for early termination of the contract. Whether you are terminating an agency contract within the first 90 days or abroad, be especially careful if you plan to sign up with another agent. If a cancellation is not done correctly, there is a very good chance that you will owe a commission to two groups of agents. That is why independent legal advice is so important. If you want to terminate an agency contract, always seek advice from your lawyer.
Your lawyer should be able to give you a guide to your particular situation. Similarly, advising a lawyer limits your financial risk. For this reason, lawyers have professional liability insurance. If you receive false advice and you are on the line of paying one or two commissions unexpectedly, you will have at least one lawsuit against your lawyer and you will eventually be able to recover some or possibly all of the money owed by your lawyer. On settled.govt.nz (external link), we recommend that sellers get legal advice before signing the agency contract. Real estate agencies can use standard clauses in their agency contracts. These clauses approved by REA protect you: In accordance with S 131 (1) of the Realtors Act 2008, exclusive agency contracts of more than 90 days may be terminated at any time by written notification to the broker. Most agencies know that. This is why the agreement will almost always become a general agency at the end of the agency`s initial period. The agreement is then subject to separate conditions that will apply as soon as the agreement becomes a general agency. Why does it matter? If you extend the original individual agency beyond 90 days, it means that you can terminate the contract unilaterally at any time from the 91st day.
If you enter the agreement into a general agency, you may find that you must give notice (usually 14 days of written termination) to terminate the contract, which means that the contract actually lasts at least 104 days if it is terminated as soon as it becomes a general agency. You need to explain when the agency agreement expires and how the lender can cancel it. You may be contacted by a supplier who wishes to sign a single agency contract with you, while he has an exclusive agency agreement existing with another agency. We advise you not to accept this creditor as a customer until the end of the existing agreement. If you have a single agency agreement, you may not be able to terminate the contract prematurely unless the Agency agrees, but you can withdraw your ownership from the market until the agency contract expires. If the agency agreement is more than 90 days, you or the Agency can terminate the contract at any time after 90 days. What happens when an agency agreement is terminated depends on what the agreement says. If your agency uses standard clauses, you can read the standard clauses for housing agency and campaign agency contracts on our website here. The broker is able to terminate the contract without the entry of your agent.