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paying agent if you take property off the market


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11 replies to this topic

#1 Quick hedgehog

Posted 26 August 2019 - 09:26 AM

If you put your property on the market with an agent and it doesn't sell or look like selling within say 6 months, so you elect to take it off the market, do you have to pay anything to the agent, apart from any costs you agreed with as per the agreement, such as advertising?

Purely hypothetical at this stage, haven't actually put property on the market yet and will obviously be asking the agent.  Just want an idea now.

#2 seayork2002

Posted 26 August 2019 - 09:28 AM

Depends on what the contract says so I can't give a yes or no answer (other may be able to )

#3 born.a.girl

Posted 26 August 2019 - 09:33 AM

As per pp, your contract will state the period of time the agent is contracted to sell your property.

From memory, it's usually a lot less than six months that they have exclusive rights for, but I've only done one in recent years, so not much help.

#4 Quick hedgehog

Posted 26 August 2019 - 09:57 AM

The contract will be 90 days exclusive rights.  As we are not desperate to sell, if it isn't attracting interest by the end of this time we are likely to pull it off and tenant it.  (Potential agent is aware of this)

I can't see anything in the contract that indicates that there would be a payment to the agent under these circumstances, hence the question and I realise noone else can answer without seeing the actual contract.

So I guess what I really want to know is whether this is likely, or if I am misunderstanding something in the contract.  

It just seems odd that an agent would market the property and potentially walk away with nothing if we decide not to sell.

#5 hills mum bec

Posted 26 August 2019 - 10:01 AM

It really depends on what is written in your Sales Agency Agreement with the agent.  You will likely have to pay all the marketing costs that have been incurred and there may be a small admin/withdrawal fee charged.  Our agency used to charge a $500 admin fee if a property was withdrawn from sale either during an agency period or at the conclusion of the agreement but we did away with it a few years ago as it was too hard to get people to pay it.

#6 Quick hedgehog

Posted 26 August 2019 - 10:06 AM

Thanks hills mum bec.  If there was any kind of withdrawal fee, would it be written in the contract?  Marketing costs are specified and obviously would be payable regardless.

From your post it sounds like withdrawing from sales does happen sometimes, and that it is possible that the agent doesn't get paid in this case?

#7 born.a.girl

Posted 26 August 2019 - 10:06 AM

I suppose it does seem odd, but it seems to be industry standard that they get a confirmed period of time, and if they don't sell in that time, it's their see to.

I've only sold a handful of times, but the end of the contract period was the end of any obligation to the agent, obviously apart from advertising etc.

#8 hills mum bec

Posted 26 August 2019 - 10:21 AM

View PostQuick hedgehog, on 26 August 2019 - 10:06 AM, said:

Thanks hills mum bec.  If there was any kind of withdrawal fee, would it be written in the contract?  Marketing costs are specified and obviously would be payable regardless.

From your post it sounds like withdrawing from sales does happen sometimes, and that it is possible that the agent doesn't get paid in this case?

Yes it happens.  If there is a withdrawal fee it should be mentioned in your agency agreement in the section regarding the fees payable.  Also keep in mind that if your house is listed for sale and during the agency period the agent presents you with an unconditional offer that is more than your minimum expected price but you decline the offer and decide not to sell the property then you can be charged for the full commission that would have been charged if it had sold.  This is called a "deemed sale" and not many people are aware of this clause in an agency agreement.

#9 Quick hedgehog

Posted 26 August 2019 - 10:28 AM

Thanks again.  Definitely no withdrawal fee listed.

Thanks for the info on deemed sales, good to know.

Is the minimum expected price that this would apply to generally listed in the contract?

Our potential contract lists the 'price at which property is to be offered'  which is a single dollar figure, but also has a box for:

"Agents opinion as to current estimated selling price (or price range) (this opinion is not to be construed as a valuation)"  which is shown as a range for which the lower price is $50,000 less than the listed price.

#10 hills mum bec

Posted 26 August 2019 - 11:40 AM

View PostQuick hedgehog, on 26 August 2019 - 10:28 AM, said:

Thanks again.  Definitely no withdrawal fee listed.

Thanks for the info on deemed sales, good to know.

Is the minimum expected price that this would apply to generally listed in the contract?

Our potential contract lists the 'price at which property is to be offered'  which is a single dollar figure, but also has a box for:

"Agents opinion as to current estimated selling price (or price range) (this opinion is not to be construed as a valuation)"  which is shown as a range for which the lower price is $50,000 less than the listed price.

I'm only familiar with agency agreements in SA.  Our agreements have three prices on them, the price that is acceptable to the vendor (must be a single figure), the Agent's genuine estimate of price (must be a single figure) and the price that the property will be marketed at which can be a range but the lower value of the range must not be lower than either of the other two prices.

Edited by hills mum bec, 26 August 2019 - 11:40 AM.


#11 kitkatswing

Posted 26 August 2019 - 11:44 AM

In Vic I was advised you only need to pay an Agents fee if you sell with another Agent within the 90 days.

#12 Dianalynch

Posted 26 August 2019 - 07:22 PM

Yes, the minimum price is generally listed in the contract, and if the agent brings you an offer and you decline, and you withdraw the property, you will be charged the sale commission ie deemed sale.

We have generally listed a high minimum price to give us flexibility. Eg on our last sale, the minimum we would have taken was $1.4, but we put the contract minimum as $1.5 to ensure we wouldn’t have a deemed sale if we needed to withdraw the property.




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