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Home › Sell Property › Agency Agreements: A 2025 Guide
Thinking of selling with a real estate agent? Before any photos, opens or buyer calls, you’ll be asked to sign an agency agreement. This document sets the ground rules: what your agent will do, how long they have the job, what it costs, and when commission is payable. Getting it right can lift your sale price, shorten your campaign and protect you from nasty surprises.
Key Takeaways An agency agreement is a binding contract between you (the seller) and the agent. Read it line-by-line and only sign what you understand. Agreement types matter. Exclusive/sole = one agent has the right to sell; open/general = multiple agents compete. Many terms are negotiable: duration, commission, marketing (VPA), termination/notice and any “protection period”. Rules differ by state. For example, NSW sellers get a one business day cooling-off on sales agency agreements; Victoria has no cooling-off for the sales authority; QLD has strict rules on Form 6 appointments and exclusive/sole durations. Compare agents, compare agreements. Use the fee calculator and ask for a contract that motivates performance (e.g., tiered commission above target price).
Key Takeaways
An agency agreement is a legally binding contract between you (the vendor) and the real estate agent. It includes your details, the agent’s details and the property details. It also details what the vendor and agent have agreed. This includes:
Everything in the agreement is legally binding, so it pays to make sure you fully understand what you are signing. If you don’t, you should ask a lawyer to review your agreement.
Agency agreements vary depending on which state you are selling in. Here is a state-by-state breakdown of agency agreements in Australia.
NSW has five types of agency agreements, including:
Each agreement has a different purpose and differences in how commission is paid. The table below highlights these differences. Many of these differences apply to agreements in other states.
TIP If you sign an exclusive agency agreement that subsequently expires, you may still need to pay commission to that agent if your buyer started the process with them during the contract period.
TIP
If you sign an exclusive agency agreement that subsequently expires, you may still need to pay commission to that agent if your buyer started the process with them during the contract period.
Similar to NSW, QLD allows you to choose between an exclusive, sole, auction or open agreement.
In Victoria, vendors and agents sign an exclusive, general or auction sales authority. A general sales authority allows you to sign up to more than one agent and only pay commission to the agent that sells the property.
Almost all properties in SA are sold using sales agency agreements. You must pay commission even when there is no sale.
Vendors sign up with an agent in WA using a selling agency agreement. You can choose an exclusive, non-exclusive or authority to auction agreement.
The NT does not have a standard agreement. Usually, vendors sign exclusively with one agent and must pay commission even when the agent does not find a buyer.
Tasmania mostly uses exclusive and open agency agreements. In exclusive agreements, commission is payable even when the property is not sold.
The ACT uses exclusive and general sales agreements. An exclusive agreement gives one agent the right to sell your property, whereas a general one allows you to list with multiple agents.
There are pros and cons to both open and exclusive agreements, so it’s a good idea to consider which is right for you. Open listings can be tempting because you will have many agents trying to sell your home, plus you can avoid paying commission if you find the buyer yourself. However, agents may be discouraged by the additional competition and not prioritise the sale of your property under an open agreement.
Usually, agents selling under an exclusive agreement will prioritise your property and work harder for you. Many agents will only accept exclusive or non-open agreements, so choosing an open listing agreement will seriously narrow your list of potential agents.
Read more about the differences here before choosing your preferred option.
Absolutely. If it doesn’t suit you, negotiate or pick another agent. A motivated, confident agent will discuss changes openly.
Common negotiables
An agent who is willing to offer you a favourable agency agreement will work harder to sell your property for you.
Once you know what to look for, you can easily find the clauses in your agency agreement that benefit the agent, rather than you. Here are some clauses that you may choose to negotiate or omit completely.
The commission, fees and expenses are all negotiable and may vary between agents. Before you choose an agent and sign an agency agreement, it’s a good idea to compare agents’ costs. You can ask for a hard copy of their costs to allow you to more easily compare. You can also use this information to negotiate a better deal with your preferred agent.
In NSW, you have one business day after signing an agency agreement to change your mind. This is the typical cooling off period. Once this has passed, your agreement is legally binding. If you decide to cancel the agreement within this period, you must inform the agent in writing.
Agency agreements in other states and territories do not offer a cooling off period, so it is vital to review the agreement before you sign.
Before you sign an agency agreement, you and the agent will agree on the agreement duration. If you choose to end the agreement before this period has passed, you need to put it in writing to your agent. This is only possible if there is a termination clause in your agency agreement, so be sure to check this before signing.
Quite often, an exclusive agreement means you will be locked in to your chosen agent until the agreement duration has ended. This can prove challenging when there are serious disagreements over the sale of your property. This is all the more reason to choose your agent carefully.
It’s clear that not all agency agreements are created equally. If you are ready to negotiate, these tips will ensure you get the agent working in your best interests.
Agency agreements that include terms and conditions that benefit the agent can end up being expensive for you. For example, if you have a 12-month agreement that includes partial commission for the agent if your property doesn’t sell, your agent may not work very hard to sell your property. You may then be out of pocket, even without a sale.
It is not only important to negotiate a favourable agency agreement but also to find a trustworthy, reliable and hard-working agent. Not all agents will offer unfavourable agency agreements. Find a quality agent now and start negotiating your ideal agency agreement.
Depends on where you live. NSW sellers get 1 business day on sales agency agreements; VIC has no cooling-off for the sales authority; other states vary. Always check your state rules.
Match to market conditions (e.g., 45–60 days in a fast market, up to 90 in slower conditions), and respect state caps—e.g., SA max 90 days for residential land agency agreements.
Yes. Most terms are negotiable, including commission structure (fixed or tiered) and vendor-paid advertising (VPA). Use a calculator to compare offers.
Under an exclusive authority, usually yes. Under a sole agency, you may not depending on the state and contract wording. Confirm before you sign.
A window after the agreement ends where commission may still be payable if a buyer introduced during the term purchases. Keep it short and limited to named buyers in your agreement.
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