Paying a buyer’s agent, a guide by DottoThe fee note

Page 05 · Ending

Ending a buyer’s agency agreement

How a buyer’s agency agreement ends depends first on its own terms. In Queensland, the Office of Fair Trading’s page says either you or the agent can cancel a buyer’s agent appointment at any time by written notice, giving at least 30 days unless you both agree to less. Queensland’s Form 6 is narrower for some appointments: for a fixed-term appointment other than a residential sale, it says the term may be ended earlier by mutual agreement, so check which kind of appointment Part 5 of your form applies to. Ending an agreement does not always end what you owe: WA Consumer Protection warns that some fees can still be due after you end it, or after you find and buy a property on your own.

General information, not legal advice. The official places to check are Queensland’s Office of Fair Trading, Consumer Affairs Victoria, WA Consumer Protection and NSW Fair Trading. A solicitor can tell you how your own agreement ends.

What Queensland’s guidance says

Queensland: notice, in writing

  1. Either side can give notice. Queensland’s Office of Fair Trading page says either of you can end the appointment at any time, with written notice to the other.
  2. Count 30 days. The minimum notice is 30 days, or less than 30 days if both parties agree.
  3. Check Part 5 of your form. Form 6 sets out termination by the kind of appointment. It gives the 30-day notice rule for continuing appointments, such as letting or collecting rent. For other fixed-term appointments, apart from residential sales, it says: “This term may be ended earlier by mutual agreement.” Check which of these your form applies to before you count on 30 days’ notice.
  4. Do not double up. Signing with a second agent while the first appointment is still running can leave you owing commission under both, or damages for breach of contract.
  5. Get it checked. Queensland recommends independent legal advice so the appointment is ended correctly.

Where the agreement decides

NSW, Victoria and WA: the agreement’s own terms

The pages read for this guide in NSW, Victoria and WA do not set a notice period for ending a buyer’s agency agreement. Instead, each one tells you to find out how it ends before you sign:

Questions about ending, from each state’s page
StateWhat the state suggests you ask
NSWHow can you end the agreement if you’re unhappy with how the agent performs, and what are its terms and conditions?
VICWhat time period does the authority cover? Can you terminate it if you aren’t happy with the service, and will you be charged for doing so?
WAHow can you end the agreement if you are not happy? Is it exclusive to the agent for a set period? What happens if you no longer want to buy, buy without the agent’s help, or use only some of the services?

The fee that outlasts the agreement

What you might still owe

An agreement can end and a fee can survive it. The states point to three situations to read for:

  • You stop looking. WA asks what happens if you decide you no longer want to buy. NSW and Victoria ask what you will be charged if the agent does not find a property you like.
  • You find it yourself. WA says some fees can still be due if you find and buy a property on your own, without the agent.
  • You appoint someone else. In Queensland, a second appointment before the first ends can mean two commissions or damages. In Victoria, an agent must not persuade a client into an authority that could see commission paid to more than one estate agent, unless the agent has first explained the possible consequences in writing.

The fee clauses themselves are covered on how buyer’s agents are paid.

When the service falls short

If the agent has not done the job

Ending an agreement because you are unhappy is different from ending it because the service failed. WA Consumer Protection explains that the Australian Consumer Law (ACL) expects a buyer’s agent to work with due care and skill, and in a reasonable time. Where the service falls short of that, it says you may be entitled to a refund or compensation, or to cancel the contract. If you cannot settle it with the agent, the next steps are on complaints about an agent.

Paperwork

Before you send the notice

  • Find your copy of the signed agreement. In NSW the agent must serve one on you within 48 hours of signing, and in Victoria an agent cannot claim commission without giving you a copy of the signed authority.
  • Read its term, its ending clause and every fee clause together.
  • Put the notice in writing. Queensland’s guidance asks for it; WA’s complaint advice is to write when talking doesn’t work, and to keep copies of agreements, letters and invoices.
  • If anything is unclear, ask your state regulator or a solicitor before you act, as NSW and Queensland both suggest.