Thoughts on signing exclusive agent for selling property

Discussion in 'The Buying & Selling Process' started by Kerri S, 18th Feb, 2020.

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  1. Kerri S

    Kerri S Member

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    I have industrial land with a DA on the Sunshine Coast but requires a road upgrade which was a road block for us due to cost and out of our development depth. Previously tried to sell in 2018 signed exclusive agent paid lots of dollars for all the ads, nearly sold but long story short did not. Basically have not heard from agent once the deal didn't go through. I want it gone so I can use the money on useful property. I have finally convinced my husband to sell again and noticed it is still for sale under the same agent 18 months later. Have contacted another agent to list and they want to do the same exclusive agent and TBA on agreed advertising fees in contract. Seems unless you go exclusive they aren't interested so what are your thoughts on contract terms or other ideas to move this on?
     
  2. FredBear

    FredBear Well-Known Member

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    Better check the fine print of your existing exclusive agent agreement. I've seen ones (in NSW) where the agreement continues indefinitely beyond 90 days unless you specifically terminate it in writing with 30 days notice. So it may be the agent is still entitled to be selling and collecting the commission even 18 months later.
     
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  3. Kerri S

    Kerri S Member

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    That's interesting. From memory it was 90 days then open listing, wouldn't even know where that agreement is but have emailed and delisted.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    I'd send termination notice if you hadn't done so already.

    Get a specialist commercial agent on board. Possibly One of the big guys like CBRE or JLL

    Marketing only on the web no hard copy except for the A4's if required for meetings.

    Limit the agreement to 90 days again.
     
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  5. Marg4000

    Marg4000 Well-Known Member

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    We always list “sole” agency, never exclusive.
    Never had an agent refuse.
    They have sole rights to sell the property (and always have).
    But if some family disaster had occurred and we had to withdraw the listing, we would not have paid commission. Under an “exclusive” listing we would have had to pay.
    Haven’t sold anything for years, so things may have changed. Or may differ between states.
     
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  6. chunho01

    chunho01 Well-Known Member

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    Is sole agency contract available in Victoria? On consumer affairs Victoria website, only exclusive authority and general authority are listed: Selling property with or without an agent

    Can someone from Vic share some thoughts?
     
  7. kierank

    kierank Well-Known Member

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    Same here (in Queensland).

    The reason being is that if you (the seller) find the buyer (eg family member, acquaintance, ...) and the agreement is exclusive, then commission is still payable; if it is sole, then it is not.
     
    Last edited: 23rd Feb, 2020
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  8. Kerri S

    Kerri S Member

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    Thanks was wondering what the difference was between sole and exclusive agent.
     
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  9. FredBear

    FredBear Well-Known Member

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    Anyone had a "Sole Agency" agreement recently in NSW? So far agents have only offered "Exclusive".
     
  10. Shady

    Shady Well-Known Member

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    Never done one, Done plenty of exclusives and a few open listings but never a sole agency. I've done an open agency and a handshake that no other agent will get the property which is pretty much the same as a sole agency.

    Sorry but this isn't correct, You can withdraw the listing regardless of the agency type and will not be liable for commission.

    ^^^^^ What he said.
     
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  11. Alex Pushkin

    Alex Pushkin Member

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    The reason agents want exclusive/sole agency is the same reason you either did or didn't like group work in school.

    If you're good and the others in your group are good, you have nothing to worry about; if you're good and the others in the group are lazy, you'll end up doing all the work and get half the credit - or in this case, money.

    In the case of the agent - the one you sign up first may be good and he wants the sole/exclusive agency (in NSW its only exclusive so Im using it interchangeably - although someone above has made a strong point not to). However, the next agent you might sign could be sloppy with his words, etc. Some savvy buyers will pick up that its a joint agency and schedule two inspections with the agents; the good agent might just say "this is a great opportunity, Im getting loads of enquiries" and that might lead the buyer to think an offer would be good around the asking price whereas the other agent might say (even on the phone) "Oh yes, I know the one you're calling about, the one that's been on the market for 2 years! Yeah I'll show you it, the wife wants it gone" and that might lead the buyer to think that they can lowball it. To expect the agents to be on their tip toes with communicating with each other about buyers and appointments is not realistic unless you get two guns in which case having that knowledge that there are two inspections will lead to a better offer. But overall, pick one agent that's good and stick to them - unless they say the exact same thing at all times, which they won't, a savvy buyer will get a better deal and you won't.
     
  12. FredBear

    FredBear Well-Known Member

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    No, In NSW Exclusive and Sole agency agreements both exist and are different:

    Agency agreements

    Exclusive Agency Agreement

    Exclusive agency agreements are commonly used for the sale of residential property. In this kind of agreement, you give exclusive rights to one agent to sell your property. This may entitle the agent to be paid commission if the property is sold during the fixed term of the agreement, even if the property is sold by you or by another agent. The agent may also be entitled to commission if the property later sells to a person who started negotiating for the property with the original agent.

    Sole Agency Agreement

    A sole agency agreement is similar to an exclusive agency agreement. You give rights to one agent to sell the property but you may find a buyer yourself. If you find a buyer who has not been introduced by the agent, then no commission is payable to the agent.
     

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