Auction Agency Agreement

What is an auction agency agreement?

An auction agency agreement is a contractual arrangement between a property owner and a real estate agent or agency. This agreement creates an exclusive right for that particular agent or agency to sell the property at auction. 

What happens if I use a different agent to sell my property instead? 

In the event that you or another real estate agent sell the property during the agreed-upon exclusivity period, it remains an obligation to pay the agreed-upon commission to the designated agent. 

The agreement ensures that the agent who secured the exclusivity rights is entitled to compensation for their efforts, regardless of the circumstances surrounding the property's sale within the stipulated time frame. 

What are other types of agency agreements? 

Other common agency agreements can include: 

• Exclusive agency agreement: where an agent or agency has an exclusive right to sell your property (through any method).
• Open agency agreement: this allows you to list the property with a number of agents, with commission being paid to the agent who finds the buyer.
• Multiple listing agreement: a situation in which you have three or more estate agents all acting on your behalf at the same time.