Agency agreement (listing)

An agency agreement is the contract between a property owner and a real estate agency authorising the agency to market and sell the property, and setting the commission payable.

The two main types

• Sole agency — one agency has the exclusive right to sell for a defined period
• General agency — multiple agencies can market the property, with commission to whichever sells

Sole agency is the norm and usually attracts a lower commission rate.

What to check before signing

• The term, and what happens at expiry
• The cancellation provisions — sole agency agreements often cannot be cancelled during the term
• The marketing budget and who pays it, win or lose
• The commission, including GST
• The post-expiry clause — many agreements entitle the agency to commission if you sell to someone they introduced, for a period after expiry. This can produce two commissions on one sale if not managed.

Common misunderstanding

Commission is negotiable, and rates vary between agencies. Many vendors do not ask.

The agent works for the vendor. Buyers relying on an agent's advice should understand whose interests are being served — see buyer's agent.

Related terms

Last reviewed: 1 August 2026 · General information only, not legal advice.

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