As a resident of New South Wales (NSW), it is important to understand the legal agreements involved in hiring a real estate agency to sell or manage your property. The real estate agency agreement, commonly known as the REAA, is a legal document that outlines the terms and conditions of your agreement with the agency.
In NSW, the REAA is governed by the Conveyancing Act 1919 and the Property Stock and Business Agents Act 2002. These laws ensure that the agreement is fair and transparent for both parties involved.
The REAA should be read thoroughly and signed by both the property owner and the real estate agency. It should outline the commission fee the agency will receive for their services. The commission is usually a percentage of the sale price of the property or a percentage of the rental income if the agency is managing the property.
Other important details that should be included in the REAA are:
– The duration of the agreement
– The marketing plan for the property
– The responsibilities of the agency
– The responsibilities of the property owner
– Any additional fees or charges
It is important to note that the REAA can be customized to suit the needs of the property owner and the agency. However, any changes to the agreement should be made in writing and agreed upon by both parties.
Before signing the REAA, it is important to shop around and compare different agencies and their commission rates. It is also recommended to read online reviews and ask for referrals from friends or family members who have worked with real estate agencies in the past.
In conclusion, the real estate agency agreement (REAA) is an essential legal document that outlines the terms and conditions of your agreement with a real estate agency. It is important to read and understand the agreement thoroughly before signing it. By doing so, you can ensure that your property is in good hands and that you are getting a fair deal.