Brian Cannan: Today I have with me Greg Jemmeson of Jemmeson Fisher Solicitors and Accountants. And we`re going to talk about agency agreements. Greg, how important are agency contracts? (a) the services were carried out as part of a written agreement (agency agreement) signed by the client and the agent; and the agent should be required to transfer all of the investor`s money into a fiduciary account and to maintain good accounts that properly document the Agency`s revenues and expenses. Appropriate access to these accounts should be given to the awarding entity. Unless there is an agreement to the contrary or an emergency, an officer must carry out the agency in person and cannot delegate his work to another person. In other words, if the agent is authorized to appoint sub-agents, this should be clarified in the agency agreement. (a) the inability of the licensed agent to provide a copy of the agency agreement to the client within 48 hours, either unintentionally or caused by something beyond the control of the representative; and that an agent treats all information provided by the client in a confidential and strictly confidential manner. Even after the end of the agency relationship, an agent is not allowed to use confidential information obtained under the Agency in competition with the client or to the detriment of the client. 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. So they don`t put initials, but they have to load the parts with full names.
Note If a form is approved at point 177 for an agreement, the form must be used. Greg Jemmeson: Thanks to Brian, really the most important thing in an agency contract is a real estate agent is not allowed to pay a commission, unless they have a valid agency agreement in effect. Well, basically, the Property Stock and Business Agency Act sets out requirements that if there is no written agreement, it must be signed by both the licensee and the client, it must abide by all the rules. And if the agent signs, then the agency`s agreement must be served on principle within 48 hours. 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. 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. (c) the agency agreement complies with the rules; and the contract should determine the circumstances under which the client or agent is able to terminate the agency relationship, including what happens if you wish to leave the agent. Greg: To be the salesman.
Yes, yes. And the other condition is that if the agent does not have an agency agreement and sells a person`s house, he can be sued by the Office of Fair Trading.