A written agency agreement must be prepared for all services to be performed by an agent for a client (principal), unless the services relate only to livestock.
It is important to ensure the agreement is prepared, signed and served correctly – or you may lose your entitlement to be paid commission and recoup expenses.
An agent is not entitled to any commission or expenses for services performed for a client unless:
- a written agency agreement has been entered into for the services
- the agreement was signed by the licensee and the client
- the agreement contains the terms required by the regulations and
- within 48 hours after the client signs the agreement, a copy of the agreement signed by the licensee is served on the client (in limited circumstances, a court or tribunal can wholly or partly award commission to the agent if the signed copy of the agreement was not correctly served (see section 55 of the Act)).
If the agency agreement relates to residential property or rural land, it must contain a statement identifying the source and estimated amount of all rebates, discounts and commissions that the licensee will or may receive in respect of the expenses payable by the client under the agreement (see section 57 of the Act). An agent is not entitled to any expenses from the client if these disclosures are not made.
If the agreement is for the sale of residential property, the client must be given a copy of the consumer fact sheet Agency agreements. The fact sheet can be given to the client up to one month before the agreement is signed (see section 56 of the Act).
If the agreement is for the sale of residential property or rural land, the client has a cooling-off period of one business day or Saturday. During the cooling-off period, the client can cancel the agreement by giving you written notice.
Serving a copy of the agreement
The copy can be served by:
- delivering it personally to the client
- leaving it at the client’s place of residence, or at an address provided in the agency agreement as the person’s address for service, with a person who apparently resides there and has apparently reached the age of 16 years
- posting it to the client at their residential address or postal address as disclosed in the agency agreement or an address provided in the agency agreement as the person’s address for service
- faxing it to the client at a facsimile number provided by the client.
If the client is a body corporate, the copy of the agreement can be served by:
- delivering it personally to the secretary of the body corporate or any other person concerned in the management of the body corporate
- leaving it at the body corporate’s principal place of business with a person who is apparently employed there and who has apparently reached the age of 16 years
- posting it to the body corporate at the address of its principal place of business or postal address, as disclosed in the agency agreement.
An agency agreement must:
- include a written agency agreement
- contain terms required by the regulations
- be signed by agent and client
- be a fully signed copy and be served on the client within 48 hours of the client having signed it
- disclose all rebates, discounts and commissions which will or may be received by the agent in relation to expenses payable by the client under the agreement (relating to residential property or rural land)
- ensure that a copy of consumer fact sheet Agency agreements is given to client (if agreement is for sale of residential property or rural land).
Terms required by the regulations
The Property, Stock and Business Agents Regulation 2003 prescribes the terms which must be included in agency agreements. You can look at clauses 12 and 13 and Schedules 7 to 14 of the Regulation, or click on the relevant link below to see the terms required to be included in the type of agreement you wish to know about. Agency agreements can also contain additional terms that are not inconsistent with the Act and Regulation or with the required terms.
Agency agreement terms for: