TYPES OF AGENCY

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 dosing 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 dose
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 the 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 appointed and
only the estate agent who doses 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 ad hoc basis and fees are paid only
on successful conclusion of the estate agency transaction.