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Selling Secrets

Types of Agency agreements – which one is best for you?


Marketing by Auction is a very good method of finding a buyer. One of the great attractions of selling by Auction is that once the Auction has been held and you have signed the contracts, you have sold the property.

As the seller, you don’t have to wait for the terms and conditions of the contract to be filled by the buyer. The buyer does all his searches, finance, building and pest inspections and any other search that they may require, prior to bidding for the property at Auction. When you list your property by Auction you will be required to sign an PAMD22a

Many inner city agencies prefer to market their properties by Auction. Many buyers in these areas are familiar with the Auction selling process. Furthermore, buyers’ financial positions are usually very different from buyers in the outer suburbs.

With an Auction the seller is required to do an extensive advertising campaign, which may include newspaper ads, extensive photography with video, an Auction Board with the day and time of the Auction, as well as internet advertising on websites including  , and

Internet advertising can range from as low as a few hundred dollars, up to many thousands. Sellers will also need to take into consideration the cost of a Licensed Auctioneer for the Auction.

Properties that are suited to Auctions are generally inner city, very unique and different or properties being forced to be sold by a financial institution. Many Commercial and Industrial properties are ideal for Auctioning as well.  If the real estate industry is going through a roaring property boom, an auction could be a good chance to obtain a very good price for your property.

To auction a property, the Auctioneer will be required by Government law to be a Licensed Auctioneer.

Exclusive Agency

Most properties are sold by an exclusive agency agreement. Exclusive agency means that the agency you select has exclusive agency rights to sell the home for a maximum of 60 days. You will be required by the agency to sign a PAMD form 22a.

There are many advantages to using an exclusive agency to sell your home.

  1. You will have someone who is directly responsible for the marketing and selling of your home.
  2. The salesperson selected (when they sell the property) in most cases receives a higher portion of the commission split, encouraging that salesperson to work harder to find a buyer.
  3. If the agent does not perform to your satisfaction within the 60 day time period, you can select another agent / agency to sell your home.
  4. You are only dealing with one agency and salesperson.
  5. You can select an advertising campaign that suits your budget.
  6. You have only one lot of paperwork to fill in and keep under control.
  7. Exclusive agency agreements protect sellers from paying double commission.

Open Listing

Open Listing means that the seller can list their property with as many agents as they want.

You will be required by all of the listing agencies to sign a PAMDA form 22a.

Some sellers believe this is the best method of selling, because they have many ‘irons in the fire’ and the agencies will be competing against themselves to sell their property. However this is not the case. Most agencies have little interest in Open Listing because another agency can actually sell the property, when they themselves have put in a lot of work and expense to find a buyer for the property.

Selling by Open Listing can place the seller in a position of paying double commission on the sale their property. By who is “THE EFFECTIVE CAUSE OF SALE?”

Below is a very simple explanation for what can turn out to be a very complex and expensive legal exercise if you are not careful.


Agency A with SIGNED PAMD form 22a finds a possible buyer for the property. Shows the buyer through the property a number of times.

Agency B also has a signed PAMD form 22a as well and actually draws a contract on the property with the same buyer who inspected the property with Agency A. Most seller would not know which agency showed the buyer through the property let alone if 2 agencies showed the same buyer through the property. The same applies with the seller knowing which agency was a member of the R.E.I.Q or not.

Agency A finds out that the same buyer that they showed the property to has now bought the property from Agent B.

The seller could be in a position of possibly having to pay Agency B for selling the property as well as Agency A, because agency A can prove that they have caused “THE EFFECTIVE CAUSE OF SALE”

You are now in a possible position of paying two commissions.  If this does occur you may be involved with very expensive legal fees and perhaps double commissions.

WARNING: At the end of every agency agreement if your property has not sold or you are unhappy with the performance of the agency you have listed with or you just want to withdraw the property from the market. ALWAYS CONFIRM IN WRITING WITH ALL AGENCIES THAT YOU HAVE LISTED YOUR PROPERTY WITH that you arecancelling your agency agreement with them at the end of the agency agreement. By doing this you are protecting yourself to a large degree from the chance of being involved in paying double commissions or being involved in expensive legal fees.

IMPORTANT: At the end of the day, it is far easier a lot cheaper and safer to go through the selection process and select just one agency to sell your property as an Exclusive Agency, and sign just one PAMD form 22a for a maximum of 60 days and then if it doesn’t sell or your are unhappy with the agency you have selected. Simply always cancel the agreement in writing to the agency.


The Tender method is used to advertise a property for sale without a list price. This method is very rarely used in the sale of residential properties. Tenders are used by Government Departments and Commercial Real Estate Agencies to sell major projects and commercial and industrial projects.

Here’s how a tender works…

At a designated day and time, interested buyers will submit their offers by way of a contract on a tender document, which discloses the tender’s terms and conditions and the price submitted.

The tender documents submitted are opened by the vendor, their agent or a government department. The tenderer with the most attractive and acceptable terms and conditions for the seller wins the tender.

IMPORTANT: This can be a long and laborious process to sell a residential property. That is why it is seldom used in the market place.