New Zealand Residential Property Agency Agreement Approved Guide
Are you looking to buy or sell a residential property in New Zealand? If yes, then you might need to hire a real estate agent to assist you in the process. The first step towards hiring an agent is signing a property agency agreement which outlines the terms and conditions of the agent`s services. In this article, we will discuss the approved guide for a New Zealand residential property agency agreement.
The Real Estate Agents Authority (REAA) is the government body responsible for regulating the real estate industry in New Zealand. The REAA has developed a guide for the property agency agreement which must be followed by all real estate agents in the country. The guide contains a standard form of agreement which can be modified as per the needs of the client and the agent.
The agreement must be in writing and signed by both the client and the agent. The agreement must also include the agent`s name and license number, the client`s name and contact details, the property`s details, and the agent`s commission rate.
The commission rate is the amount that the agent will charge for their services. The rate can be negotiated between the client and the agent but must not exceed the maximum rate set by the REAA. Currently, the maximum commission rate is set at 4% of the sale price for residential properties.
The agreement must also state the duration of the agreement, which can be either open or fixed-term. An open agreement means that the agent can represent the client until the property is sold or the agreement is terminated. A fixed-term agreement means that the agreement will expire on a specific date unless extended by mutual agreement.
The agreement must also include the agent`s obligations and responsibilities. The agent must act in the best interests of the client, provide accurate and timely information, and disclose any conflicts of interest. The agent must also comply with the REAA`s Code of Professional Conduct and Client Care.
The client`s obligations and responsibilities must also be included in the agreement. The client must provide accurate information about the property, pay the agent`s commission, and comply with any legal requirements.
In conclusion, signing a New Zealand residential property agency agreement is an essential step in the buying or selling process. The agreement must follow the REAA`s approved guide and include the agent`s name and license number, the client`s details, the property`s details, the commission rate, the duration of the agreement, and the obligations and responsibilities of both parties. By following the guide, you can ensure a smooth and successful transaction with your real estate agent.