Conjunction Agency Agreement Victoria

A conjunction agency agreement is a legally binding agreement between two parties, where one party agrees to act as an agent for the other party. In the context of Victoria, this agreement applies to real estate agents who are licensed by the state to sell or manage property.

The purpose of a conjunction agency agreement is to allow two or more agents to work together to find a buyer for a property. This can be advantageous for both parties since it increases the pool of potential buyers, which can lead to a faster sale and a higher price.

In Victoria, the Real Estate Institute of Victoria (REIV) has guidelines for conjunction agency agreements to ensure that they are fair and equitable for all parties involved. According to these guidelines, agents must disclose their relationship to each other and to the vendor, and they must agree on how commissions will be split.

The REIV also recommends that agents document their agreement in writing to avoid any misunderstandings or disputes later on. The agreement should outline the responsibilities of each agent, the commission split, and any other relevant terms.

It’s important to note that conjunction agency agreements are not mandatory, and agents are free to work independently if they choose to do so. However, they can be a useful tool in certain situations, such as when a property has been on the market for a while and needs a fresh approach.

In conclusion, a conjunction agency agreement is a useful tool for real estate agents in Victoria who are looking to sell or manage property. By working together, agents can increase the pool of potential buyers and potentially achieve a higher price for their clients. As always, it’s important to follow the guidelines set out by the REIV and document the agreement in writing to avoid any disputes later on.

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