Changing real estate agent

Hi everybody

A question on how to go about changing real estate agents in Qld. We've been dealing with an agent (Agent A) who has been trying to sell a property for us (appointed as Exclusive Agency). The property has some challenges, so we expected it could be a difficult one to off load. Agent A has made some progress with a potential purchaser (Purchaser 1), but no sale yet and their appointment has now lapsed to be an open listing.

Another agent (Agent B) has approached us with some new ideas about who the property could appeal to and how it could be marketed. Agent B wants us to sign him up as an Exclusive Agency.

We are happy to do this except if Agent B is successful in securing a contract from Purchaser 1.

Any advice on how to document this using the standard Form 6?

Thank you!

 

Tell agent B that they can have an open listing - you know that it is going to be a hard slog, so whay makes you think that this bod will be able to move it any quicker (exclusive or open)?

 

From my understanding (in NSW) you could exclude the buyer (Purchaser 1) from the exclusive agreement. They were introduced by Agent A and he should be entitled to a commission for this. Also be careful with other agents making grand claims saying they will get a result for you. Talk is cheap. Have you sat down with your current agent and had a frank discussion with them about the property and what you can do moving forward. There was a reason you went with this agent in the first place and if he is doing a good job on a hard property it may be worth sticking it out with them.

 

Thanks Scott and Mick.

The property is a development site that was impacted by the 2011 floods. It needs a bit of creativity to see the value in it. Agent A had some good ideas, Agent B has come at it from a different angle (brought some more town planning knowledge about what is possible on the site)

Agent B is proposing a more extensive marketing/PR campaign to prompt these new purchasers into action, but it is possible that it will prompt Purchaser 1 into action as well. (Agent A's approach has been to approach potential purchasers directly rather than advertise.)

Agent B is reluctant to hit go on the marketing campaign without having an exclusive listing, but if a it does end up selling to Purchaser 1, then we do want Agent A to get the commission.

Will sign the appointment form for Agent B as an open listing in the interim.

Cheers

 

Yep, agent A would still be entitled to comms as they found purchaser 1.

If agent B claims to have buyers in the wings then do an exclusuve listing (48 hours) and see what they can produce?

 

Actually, its about effective cause of sale, and unless he has had purchaser 1 put forward an offer on a signed contract I doubt agent A would have any claim at all. Even then he may not. @Christina46 you can easily nominate purchaser 1 as an excluded party on the form 6 but I can understand where agent b is coming from in that his marketing might be the "effective cause of sale" that puts the pressure on purchaser 1 to move forward.

 

Is there provision to nominate Purchaser 1 as an excluded party somewhere on the form or do I need to add an annexure or something similar?

 

Yes Christina, on page 2 , section 4 "Instructions/Conditions" I would add something along the lines of:

The agent acknowledges and agrees that if the property is purchased by ..................... and or any associated entity, the agent will not be entitled too, or make any claim for commission and the terms and conditions of this appointment to act will not apply.

probably worth running the wording past a solicitor

 

Thanks - bang on what I was after.