The exclusive agency clauses I would change before signing anything

There is one word in a real estate agency agreement that can quietly cost you tens of thousands of dollars.

The word is "exclusive".

In an exclusive agency agreement, you owe the agent commission even if YOU find the buyer. Not the agent. You. Your friend. Your neighbour. Your work colleague. It does not matter who introduces them. The agent gets paid.

Most sellers do not realise this when they sign. It is buried in the standard wording, in language that sounds technical and unremarkable.

Here is what an exclusive agency actually is, the trap most people walk into, and the clauses I would push to change before I signed anything.

The main points

Exclusive agency means only one agent can sell your home for the agreement period.

In most Australian states, you still owe the commission even if YOU introduce the buyer.

Standard terms are 60-90 days. Some are longer. Some auto-renew without notice.

The biggest things to negotiate before you sign: the agreement type, the term, the auto-renewal, and the introduced-buyer clause.

What an exclusive agency agreement actually is

There are three main types of agency agreement in Australia.

Open listing. You can sign with multiple agents at once. Only the agent who introduces the actual buyer gets paid. Used to be common. Now rare.
Sole agency. One agent gets exclusive selling rights for a set period, but YOU keep the right to introduce your own buyer without paying commission.
Exclusive agency. One agent gets exclusive rights AND you owe them commission even if you find the buyer yourself.

Read that last one again. That is the trap.

Think about it like this

Imagine you sign with an agent. You agree on a 2.5 percent commission. The home is in a suburb where a lot of your network lives.

A few weeks in, a friend messages you. Her parents are looking for a place exactly like yours. Could she pass on the details?

She passes them on. The parents come through for a private viewing. They make an offer. You accept.

Then you read the agreement again.

It was an EXCLUSIVE agency, not a sole agency. You owe the full commission on the sale, even though the buyer came from your own network.

On a $900,000 sale, that is around $22,500 you have just signed away. Not because the agent did anything wrong. Because of one word in a contract you did not stop to read.

This is not a freak scenario. Many standard agency agreements in Australia default to the "exclusive" wording rather than the "sole" wording. The agent does not always point it out. The seller assumes "sole" and "exclusive" mean the same thing. They do not.

The clauses I would change before signing

If I were going to sign an exclusive agency agreement (for example, if I was selling a property a long way from where I live, and I genuinely needed an agent), here is what I would push to change first.

1. The agreement type

The single biggest fix. Read the document and check whether it says "sole" or "exclusive".

If it says "exclusive", ask the agent to change it to a sole agency, OR to add a written carveout: "If the buyer is introduced by the seller or the seller's direct network, no commission is payable."

Most agents will resist this. Some will accept it. Either way, you find out fast what kind of relationship you are about to be in.

2. The agreement term

Standard is 60 to 90 days. Some agencies push for 180.

I would never sign more than 60 days for a first agreement. If they are doing a good job, you renew. If they are not, you walk.

3. The auto-renewal clause

A lot of agency agreements roll over automatically unless you give written notice 14 to 30 days before the term ends.

Cross it out. Replace it with: "This agreement does not auto-renew. Any extension requires fresh written agreement."

4. The "withdrawn from sale" terms

If you take the home off the market mid-agreement, some agreements still entitle the agent to a fee, or to recover marketing costs.

Read this clause carefully. Negotiate it. Make sure you know what happens if you change your mind.

5. Termination terms

What if you want to switch agents because they are not performing? What is the notice period? Are there fees? Lock-ins?

The best time to negotiate the termination terms is before you sign. The worst time is once you are already 30 days in and unhappy.

When I would still use an agent

I am not against agents. There are situations where an agent earns their fee.

You live a long way from the property and cannot run inspections yourself.
You have a complex sale (deceased estate, divorce, off-market, niche commercial).
You have tried selling and it has not moved.

For most owner-occupied homes in a normal market, the agent fee is not justified by the value they add. For some properties, it is.

The point is to decide with information, not pressure.

A simple checklist before you sign anything

Before you put your name on an agency agreement, run through this list. Print it out if you want.

Is this a SOLE agency or an EXCLUSIVE agency? (Read the exact words.)
What happens if I introduce the buyer?
What is the agreement term, in days?
Does it auto-renew? If yes, can you remove that?
What happens if the home does not sell during the term?
What happens if I want to terminate early?
Have I had this reviewed by my conveyancer?

If the answer to any of these makes you uncomfortable, do not sign that day. Take it home. Read it. Have your conveyancer look at it.

A good agent will not pressure you to sign on the spot. If they do, you have your answer.

Frequently asked questions

What is the difference between sole agency and exclusive agency?
Sole agency = one agent has the right to sell, but you can still introduce your own buyer without paying commission. Exclusive agency = one agent has the right to sell, AND you owe commission even if you find the buyer yourself.

Can I terminate an exclusive agency agreement early?
Sometimes, but most agreements require notice (often 14-30 days) and may still entitle the agent to costs already spent. Always check the termination clause before signing.

Is an exclusive agency agreement legally binding?
Yes. It is a binding contract. Have your conveyancer review it before signing if you are unsure.

What is a "conjunctional" sale?
When two agents from different agencies work together on a sale and split the commission. Usually only applies under open listings.

Do I have to sign anything to sell my home privately?
No. With Propa, you list directly. There is no agency agreement because there is no agent.