Why Is It Important That Potential Vendors Understand Agency Agreements

Before, I signed a brokerage contract with Agent A and Agent A who presented me with a property. The property was then purchased by my wife/child/parent/brother and sister through Agent B. Can Agent A ask me for a commission? An estate agency contract is a legally binding document. Both parties should comply as soon as they have signed it. In accordance with the agreement of the real estate agency, you are required to pay a commission to the real estate agent if “your spouse, candidate or client or broker not mentioned” enters into a sales contract with the seller during the term of the contract. In other words, if the buyer is your child, parent or brother, you should pay a commission if he is your undisclosed candidate, client or agent. The cooling-off period begins when you sign the contract and ends at 17:00 on the business day or the following Saturday. For example, if you sign the agreement on a Friday, the cooling-off period will end on Saturday at 5 p.m. When you register on Saturday, the cooling-off period usually ends on Monday at 5:00 p.m., unless it is a public holiday, in which case it ends on Tuesday at 5 p.m. The form must indicate the estimated amount of the rebate, discount or commission as well as its source, or that the agent does not receive discounts, commissions or rebates. Agencies can work under a single agreement or they have a permanent relationship that allows access to each other`s lists.

For both agreements, the advertiser must communicate the agreements in writing to the seller in order to avoid any misunderstanding. The rules should include: Are there provisions for the validity of the appointment of an agent? Could it be less than three months? As a buyer, if I am not satisfied with the performance of real estate agent A, can I unilaterally reduce the validity period and acquire the property presented to me by real estate agent A via another brokerage agency? If you are not satisfied with the services of an agent, it is important to terminate your contract with them correctly before registering with another agent. Otherwise, both agents can charge you a commission if the property is sold. It is effectively an exclusive agency agreement in which the property is auctioned. If an agency contract expires, there may be a breastfeeding period. During this period, if you sell your property to someone that the agent has entered into your property, you may be charged commissions by the agency. It is defined in Appendix 5 of the Estate Agency Agreement for Purchase of Residential Properties of Hong Kong (Form4), that “the buyer is also required to pay the broker a commission on the services provided in connection with the property concerned when the buyer or a spouse, captain or buyer`s representative enters into a binding agreement with the seller on the sale and purchase of one or more properties during the period of validity.” In other words, even if you buy the property directly from the owner, as long as the purchase is made during the term of the contract, you are legally required to pay commissions to your real estate agent.