Practical tips about the top ten thematic topics that smart consumers should pay attention to during property transactions or appointing estate agents.
Appointment period and commission
After being appointed to handle property transactions, an estate agent has to sign an Estate Agency Agreement (“Agreement”) with his client. Once the Agreement is signed, any revisions must be mutually agreed by both parties. Generally speaking, the Agreement cannot be cancelled or amended unilaterally.
To avoid any disputes, the Agreement should state clearly the agreed validity period of the appointment, whether it is an exclusive agency and the amount or rate of commission etc.
Consumers should not use “until further notice” as the expiry date of the validity period of an appointment, but should instead clearly state the commencement and expiry dates of the appointment.
The Estate Agents Ordinance does not stipulate the amount or rate of commission. It should be negotiated between the estate agent and his client.
Consumers should carefully consider whether to appoint an estate agent as an exclusive agent, and if they decide to do so, the validity period of the appointment should not be too long.