Risk of double commission Victoria

Discussion in 'Legal Issues' started by Tillie, 17th May, 2015.

  1. Tillie

    Tillie Member

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    Legal Eagles, question for you about the risk of double commission if changing agents.

    Normal REIV (in Victoria) exclusive sale authority contract states the following:

    'The vendor agrees to pay the Agent commission on the terms of this Authority if the property is sold:

    1.1 during the exclusive authority period by the agent or any other person or
    1.2 during the continuing authority period by the agent or
    1.3 to a person introduced to the Property by the Agent before the Vendor sign this Authority
    1.4 within 120 days after the expiration of the exclusive authority period to a person introduced to the property by the Agent within exclusive authority period and whom as a result of introduction the property is sold.

    The commission is due and payable by the vendor on the property being sold.

    items 1.2 and 1.3 and 1.4 will not apply if the Vendor may incur a liability to pay an agent a commission under an exclusive agency agreement signed by the vendor with another agent after the expiration of exclusive authority period.'

    I have read somewhere else in the forum that if the property is sold to a purchaser that the first agent introduced to the property, there is a risk that a vendor needs to pay double commission, one for the first agent and one for the second one.

    But when reading the above I got confused.:confused: It sounds like that if a vendor signs the exclusive authority with a second agent after an exclusive contract with the first agent has expired, vendor can avoid double commission and the first agent gets nothing. It does not sound fair or have I completely misunderstood it? :eek:

    What about in other states? Is there something similar in agency contracts?