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Appointment to act

For all property agents

As a property agent, you cannot do anything for a client until that client appoints you in writing.

This is essentially a service agreement between you and the client that documents the rights and obligations of both parties.

The appointment

The appointment to act must include:

Any limitations or conditions on the agency
The services you will provide
The amount of commission, fees and expenses that the client will pay for these services
An end date, if the appointment is for a sole or exclusive agency
Any benefit or reward the agent may receive over and above the actual amount of expenses. This may include linen, cleaning, pay television and the like.

Forms

The form you need to complete depends on the type of service you are offering:

Transferring appointments

You can transfer your appointments to another real estate agent if:

your original appointment allows you to transfer an assignment
the client gives written consent to the assignment.

Renewing a sole or exclusive agency

You and the client may renew a sole or exclusive agency agreement no more than 14 days prior to the expiry of the appointment. You will both need to complete a new agreement.

Types of real estate agent appointments

The five types of appointment are usually:

open listing appointment
exclusive agency appointment
sole agency appointment
single appointment
continuing appointment.

These are described on PAMD Form 22a - Appointment of real estate agent (sales and purchase) (PDF, 217 KB).

Open listing appointment

The seller can open list their property with several agents and cancel the appointment at any time by writing to the agent.

Open listing appointments enable the seller to have agents compete for the commission on the sale of the house. An agent gets the commission only if they actually sell the property.

To terminate an open appointment, either the agent or client must give written notice.

Exclusive agency appointment

An agent with an exclusive agency appointment can get an agreed commission upon sale whether or not they actually sell the house.

If the seller sells the property, they must still pay the agent´s commission. If another agent sells the property, the seller may also have to pay them a commission. Potentially the seller may have to pay two commissions.

For all sole and exclusive agency appointments, the agent must give the seller a notice stating:

the proposed term of the appointment
whether the appointment is under a sole or exclusive agency
the difference between sole agency and exclusive agency
the consequences if the property is sold by someone other than the agent during the term of the sole or exclusive agency.

The notice may also state that at the end of a sole or exclusive agency, the appointment of the agent continues under an open listing, which the agent or seller can end at any time.

Sole agency appointment

A sole agency appointment is similar to an exclusive agency. However, if the seller makes the sale and the agent plays no part in getting the buyer, the agent may not be entitled to commission.

For all sole and exclusive agency appointments, the agent must give the seller a notice stating:

the proposed term of the appointment
whether the appointment is under a sole or exclusive agency
the difference between sole agency and exclusive agency
the consequences if the property is sold by someone other than the agent during the term of the sole or exclusive agency.

The notice may also state that at the end of a sole or exclusive agency, the appointment of the agent continues under an open listing, which the agent or seller can end at any time.

Single appointment

A single appointment is a one-off service. It can be open ended, as in an open listing, or contain a termination date such as in a controlled listing.

The maximum time for a controlled listing is 60 days.

Controlled appointments include:

multi-list
sole agency
exclusive agency
auction
tender
exclusive marketing/coordinating agency agreement.

Either an agent or client may terminate a controlled appointment either by mutual agreement or at the end of the listing term. The owner still reserves the right to withdraw the property from sale within the period of appointment.

A single appointment can be renewed within 14 days before the expiry date for a maximum of 60 days. The reappointment commences on the expiry date of the previous appointment.

Continuing appointment

This agreement is an on-going commitment from the agent and client to continue their business relationship until either party ends the agreement.

This type of appointment relates to property management where agents and clients agree to several services on an on-going basis.

Continuing appointments include:

rental property management
resident unit management
project marketing
affordable housing.

A continuing appointment must have a termination date, and either party can give notice to cancel it.

If either part wishes to terminate before the date of completion, they must give at least 90 days written notice. They can shorten the period if they mutually agree but it cannot be less than 30 days.

Last reviewed 17/07/2012