Standard clauses for residential and rural agency agreements
Agents can choose to use a voluntary standard clause in their residential and rural agency agreements. These clauses were developed by REA and the Real Estate Institute of New Zealand (REINZ) in response to industry requests for clearer guidelines around commission and agency agreements.
Residential agency agreements
We recommend that all agents selling residential property use these clauses, and we advise vendors to only enter into residential agency agreements with real estate agents who use the recommended standard clauses in their agency agreements.
Benefits of the residential standard clauses
The clauses provide certainty about:
- when an agency ends
- when a commission needs to be paid.
Advantages include:
- consumers are protected from the risk of being asked to pay commissions to two agents
- reduced risk of commission-related disagreements between agencies
- reduced risk of complaints to REA or REINZ.
Features of the residential standard clauses
For sole agency agreements, the standard clauses set out that:
- the sole agency agreement will automatically expire after 90 days if no end date is specified
- an agent can only claim a commission if a sale and purchase agreement is signed during the term of the agency agreement; or if the agent introduces someone to the property during the term of the agency agreement, and that person then buys the property privately within 6 months of the contract ending.
For general agency agreements, the standard clauses set out that:
- agreements can be cancelled on 7 days’ written notice
- an agent can only claim a commission if a sale and purchase agreement is signed during the term of the general agency agreement and where:
- the agent has been instrumental in bringing about the sale and purchase agreement - or
- the sale and purchase agreement is signed with someone introduced by the agent.
For both sole and general agency agreements, the sale and purchase agreement must eventually become unconditional. The agent can still claim a commission even if the sale and purchase agreement becomes unconditional after the agency agreement has ended.
If a vendor sells privately to someone introduced to the property by an agent:
How to use the standard clauses
Cut and paste the standard clauses into your residential agency agreements.
Let us know you are using the residential standard clauses
Agencies using the residential standard clauses
Rural agency agreements
Benefits of the rural standard clauses
The clauses provide certainty about:
- when an agency ends
- when a commission needs to be paid.
Advantages include:
- consumers are protected from the risk of being asked to pay commissions to two agents
- reduced risk of commission-related disagreements between agencies
- reduced risk of complaints to REA or REINZ.
Features of the rural standard clauses
For sole agency agreements, the standard clauses set out that:
- an agent can only claim a commission if a sale and purchase agreement is signed during the term of the agency agreement.
For general agency agreements, the standard clauses set out that:
- agreements can be cancelled on 7 days’ written notice
- an agent can only claim a commission if a sale and purchase agreement is signed during the term of the general agency agreement and where:
- the agent has been instrumental in bringing about the sale and purchase agreement or
- the sale and purchase agreement is signed with someone introduced by the agent.
For both sole and general agency agreements, the sale and purchase agreement must eventually become unconditional. The agent can still claim a commission even if the sale and purchase agreement becomes unconditional after the agency agreement has ended.
If a vendor sells privately to someone introduced to the property by an agent:
If the vendor cancels a general or sole agency agreement and then sells privately to someone the agent has previously introduced to the property, the agent can claim a commission but only if the sale is made within 12 months of the contract ending.
How to use the standard clauses
Cut and paste the standard clauses into your rural agency agreements.
Let us know you are using the rural standard clauses
Let us know when your agency is using the standard clauses in your rural agency agreements. Your agency's name will then be included in the list of participating agencies on this website.
Download the voluntary agreement to use standard clauses [PDF, 227 KB]
The agency owner, branch manager or someone able to sign on behalf of your agency should complete this form.
Agencies using the rural standard clauses
See our list of agencies who have committed to using the standard clauses in their agency agreements — this is updated regularly.
Standard Clause List (2024) [PDF, 452 KB]
(Use of the standard clauses does not imply any REA endorsement of the agent or their practices.)
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