What is a Sole Agency Agreement? Should I sign one?
What a Sole Agency Agreement can mean for you.
What happens when you sign a sole agency agreement with an agency? Here are 3 examples from owners that we worked with who wanted to sell their apartment. Unfortunately the agencies with whom they signed just didn't deliver at all or in a timely manner and this is due to the sole agency agreement in their contract.
A general agency agreement is a contractual arrangement that enables multiple real estate companies to concurrently undertake real estate tasks for a specific property. By signing a general agency agreement with more than one agency, you would only be required to pay commission to the agency that successfully sells your property. Under this type of agreement, every agent involved holds the listing, but none of them singularly assumes the responsibility of selling the property.
Summary:
Signing and selling my apartment with a sole agency agreement and what that means for me. This is important to understand as a Sole Agency agreement is legally binding. At Apartment Specialists we don’t lock you in.
It is important to understand and know your rights as an owner when selling your apartment and what it means when signing a Sole Agency Agreement.
This is because it is a legally binding document and sometimes owners don’t realise this and what implications this may have.
The most common clause in an agreement is signing with an agency and being locked into 90 days with the agency. This means if you are not happy or you feel the agent is not working for you, you can’t change until that time period is up.
We trust in that if the service is good why would you want to leave.
The choice should be yours.
In any other industry this would not be accepted, so why real estate?
When it comes to selling an apartment, there are several types of agency agreements that you can consider. Each type of agency agreement has its own characteristics and can impact the sales process in different ways. Here are the main types of agency agreement available:
1. Sole Agency or Listing Exclusively:
With a sole agency agreement, only one real estate company is authorized to handle the marketing and sale of your property. If you decide to sign a sole agency agreement, it's important to refrain from engaging another agent since you may be liable to pay commission to both.
2. General Agency:
A general agency allows multiple real estate companies to work simultaneously to sell your property. If you choose a general agency agreement with multiple agencies, you would only be obligated to pay commission to the agency that successfully sells your house. In this arrangement, all agents have access to the listing, but there is no singular responsibility for selling the property.
Deciding between a sole agency and a general agency will depend on your preferences and circumstances. A sole agency can provide a dedicated focus on selling your home, as the assigned salesperson has a direct obligation to secure a sale. On the other hand, a general agency can provide wider exposure and potentially attract more potential buyers since multiple agencies are involved.
It is advisable to discuss the different types of agency agreements with a real estate professional who can provide more insights and guidance specific to your situation. If you are interested in selling your home or investment or simply curious about its market value, feel free to contact us today for a complimentary property appraisal.