When selling property in Australia, you typically sign an agency agreement with a real estate agent or agency. This agreement outlines the commission the agent will earn (typically 1-3%), whether the listing is exclusive to that agent, how long the agreement lasts, and when you can terminate. Many agents lock sellers into exclusive listings for 90+ days, charge commission even if you sell privately, and include terms that make it difficult to switch agents mid-campaign. Each state has different legislation governing real estate agreements, and the fine print can be punitive. Before signing, you need to understand the agent's exact commission, whether you're locked in, what happens if you sell privately, and how easily you can terminate if you're unsatisfied.
What is a Agent commission and exclusive listing terms?
A real estate agency agreement is a contract between a seller and an agent or agency for the agent to market and sell your property. It specifies the commission percentage, listing type (exclusive, open, or sole), duration, termination terms, and when commission is payable. Commission is typically payable when the property sells, but the contract may obligate you to pay even if you sell privately.
Red flags to watch for
If the agreement is exclusive (you cannot use other agents) and has no termination option, you're locked in. Most states allow termination only if the agent breaches. If you want out but the agent isn't performing, you may be stuck.
Some agreements claim commission even if you sell privately (without the agent's help). This is common in exclusive agreements but can be excessive. Check if commission applies to private sales.
Exclusive agreements lasting 90-180+ days are common but restrictive. Before signing, ensure you can terminate early if unhappy with the agent's performance.
If the commission percentage isn't fixed in writing, the agent could claim a higher percentage later. Always agree on commission upfront and in writing.
If the agent has complete discretion to list the property with photos, description, or price without your input, you have limited control over how your property is marketed.
Some agreements don't require agents to report on viewings, marketing spend, or buyer interest. Without this, you won't know if the agent is actively marketing your property.
Broad liability disclaimers are often unenforceable, but their presence suggests the agent may not take responsibility for errors or omissions.
Your legal rights
In Australia, each state has legislation governing real estate agents. NSW: Real Estate Agents and Motor Dealers Act 2002. VIC: Estate Agents Act 1980. QLD: Property Agents and Motor Dealers Act 2000. All require written agreements, clear commission disclosure, and fair dealing. Agents must hold money in trust and provide accounts. If an exclusive agreement is unreasonable or breached by the agent, courts can order termination or reduce commission. The Australian Consumer Law applies—unconscionable conduct or misleading representations can make agreements unenforceable.
Questions to ask before you sign
- 1Is this an exclusive, sole, or open agency agreement, and what does that mean for me?
- 2What is the exact commission percentage, and when is it payable?
- 3If I sell the property privately without your involvement, do I still owe commission?
- 4How long does the agreement last, and can I terminate early if I'm unsatisfied?
- 5What marketing will you provide, and how often will you update me on viewings and interest?
- 6If a property doesn't sell within the agreement period, what happens—does the agreement automatically renew?
- 7What happens if I terminate the agreement—do I have any ongoing obligations?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.