Real Estate Agents Act 2008

Duties relating to real estate agency work - Agency agreements

126: No entitlement to commission or expenses without agency agreement

You could also call this:

"No commission without a signed agreement"

Illustration for Real Estate Agents Act 2008

You are not entitled to get commission or expenses from a client unless you have a written agency agreement. The agreement must be signed by you and the client. It must also follow any rules made under section 156. You must give the client a copy of the agreement within 48 hours of them signing it. If you do not, you might not be able to get your commission or expenses. But a court can still let you have them if you forgot to give the client the copy or something else stopped you. The court will only do this if the amount you are asking for is fair and if not getting it would be unfair. This rule is more important than some other rules in the Contract and Commercial Law Act 2017.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1152117.

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Part 5Duties relating to real estate agency work
Agency agreements

126No entitlement to commission or expenses without agency agreement

  1. An agent is not entitled to any commission or expenses from a client for or in connection with any real estate agency work carried out by the agent for the client unless—

  2. the work is performed under a written agency agreement signed by or on behalf of—
    1. the client; and
      1. the agent; and
      2. the agency agreement complies with any applicable requirements of any regulations made under section 156; and
        1. a copy of the agency agreement signed by or on behalf of the agent was given by or on behalf of the agent to the client within 48 hours after the agreement was signed by or on behalf of the client.
          1. A court before which proceedings are taken by an agent for the recovery of any commission or expenses from a client may order that the commission or expenses concerned are wholly or partly recoverable despite a failure by the agent to give a copy of the relevant agency agreement to the client within 48 hours after it was signed by or on behalf of the client.

          2. A court may not make an order described in subsection (2) unless satisfied that—

          3. the failure to give a copy of the agreement within the required time was occasioned by inadvertence or other cause beyond the control of the agent; and
            1. the commission or expenses that will be recoverable if the order is made are fair and reasonable in all the circumstances; and
              1. failure to make the order would be unjust.
                1. This section overrides subpart 5 of Part 2 of the Contract and Commercial Law Act 2017.

                Notes
                • Section 126(4): amended, on , by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).