Changing real estate agents in NZ: how it works

The short answer is, yes, you can change real estate agents when selling a property in NZ. However, it isn’t always straightforward, and it can come at a cost.

Exactly how the process will work will depend on how far into the process you are, and what type of agency agreement you signed. Remember, that real estate contracts in NZ are legally binding.

There are two types of agency agreements you could when selling in NZ:

• Sole agency agreements: this gives one agency exclusive rights to market and sell your home.
• General agency agreements: this gives multiple agencies the right to market and sell your home. While you sign different agreements with each agency involved, you should only pay commission to one once the property sells.

You’ve signed a legally binding agreement with the agency, so they have to agree to release you. And yes, sometimes, they might refuse to do so. At a minimum, you expect them to put up a fight - selling homes is how they make their money, after all.

However, if your agency refuses to release you, you aren’t out of options. You still have ultimate control over your home, and you can simply take it off the market until the agency agreement expires. Of course, this will delay your home selling process, so it depends how strongly you feel about not working with this agency.

The only circumstance in which this option isn’t open to you is if your home has already gone unconditional with a buyer - at this point, you’re legally obliged to go through with the sale, meaning you can’t withdraw from the market. Before this point, if you want to take your home off the market, you need to tell the agency in writing to make sure they stop and remove all existing marketing materials, like your Trade Me Property listing.

Of course, you can’t wait for your real estate agent to introduce you to a buyer, cancel your contract and then sell your home to that person without paying commission fees. So, there are rules set up around this.

In most cases, If you sell your property privately within a six month period of your agency agreement ending and (1) you were introduced to the buyer through your ex-agent and/or (2) the agency was instrumental in the property sale, you still need to pay the agent commission. This is regardless of whether the agreement was sole or general. In rural real estate transactions, this commission liability period can last up to one year.

These timeframes can differ somewhat from agency to agency, so if you aren’t sure about if and how it applies to you, your best option is to seek legal advice.

The only thing worse than paying commission when you weren’t expecting to? Paying double commission.

This unfortunate circumstance can happen when you hired an agent who found a potential buyer, and then you cancelled the initial agency, found a new one, and that same buyer ended up buying your home.

Remember, your new agent has no control over any previous agency agreement. However, that new agent should be able to warn you about the risk of paying double commission, as long as you give them a heads up that you previously had a separate agency working on the property.

• Failing to provide written market appraisals or a signed copy of the agency agreement within 48 hours of your signing.
• Improper deposit management, violating industry rules and potentially leading to contract cancellations.
• Real estate agent misconduct involving undisclosed personal or professional conflicts of interest.
• Incompetence or failure to meet deadlines when working with buyers to complete necessary tasks.
• Overstating property appraisal values to secure an agency contract, followed by pressuring you to reduce prices for advertising purposes.
• Real estate agent unreliability or misconduct during open homes, including pressuring you to accept low offers.
• Inadequate communication.
• Not presenting you with offers to purchase, or sale and purchase agreements.
• Using property descriptions and photos for advertising that you didn’t agree upon.
• Lack of sufficient knowledge or experience in handling property types like yours.