Once you choose an agent, you will be asked to sign an authority to sell, appointing that agent. This is a legally binding contract, which fully sets out the details of your agreement with the agent, including:
• whether the property is to be sold by private sale or auction (and the auction date)
• the negotiated commission and marketing expenses with GST set out separately
• the circumstances under which commission is payable; this will depend upon the type of authority signed, whether it is an ‘exclusive’ or ‘general’ authority
• the agent’s estimation of the likely selling price or selling range
• the authority period or amount of time given to the agency to sell the property.
The authority must include two statements:
• a rebate statement indicating whether or not the agent is to receive a rebate from advertising or other expenses
• a statement explaining that you can lodge a complaint with Consumer Affairs Victoria should a dispute over commission or outgoings arise.
Source: Consumer Affairs Victoria