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Member Helpline Q&A
Schedule 7 of the Property, Stock & Business Agents Regulation 2003 states that all Agency Agreements must contain a term indicating the period for which the agreement remains in force or indicating that the agreement remains in force until terminated.
While there are no limitations under the legislation that restrict the period of an exclusive agency agreement, there is a requirement under Schedule 8 of the Property, Stock & Business Agents Regulation. It is specific to Agency Agreements for the sale of residential property, stating that for a fixed term agreement that exceeds 90 days, the agreement must include a term that entitles the principal to terminate the agreement (without penalty) by giving 30 days’ notice in writing to the agent at any time after the end of the first 90 days of the term.
However, the misconception appears to be where exclusive Agency Agreements are greater than 90 days. The principal is still required to give the agent 30 days’ notice to terminate the agreement despite the exclusive period having expired and the agreement now being in the “Continuing Agency Period”.
This is generally not the case and under the provisions of the REINSW Exclusive Selling Agency Agreement. A Principal may terminate an agreement during the continuing agency period by giving the agent immediate notice in writing, regardless of how long the exclusive agency period was signed up for.
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