When it comes to buying or selling a property, an express agency agreement is a crucial piece of documentation that defines the working relationship between a real estate agent and their client. In this article, we will go through the intricacies of an express agency agreement in real estate.
What is an express agency agreement?
An express agency agreement is a legally binding contract between a real estate agent and their client, outlining the rights and responsibilities of both parties. The agreement specifies the terms of the relationship between the agent and the client, including the agent`s authority to act on behalf of the client.
In a real estate transaction, the agent is legally responsible for acting in the best interests of their client. The express agency agreement sets out the expectations of the client and the agent, such as the property`s sale price and the agent`s commission.
The express agency agreement can be exclusive or non-exclusive. In an exclusive agreement, the client agrees to only work with one real estate agent, whereas a non-exclusive agreement allows the client to hire multiple agents to sell their property.
What are the advantages of an express agency agreement?
An express agency agreement ensures that the agent has a legal obligation to promote and protect the interests of the client. It also ensures transparency in the relationship, as all the terms of the agreement are documented.
The agreement also outlines the agent`s commission, which is usually a percentage of the sale price. This ensures that the agent gets paid for their hard work and provides an incentive for them to secure the best possible price for the property.
Having an express agency agreement in place can also help avoid disputes between the client and the agent. The agreement allows the client to set out their expectations and provide clear instructions to the agent, reducing the risk of misunderstandings.
What should be included in an express agency agreement?
An express agency agreement should include the following key elements:
– The identities of the parties involved, including the client and the agent.
– The type of agency agreement, whether exclusive or non-exclusive.
– The duration of the agreement, which is usually a set period, such as six months.
– The commission payable to the agent.
– The sale price of the property.
– The marketing and advertising strategy to be used to sell the property.
– The list of services that the agent will provide, such as negotiating with potential buyers and handling paperwork.
In conclusion, an express agency agreement is an essential document in any real estate transaction. It sets out the expectations and responsibilities of both the client and the agent and ensures transparency in the relationship. By having a clear understanding of the agreement`s terms, both parties can work together towards achieving a successful sale or purchase.