Greg: Yes, of course, the other thing is that we know that with an agency contract, there is a cooling phase. And the cooling phase doesn`t stop until all parties sign up. So if you have three principles, and only two characters, if a third signs two weeks later, then you can exercise the cooling time. That, of course, is what we want to avoid. Greg: That`s right. Other common mistakes, I`ve seen agents not paying for marketing fees. So they put a line in the field of marketing. It`s a mandatory term. A blow from marketing can therefore invalidate the agency agreement.
In the past, the courts have adopted a strict interpretation of agency agreements and, simply by forgetting to seize the details of the seller`s lawyer, the agency agreement invalid. Today, there has been some relief introduced by fair trade through some changes in the legislation, known as Section 55a. And what is happening here is that a court now has the power to miss out on a small error in an agency contract. If, in paying the commission, it was still fair and reasonable and not unfair. A single agency agreement looks like an exclusive agency agreement. You give a broker the rights to sell the property, but you can find a buyer yourself. If you find a buyer who has not been introduced by the agent, there is no commission to pay to the agent. If you decide to terminate (or revoke) the agreement during the cooling-off period, you must send a “notice of resignation” to the agent. The agency agreement must indicate the estimated amounts or amounts of these commissions or discounted on these services.
You can negotiate with the agent to find out if you need to pay the full amount. This happens when you are dealing with an agent who is part of a network of agents working together to sell your home. It applies to both auctions and private contracts. You pay a commission to the agent you signed up for. You have the right to negotiate the terms of the contract and to demand changes authorized by law. Changes to the agreement must be signed by all parties, unless the agent reviews the estimated sale price of your property. The cooling-off period gives you time to read the agreement, consider the conditions you have agreed to, including the agent`s expenses, and get independent advice if you have any doubts. The cooling-off period can only be cancelled if the agent has provided you with the following documents at least one business day before signing the agency contract: Greg: That`s right. Yes, yes.
Other common errors we see are that the licensee is not properly described, so the licensee is normally the company for which the agent works, not the licensee. This should therefore be a proprietary limit, often the wrong license number is inserted, because it is the person`s license number and not the company`s license number. Other errors that we frequently see is that the agent did not give in detail which lawyer could act on behalf of the seller, which may be the recommended form of the sale, quite often the inspection report is not signed and dated. The agent may not have completed what the market`s opinion of the sale price is. I have even seen agency agreements that have left the commission area empty. This will of course be a pro bono sale. The agency agreement can be concluded either for an indeterminate period or for a fixed term (“fixed term”). If you want to terminate the contract, you must report it in writing. Check your consent to see how much notification you need to give. You can waive your right to a cooling-off period or waive it by signing a separate waiver form when the agreement is signed.
Greg: Yes, yes. Well, there are a lot of things that go into an agency agreement, and probably one of the simplest tips is not to leave anything empty. Now, the most common mistakes we see are that not all principles names have entered properly.