Short answer: An agency agreement is the contract appointing a real estate agency to act for the seller. Check the agency type, term, commission, marketing authority, cancellation and any continuing commission exposure before signing.

Understand what the agreement authorises

Settled.govt.nz describes an agency agreement as a legally binding contract and tells sellers to understand what it covers before signing. The agreement records the agency relationship, services, commission and other terms. Keep the proposed agreement with the appraisal and written marketing plan so the commercial promises can be checked against the contract.

Ask the agent to explain every blank, schedule and additional term. Do not rely on a verbal statement that conflicts with the written agreement. If a term affects commission, cancellation, marketing costs, privacy, authority to advertise or another material obligation, obtain legal advice before signing if it is not clear.

Compare sole and general agency carefully

A sole agency appoints one agency for the agreed period. A general agency can involve more than one agency. The practical and commission consequences depend on the written terms and what happens during and after the agency period. Record the start, end and review dates exactly.

Before changing agents or signing another agreement, ask whether an existing or continuing obligation could still apply. Do not assume an expired marketing campaign means all commission exposure has ended. Give both agreements and the transaction history to the lawyer when overlapping claims could arise.

Separate commission from other seller costs

Copy the commission calculation, GST treatment, administration fees and any minimum or tiered charges into a comparison. Record marketing, photography, portals and other seller-paid costs separately. Ask which costs are payable if the property does not sell and which require separate approval.

A lower fee is not automatically the lower total cost or the better service. Compare what the agency will do, who will do it, how buyers are followed up and how reporting works. Keep unsupported claims about likely price or buyer demand out of the decision record.

Use a deliberate signing process

Read the agreement without meeting pressure. Confirm names and ownership authority, the property, agency type, dates, commission, marketing authority and any special conditions. Keep the signed copy and record who approved changes. Trustees, executors, company directors or separated owners may need their authority confirmed before appointment.

The agency-agreement worksheet is a reading aid and question list. It is not a substitute for the contract or legal advice. If the agency agreement changes, save a new version of the worksheet rather than overwriting the basis of the earlier decision.

  • Agency type and exact term
  • Commission, GST and separate costs
  • Marketing and other authorities
  • Cancellation and continuing-obligation questions

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Use these connected tools to record your own facts and questions. Values stay private and are never sent to an agent without a separate reviewed contact action.

Frequently asked questions

Should I sign an agency agreement at the appraisal meeting?

You can take time to read it, ask questions and obtain advice. Do not sign while material terms remain unclear.

Can more than one agency claim commission?

It can depend on the agreements and transaction history. Ask a lawyer before signing overlapping agreements or changing agency.

Are marketing costs always included in commission?

No. Check the written proposal and agreement for separate costs, approvals and what is payable if the property does not sell.

Official sources

Sources were accessed and checked on 21 August 2026. Keep the live source and current professional advice as authority if rules or circumstances change.