Exclusive Sale Agreement

Discussion in 'The Buying & Selling Process' started by lostincable, 24th May, 2018.

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  1. lostincable

    lostincable Member

    Joined:
    18th Dec, 2017
    Posts:
    21
    Location:
    Sydney
    Hi everybody

    Just reviewing an agency agreement

    The below seems pretty standard as it surrounds the srller backing out

    But the third bullet point implies commission is payable if we the buyer pull out of the contract owing to purchaser default.

    Am I reading that right and what is the correct way to have it amended as it is in the terms and conditions which is an attachment.

    ---------------
    • immediately upon completion of the sale of the Property; or
    • upon the Principal and the Purchaser entering into a mutual agreement (whether written or verbal) to terminate or rescind the contract or otherwise not proceed with the sale; or
    • if the sale is not completed owing to the default of the Principal after the parties have entered into a binding contract; or
    • upon the termination of the contract by the Principal as a result of the default of the Purchaser and the commission is the same or less than the amount of the deposit which is forfeited to the Principal.
    WARNING: The term immediately above provides that a commission is payable under this agreement even if the sale of the property is not completed.
     
    Last edited: 24th May, 2018
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,094
    Location:
    Sydney or NSW or Australia
    Basically, if the deal falls over, the vendor is still liable for the commission - their job is to find a buyer who signs and is able to complete ie unconditional contract.

    If buyer defaults, then the agent is allowed commission up to the deposit held.