Frequently Asked Questions about Residential Property Sales

What should you do when you decide to sell your property?

You should consult a number of different real estate firms to give you an appraisal as to what the current market value of your property is, and how they would each go about marketing your property for sale.

Am I better to have a sole agency agreement with one real estate company, or list with several real estate companies?

In the end this is a matter of personal preference. Many real estate companies will tell you that if you give them sole agency for a fixed period of one to three months that they will be better able to market your property. You must remember that if you sign a sole agency agreement with a real estate agent you may be bound to pay a commission to that agent if you subsequently sell through another agent.

Am I required to sign a contract with the Real Estate Agent?

A real estate agent will also require a vendor to enter into a contract with the real estate company, appointing it to act as your agent and committing you to pay a commission based on the agent procuring a purchaser to enter into an Unconditional agreement for the sale of your property. Under the Contracts Enforcement Act no sale of real property is enforceable against the vendor unless it is evidenced in writing. You do not have to use a real estate agent to market your property. There is nothing to stop you marketing and selling the property yourself. You can put up your own "for sale" signs and place advertisements in a newspaper and run "open homes". You can ask your solicitor to prepare any contract to be signed by you as vendor, although in many instances the purchaser's solicitor will prepare an offer for the purchaser to present to you.

Should I sign an agreement to sell my property before getting my solicitor to check it on my behalf?

We say that you should always have a solicitor peruse an agreement before you sign it. Although there is a standard form of agreement prepared by the Auckland District Law Society and approved by the Real Estate Institute of New Zealand for the sale and purchase of real estate which is now used by the majority of agents and solicitors, there are still traps for the unwary if an agreement is signed without understanding the full ramifications of it.