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More protection for agents' commission
Released 22 February 2011

Amendment to Agency Agreements SA00100, SA00200, SA00300 and SA00600.   

As part of the continual review of REINSW’s agency agreements, we are pleased to announce a significant amendment to the following REINSW Agency Agreements:

  • SA00100 – Open Selling Agency Agreement
  • SA00200 – Exclusive Agency Agreement
  • SA00300 – Auction Agency Agreement
  • SA00600 – Sole Agency Agreement
Previously, where a vendor terminated a Contract for Sale of Land following a breach by the purchaser, the agent was not entitled to commission even though the vendor was able to retain the forfeited deposit.

In such circumstances, the vendor, in effect, was the beneficiary of a windfall gain. Further, other professionals such as lawyers and conveyancers were able to charge the vendor for acting in relation to the termination of the contract.

The REINSW Board considered representations from members and resolved to amend these agency agreements to provide a new contractual right for the agent to be paid their commission in circumstances where the agent’s fees are the same, or less than, the amount of the forfeited deposit.

In effect, following termination, an agent’s commission can now be paid from the forfeited deposit and the vendor retains any balance.

These amendments are designed to achieve a more equitable result for agents as, in many cases, the ability of the purchaser to complete the transaction is entirely outside the control of the agent.

The changes are included as a new clause:

  • SA00100 – Open Selling Agency Agreement – clause 2(vi)(d)
  • SA00200 – Exclusive Agency Agreement – clause 3(vi)(d)
  • SA00300 – Auction Agency Agreement – clause 5(vi)(d)
  • SA00600 – Sole Agency Agreement – clause 3(vi)(d)
If, for whatever reason, agents do not wish to include this new clause in their Agency Agreements, the new clauses can simply be struck through prior to executing the Agency Agreement.

These new Agency Agreements are now available in paper through the REINSW Store or online via REI Forms Live –  

For further information regarding what the clause changes mean, please contact the REINSW Member Helpline on (02) 9264 2343.