Types of Agency
- EXCLUSIVE AGENCY
This refers to the instruction from a principal to a single estate agent to act on his behalf. The principal may make introductions but will leave the closing of the transaction to the estate agent. The principal must pay the appointed estate agent the agreed fee even if the estate agent was not the effective cause of the transaction.
- SOLE AGENCY
Just as in exclusive agency, a single estate agent is engaged. The principal may. However, wish to reserve the right to close deals himself and is not obligated to pay the agent his fee in addition to making introductions or an arrangement may be made for a discount in fees where the principal plays an active role.
- SOLE JOINT AGENCY
This is a variation of the Sole Agency. The estate agent works together with the principal as a team and fee is divided on a pre-agreed formula. The principal has the flexibility to compensate additional estate agents and at the same time maintain the advantage of having one estate agent in control.
- JOINT AGENCY
this is where more than one estate agent is appoint and only the estate agent who closes the deals gets paid. The number of agents appointed is limited and each is aware of the appointment of the others.
- AD HOC BASIS OR COMMONLY REFERRED TO AS OPEN LISTING
In this case, the principal can engage an unlimited number of estate agents on an adhoc basis and fees are paid only on successful conclusion of the estate agency transaction.