Cancelling a Sole Agency Agreement in New Zealand: What You Need to Know
If you find yourself in the situation where you need to cancel a sole agency agreement in New Zealand, it’s important to understand the process and your rights as a property owner. Here’s what you need to know.
What is a Sole Agency Agreement?
A sole agency agreement is a contract between a property owner and a real estate agent. It gives the agent exclusive rights to sell the property for a specified period, usually 90 days or more. This means that the owner cannot use another agent during this time, and if the property is sold during the agreement period, the agent is entitled to the commission.
Reasons for Cancelling a Sole Agency Agreement
There are several reasons why a property owner may want to cancel a sole agency agreement, including:
1. The agent is not performing well, and the property has not received much interest or viewings.
2. The owner is unhappy with the agent’s communication or marketing efforts.
3. The property owner has changed their mind about selling.
4. The owner has found another agent who they believe will do a better job.
How to Cancel a Sole Agency Agreement
To cancel a sole agency agreement, the property owner must give written notice to the agent. The notice should include the reason for cancellation and the date it will come into effect. The agreement will usually state how much notice is required, so be sure to check this before sending the notice.
If the agent has found a buyer during the agreement period, they may be entitled to the commission even if the sale is completed after the agreement has been cancelled. This will depend on the terms of the agreement and whether the buyer was introduced to the property during the agreement period.
If the agent has not found a buyer during the agreement period, they should not be entitled to any commission.
What to Consider Before Cancelling a Sole Agency Agreement
Before cancelling a sole agency agreement, consider the following:
1. Have you given the agent enough time to sell the property? If it’s only been a few weeks or so, it may not be enough time for the agent to generate interest and viewings.
2. Have you communicated your concerns to the agent? It’s important to give the agent a chance to address any issues before cancelling the agreement.
3. Have you found another agent? If you cancel the agreement without having another agent lined up, you may be left without any representation.
In Conclusion:
Cancelling a sole agency agreement in New Zealand is possible, but it’s important to understand the process and your rights as a property owner. Make sure you give written notice, check the terms of the agreement, and consider your reasons carefully before making any decisions. With the right approach, you can find a new agent who will help you sell your property successfully.
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