Client care, agency agreements and disclosure
This domain tests client care and the formal steps that make an agency agreement enforceable. Expect questions on approved forms, disclosure before signing, commission, expiry, cancellation, and conflicts.
Core rules
- An agency agreement must be in writing, in the approved form, signed by the client and the licensee, and given to the client as a copy. It should record the parties, the licence status, the term and expiry, the method of sale, commission, estimated expenses, cancellation, and any disclosures.
- Before the client signs, disclose commission, estimated expenses, any rebate or benefit the licensee receives, conflicts of interest, the complaints process, and the REA consumer information. Commission is negotiable; hidden fees are a conduct risk.
- Know the difference between sole and exclusive agency. In a sole agency, the vendor may still sell privately without paying the agent; in an exclusive agency, commission can be payable even if the vendor sells privately during the term. Explain the consequence, not just the label.
Worked example
A salesperson gets an oral agreement from a vendor and later claims commission when the vendor lists with another agency. The first agreement was not written and signed, so the commission claim is vulnerable. The correct process is a signed approved-form agreement, a copy to the vendor, and clear disclosure of the term and commission before work starts.
Traps
- Using an outdated form or leaving the expiry blank.
- Failing to give the client a copy.
- Not disclosing a referral rebate because it was paid to the agency, not the salesperson.