Commission Agreement (Real Estate) Template for New Zealand

The Commission Agreement (Real Estate) is a fundamental document in New Zealand's real estate industry, essential for establishing the professional relationship between real estate agents and property owners. This agreement is required whenever a property owner engages a licensed real estate agent or agency to sell their property in New Zealand. It must comply with the Real Estate Agents Act 2008 and associated regulations, which govern real estate transactions in New Zealand. The document outlines critical elements including commission structures, agency type (sole, general, or exclusive), marketing strategies, and the respective obligations of both parties. It serves as both a legal requirement and a practical framework for the property sale process, protecting the interests of both the agent and the property owner while ensuring transparency and compliance with New Zealand real estate regulations.

1. Parties: Identification of the Agent/Agency and the Client (property owner)

2. Background: Context of the agreement including property details and purpose of engagement

3. Definitions: Key terms used throughout the agreement including 'Commission', 'Property', 'Sale Price', and 'Agency Period'

4. Appointment and Agency: Formal appointment of the agent and type of agency (sole, general, or exclusive)

5. Duration of Agreement: Specified term of the agency agreement including start and end dates

6. Agent's Obligations: Detailed listing of agent's duties and responsibilities as per the Real Estate Agents Act

7. Client's Obligations: Client's responsibilities including providing accurate information and access to the property

8. Commission Structure: Detailed explanation of commission rates, calculation method, and payment terms

9. Marketing and Advertising: Agreed marketing strategy and associated costs

10. Termination: Conditions and process for terminating the agreement

11. Dispute Resolution: Process for handling disputes between parties

12. General Provisions: Standard contractual terms including governing law, notices, and entire agreement