When it comes to selling a property, one of the most important agreements you will encounter is the property sale commission agreement. This agreement outlines the terms and conditions of the commission payable to your real estate agent in exchange for their services in selling your property. In this article, we will discuss the key elements of a property sale commission agreement and how it affects both the seller and the real estate agent.
Firstly, it is important to understand that the commission payable to the real estate agent is negotiable. Typically, the commission is a percentage of the sale price of the property and can range from 2% to 5%. As a seller, it is important to negotiate the commission rate with your real estate agent before signing the agreement. It is also important to understand that the commission is usually split between the listing agent and the buyer’s agent, so make sure you factor this into your negotiations.
The property sale commission agreement should also outline the services that the real estate agent will provide. This includes listing the property for sale, marketing and advertising the property, conducting open houses and private showings, and negotiating with potential buyers. Make sure that the agreement specifies the timeline for these services and any additional fees that may be incurred, such as the cost of professional photography or staging.
Another important element of the property sale commission agreement is the exclusivity clause. This clause states that only the real estate agent listed in the agreement is authorized to sell the property for a specified period of time. This means that you cannot list the property with another agent or sell it yourself during this time. However, if the property does not sell within the specified time, you may opt to terminate the agreement and list the property with another agent.
It is also important to understand the consequences of breaching the agreement. If you decide to sell the property without the real estate agent’s involvement during the exclusivity period, you may be liable to pay the commission anyway. This is because the agent has already put in the time and effort to market and advertise the property, and may have even introduced potential buyers to the property.
In conclusion, the property sale commission agreement is a critical document that outlines the terms and conditions of the commission payable to your real estate agent. As a seller, it is important to negotiate the commission rate and understand the services that the agent will provide. You should also pay attention to the exclusivity clause and be aware of the consequences of breaching the agreement. By doing so, you can ensure a smooth and successful sale of your property.