HELP with appointment of agent contract?!!

[neaka]

Hi everyone,

hubby and i are selling our 1st IP.

We are new to the selling process and have just received the paperwork from our chosen agent.

There are a few things on the paperwork i was hoping some of you experts could shed some light on?

Q1. The contract gives us the option of choosing an 'open listing' where we can appoint other agents at any time and also end the agents appointment at any time.
The other option is 'Sole agency and exclusive agency' which they have ticked already??? This states that the appointment is for a specified term up to 60 days. It also states if we are dissatisfied with the agents performance we have to pay damages for breach of contract?
My question on this is why wouldnt you select an open listing? And why have they ticked sole agency without giving us the option?

Q2. Relates to Advice about market price
it gives us 3 options
The client acknowledges in obtaining this appointment the agent.......
A.was not required by the client to give an opinion or supply material facts in respect to market price

B.was not required by the client to give an opinion in respect to the market price of the property but did supply a written statement of material facts for the client to take into account in deciding on a listing price for the property and such material facts are as detailed in the attached a)comparitive market analysis OR b)written explaination of the market value

C.HAS given the client an opinion about the market price of the property and supplied a written statement of material facts that the agent has taken into account in forming such an opinion and such material facts are as contained in the attached.

We had the agent give us an appraisal but i dont have anything in writing and they have left the section that asks for the quoted price at $0??

LAST question

Termination penalty apportionment
appointment agent 50% seller 50%

what the hell does this mean???

THANK YOU SO MUCH IN ADVANCE FOR READING THIS, ANY HELP IS APPRECIATED!

 

[kooki]

Hi everyone,

hubby and i are selling our 1st IP.

We are new to the selling process and have just received the paperwork from our chosen agent.

There are a few things on the paperwork i was hoping some of you experts could shed some light on?

Q1. The contract gives us the option of choosing an 'open listing' where we can appoint other agents at any time and also end the agents appointment at any time.
The other option is 'Sole agency and exclusive agency' which they have ticked already??? This states that the appointment is for a specified term up to 60 days. It also states if we are dissatisfied with the agents performance we have to pay damages for breach of contract?
My question on this is why wouldnt you select an open listing? And why have they ticked sole agency without giving us the option?

Q2. Relates to Advice about market price
it gives us 3 options
The client acknowledges in obtaining this appointment the agent.......
A.was not required by the client to give an opinion or supply material facts in respect to market price

B.was not required by the client to give an opinion in respect to the market price of the property but did supply a written statement of material facts for the client to take into account in deciding on a listing price for the property and such material facts are as detailed in the attached a)comparitive market analysis OR b)written explaination of the market value

C.HAS given the client an opinion about the market price of the property and supplied a written statement of material facts that the agent has taken into account in forming such an opinion and such material facts are as contained in the attached.

We had the agent give us an appraisal but i dont have anything in writing and they have left the section that asks for the quoted price at $0??

LAST question

Termination penalty apportionment
appointment agent 50% seller 50%

what the hell does this mean???

THANK YOU SO MUCH IN ADVANCE FOR READING THIS, ANY HELP IS APPRECIATED!

Firstly, look in to selling privately. Many thousands of vendor around the country have sold successfully privatley. Secondly, choose another agent, because you are having problems before you have even listed. It's likley to only get worse. And thirdly, don't sign a Sole Agency. Ever!

If the agent is competent and worth their salt then you wont want to go with another in the first place even if you do have that option available to you.

 

[wylie]

Why not PM Urban Cowboy from this site. He is extremely friendly and helpful and should be able to answer some of your questions.

And don't be scared of signing a sole agency, but maybe limit the time to six weeks so you are not locked in, and make sure you know exactly what you are signing and all the implications.... but you are obviously doing exactly that right now, so well done for not just blindly signing what is put in front of you.

 

[kooki]

Just realised your property is in another state to you, so selling privately probably isn't an option.

The reason you don't want to go for a sole agency is simply to keep your options open. I don't think signing multiple agents is very useful but having the option to do so if things go bad is very useful. An agent shouldn't feel the need to lock you in if they intend to do a great job for you. You are trusting them with your sale and they in turn should trust you to stick with them if they are doing a good job.

Best of luck!

 

[wylie]

I think you will find that unless you sign a sole agency, they won't bother trying too hard to sell your place, because any other agent could swoop in and sell it under their noses.

Many agents used to try to get a three month sole agency. That is way too long and if it is not selling, or you are not happy, you are locked in for that length of time. But a four week or six week sole agency will keep them on their toes, and if you are happy, there is nothing to stop you extending it. My thoughts anyway.

 

[kooki]

I think you will find that unless you sign a sole agency, they won't bother trying too hard to sell your place, because any other agent could swoop in and sell it under their noses.

Have you had some bad experience in that regard? Do tell...

Surely a good agent would never do such a thing! But if they did, who knows what else they might get up to, right? Better to have some control then and have the ability to move to a more ethical agent without being effectively off the market for the duration of a sole agency.

Any agent on this forum... would you not bother to sell a listing "hard" with an open agency agreement if you are the only one signed?

Ironic that I am now defending agents...

 

[wylie]

Have you had some bad experience in that regard? Do tell...

Not at all.

Surely a good agent would never do such a thing!

Why not. This is not a measure of a good agent. If there is no sole agency agreement, there is no sole agency. Any other agent could sell it. What is your problem with understanding that?

But if they did, who knows what else they might get up to, right?

[COLOR="Red"Not necessarily. No sole agency agreement means just that.... no sole agency agreement. Do you understand that?[/COLOR]

Better to have some control then and have the ability to move to a more ethical agent without being effectively off the market for the duration of a sole agency.

Any agent on this forum... would you not bother to sell a listing "hard" with an open agency agreement if you are the only one signed?

Ironic that I am now defending agents...

I would think that most agents would not sell a listing "hard" if there is the chance of them putting in days of work only to have another agent sell it. This is why open listings are not used much any more. If you don't trust your agent enough to give them your sale for a few weeks under a sole agency, why bother giving it to them at all?

 

[urban cowboy]

Hi everyone,

hubby and i are selling our 1st IP.

We are new to the selling process and have just received the paperwork from our chosen agent.

There are a few things on the paperwork i was hoping some of you experts could shed some light on?

Q1. The contract gives us the option of choosing an 'open listing' where we can appoint other agents at any time and also end the agents appointment at any time.
The other option is 'Sole agency and exclusive agency' which they have ticked already??? This states that the appointment is for a specified term up to 60 days. It also states if we are dissatisfied with the agents performance we have to pay damages for breach of contract?
My question on this is why wouldnt you select an open listing? And why have they ticked sole agency without giving us the option?

Sole and Exclusive are the two types of agency agreements that most agents will work under - no good agent will take an open listing unless it is something like a townhouse development that doesn't require open homes etc.

the example is that an owner gives an open listing to five agents - one agent works his tail off to sell it over several weeks costing him lots in time and money - the other agents put it on the net and do nothing!! By pure fluke, one of the other agents jags a buyer that puts a contract in on the spot... the hard working agent misses out!! no good hard working agent will take an open - only those desperate for listings and/or working in a specific field such as new developments off the plan in which case open listings are the norm!


The bit about compensation is simply this...

if you appoint agent A for a period of 60 days (maximum allowable by law) but say after 30 days you are unhappy with the agent and wish to appoint another one, you may...however if the new agent sells the property within the initial 60 day period, you will be up for two commissions. The better option would be to withdraw it from the market for a couple of weeks and wait until the 60 days is up - then re-list at a later time.



Q2. Relates to Advice about market price
it gives us 3 options
The client acknowledges in obtaining this appointment the agent.......
A.was not required by the client to give an opinion or supply material facts in respect to market price

B.was not required by the client to give an opinion in respect to the market price of the property but did supply a written statement of material facts for the client to take into account in deciding on a listing price for the property and such material facts are as detailed in the attached a)comparitive market analysis OR b)written explanation of the market value

C.HAS given the client an opinion about the market price of the property and supplied a written statement of material facts that the agent has taken into account in forming such an opinion and such material facts are as contained in the attached.

We had the agent give us an appraisal but i dont have anything in writing and they have left the section that asks for the quoted price at $0??

purely an ease of paperwork issue...if you tick yes, the form requires reems of paperwork to prove it - so most agents leave it blank. it actually makes it easier for you left blank as a full appraisal can have a couple of dozen pages of info - most of which is largely irrelevant.


LAST question

Termination penalty apportionment
appointment agent 50% seller 50%

what the hell does this mean???


Under Qld law - a buyer has a 5 day cooling off period in which they can withdraw the contract. HOWEVER, if they do withdraw under this condition, you can enforce a 0.25% (of contract price) penalty. This penalty is known as the termination penalty and most agents will ask to split the payment (is only a couple of hundred dollars) 50/50 with the vendor. You can most certainly change this to any percentage you like.

NB: this payment does not apply if the buyer withdraws under building/pest/finance or any other special condition.


THANK YOU SO MUCH IN ADVANCE FOR READING THIS, ANY HELP IS APPRECIATED!

Hope all this helps - feel free to ask me any questions - i will answer them as promptly as possible!!

 

[Perp]

I usually go for a 30- or 45- day sole agency. Open listings really are counter-productive (except in some specific circumstances as outlined).

The difference between a sole and exclusive agency is with regards to commission in the event of a private sale. If you happen to jag a private sale - eg a workmate hears your IP is for sale and says "hey, I wanted to buy an IP there" etc - then under an exclusive agency, you'd still have to pay commission to the agent. But under a sole agency, if you sell privately, no commission is payable.

It's unlikely (IMHO) that you'll sell privately, but it would be annoying to have to pay commission if it did happen. I'm sure the agent explained all this to you, since it's a legal requirement for them to do so before signing you up to an agency agreement. [Which surprised me, I don't recall an agent explaining this to me; I'm pretty sure I had to research it myself.]

 

[marg4000]

We always choose a sole agency, not an exclusive agency - as Tracey said, it is unlikely that we find a buyer but then again one never knows. We have found that agents tend to tick the exclusive box, but are happy to change it when we say we want the sole agency. (This is in Queensland.)

We always go for an initial 30 or 45 day listing, this can always be extended but you are stuck if you agree to a longer period in case the agent you choose does not live up to his/her promises. This happened to hubby's parents, agent said all the right things, promised excellent service but once he had their signature on a three month sole agency did absolutely NOTHING. Obviously hoping that some other agent would have a buyer and offer to share the commission.

Please ask the agent to explain anything you don't understand BEFORE you sign any agreement.
Marg