It is effectively an exclusive agency agreement in which the property is auctioned. The agency contract becomes mandatory when the contracting entity (i.e.: You as the owner/seller of the property or someone who acts legally for you) and the agent have signed it. There is then a one-day cooling-off period during which you can terminate (or “revoke”) the contract. Saturday is included for the purposes of the cooling-off period, but not on public holidays. For example, on Thursday morning, the agent will give you a copy of the unsigned contract and the card that you read and examine carefully. On Friday afternoon, you sign the agency contract and the waiver form. The agency agreement becomes immediately mandatory and the agent can be made in exchange for the sale of your home. Exclusive agency contracts are often used for the sale of residential real estate. In such an agreement, you give an agent exclusive rights to sell your property.
This may give the broker the right to pay a commission if the property is sold during the fixed term of the contract, even if the property is sold by you or another agent. The broker may also be entitled to a commission if the property is later sold to a person who trades with the original agent. The agent cannot charge you any fees or fees related to an agreement that has been duly revoked. All the money you have already paid to the agent must be refunded to you. Before you can market your property, the broker must sign a contract with you called an agency contract. An agency contract is a legally binding contract and it is important that you read and understand it. If you are unsure of the terms of the contract, you should seek legal advice. The broker may ask you to pay for advertising, auction fees, cleaning, decoration or landscaping, if stipulated in the agreement.
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. A single agency agreement looks like an exclusive agency agreement. You give a broker the rights to sell the property, but you can find a buyer yourself. If you find a buyer who has not been introduced by the agent, there is no commission to pay to the agent.