There is a short 'grace period' after signing a real estate agency contract but once that deadline has passed, the process for changing real estate agents requires a more tailored approach, depending on the agency contract you signed. Each real estate agency has its own contract and every vendor has a unique situation that needs resolving.
You may have concerns about having to pay double commission, or more advertising money should you decide to switch agents. These are all things we can help guide you on.
A recent client of ours switched agencies after months on the market and sold well in 16 days with another - so it is possible - but there is a process to be aware of.
We have guided many sellers through the process of switching real estate agents over the years. We are independent of all real estate companies, have a national overview of the industry and have won several awards for our services dedicated to helping vendors.
There is a cooling down period after signing an agency agreement with a real estate company.
However, if a real estate agent carries out any work before the agency agreement being terminated that results in the sale of the property, the agreement will be legally binding.
What happens once a sole agency agreement is cancelled depends on what the agreement says, however real estate agents must still have advised you about the possibility of paying double commission.
If you are dissatisfied with your real estate agent, you can request to cancel the contract in writing. Most - but not all - agencies resist this. This is something we can advise you on.
You may have either a sole agency agreement (where you list with only one agency) or a general agency agreement (where you can list with several). If it's a general agreement, it will specify the notice period for cancelling so that the agency can conclude any introductions. However, in our experience, you are far better to list with one vetted real estate agent rather than multiple.
Beware before signing an agency agreement – the peril of paying double commission
If you terminate an agency agreement due to being unhappy with your real estate agent, you need to be aware of when double commission could be due – to your former agent and your current one.
If the first agency has done work that contributes to the sale of your property – for instance finding a buyer who later goes onto purchase it via the second agency, you may still have to pay the first real estate agency commission.
In this instance the commission would be shared between the first and second agents.
You should check with your new real estate agent about the risk of paying two commissions.
The original agreement must be cancelled in writing with a date that is to come into effect.
Common reasons for switching real estate agents when selling and making complaints include, but are not limited to:
These are all examples of actual unofficial complaints vendors have confided to us but there are many more.
With over 12,515 (Nov 2023) licensed sales people in New Zealand using a real estate agent who has been vetted provides greater assurance to avoid these or similar scenarios.
Standard Clauses were developed jointly by the Real Estate Authority and the Real Estate Institute of NZ to create greater certainty around the scenario of double real estate commission being charged to vendors.
Before signing a real estate agency contract to list a property for sale, real estate agents must advise the vendor on the circumstances in which full commission would need to be paid to more than one agent.
When an agency agreement is terminated, your real estate agent is required to provide you with a written list of the names of prospective buyers the agent would claim a commission on if they ended up buying the property. This includes people who attended viewings.
Not all real estate agents are using the standard clauses designed to create greater clarity around double commission scenarios, but all must advise vendors of the possibility of double commission in the event of an agency agreement termination.
Buyers’ and sellers’ personal situations combined with agents needing to comply with the Real Estate Agents Act 2008 can make real estate work complex.
We’ve been helping New Zealand home sellers for over a decade. Many have changed real estate agents with our support and have often sold quickly after a new agent has taken over.
If you are worried that you are not with the right real estate agent, we can give you free guidance on how to remedy the situation.
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Page updated November 9, 2023 by Trish Willis | Member of the Property Institute of NZ (IPAC) which awarded us Property Advisor of the Year 2023
