Before you sign
Real estate agency agreements in NZ
Understand sole and general agency agreements, commission terms, marketing authority, duration and exit questions before signing in New Zealand.
Do not sign until the services, term, commission trigger, marketing authority and exit position are clear in writing and you have obtained advice where needed.
01
Sole and general agency change who can act
A sole or exclusive agreement appoints one agency for the agreed period. A general agreement can allow more than one agency and private marketing, but the exact commission and introduction provisions still matter.
| Question | Sole / exclusive agency | General agency |
|---|---|---|
| Who may market | The appointed agency has exclusive authority for the agreed period | More than one agency may be appointed, subject to each agreement |
| Private sale | Commission may still be payable if you sell privately during the term | Private sale may be possible, but check introduction and commission clauses |
| Main risk | Overlapping another agreement can create double-commission exposure | Unclear buyer introduction records can create a commission dispute |
| Control to record | Term, cancellation and withdrawal position | How agencies record introductions and who earns commission |
02
Make the full price of the agreement visible
Before signing, obtain the commission calculation, estimated commission, GST, administration/minimum charges, marketing authority and payment timing in writing.
- What event makes commission payable?
- Does a minimum override the percentage?
- Who pays approved marketing if no sale occurs?
- Are auction, portals, photography or withdrawal costs separate?
- How must any negotiated discount be recorded?
03
Check dates, cancellation and continuing entitlement
Read the start and end dates, notice and cancellation provisions, and any clause that may preserve commission rights for a buyer introduced during the agreement. Do not assume the obligation disappears on the end date.
04
Control marketing authority
The agreement or campaign schedule should say what will be purchased, what is included in the agency service, who approves changes and when invoices are due. Keep later approvals in writing.
05
Do not create overlapping authority
Signing more than one incompatible agreement can expose a seller to more than one commission. Tell a proposed agent about any current or recently ended agreement and obtain legal advice before creating overlap.
06
Keep the final signed record
Agency agreements are legally binding. Read changes, initial or sign agreed amendments, retain the complete signed version and obtain independent legal advice if the effect is unclear.