Agency Agreement – A Little-Known Right for Property Owners
Did you know that if your sole agency agreement lasts longer than 90 days, you may have the right to cancel it?
When selling a property in New Zealand, many owners sign a Sole Agency Agreement. This means you appoint one real estate agency exclusively to market and sell your property during the agency period.
What many vendors don’t realise is that New Zealand law provides an important protection for sellers.
If your sole agency agreement is for more than 90 days, you can cancel it by giving written notice once the first 90 days have passed. You do not need the agent’s permission to do so. This right is provided under New Zealand legislation and applies regardless of what the agreement says about its overall term.
This can be valuable if you decide you would like to change agencies, try a different marketing strategy, or take your property off the market altogether. Without knowing about this right, many owners mistakenly believe they must wait until the agreement expires. In many cases, once the initial 90-day period has passed, you can end the sole agency by giving written notice in accordance with the agreement and the legal requirements.
Before signing an agency agreement, it’s important to understand how long the agreement will last, whether it is a sole agency or a general agency, and what the cancellation provisions are. If you’re unsure about any part of the agreement, seek advice before signing.
At the Harcourts Candice Team, we believe every vendor should fully understand the agreement they are signing. We take the time to explain the key clauses, discuss your options, and answer any questions you may have so you can make informed decisions with confidence.
If you’re unsure how long your agency agreement runs for, or you’re thinking about changing agents or your selling strategy, we’d be happy to review the agreement with you and explain your rights in plain English.
Understanding the fine print today can help you avoid unnecessary stress tomorrow.
