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Real Estate Agencies

Reviewing representation in a real estate agency appointment

In brief

Before relying on an agency's recommendation, understand whom it represents and what work it has agreed to perform. Property transactions can involve several parties with different interests. A clear explanation of roles helps the buyer decide what additional advice or verification is needed.

Before relying on an agency's recommendation, understand whom it represents and what work it has agreed to perform. Property transactions can involve several parties with different interests. A clear explanation of roles helps the buyer decide what additional advice or verification is needed.

Ask for the role in plain language

Request a description of the agency's relationship with the buyer, owner and any other intermediary. Ask which communications it will handle and which decisions remain with the buyer. Reconcile that explanation with the proposed written appointment.

Have the relevant terms assessed through the organisation's legal or contractual review process. Do not infer legal duties from a salesperson's use of words such as adviser or partner. The actual arrangement and applicable rules matter.

Identify interests that affect the recommendation

Ask how the agency is remunerated and whether a proposed property involves another commercial relationship relevant to the instruction. The objective is to understand the recommendation's context, not to assume that every disclosed relationship makes it unsuitable.

Record the explanation and decide what independent evidence is needed for the property decision. The buyer may still need its own technical assessment, contractual advice or financial evaluation even when the agency's role is clearly documented.

Keep introductions and decisions traceable

Maintain a record of proposed properties, who introduced them and the status of the enquiry. Clarify how the agency expects overlapping introductions to be handled under the proposed agreement. Seek appropriate advice on ambiguous terms before they become the subject of a dispute.

For example, a buyer may encounter the same property through two channels. The right response is to clarify the facts and contractual position, not to assume that one introduction automatically removes obligations arising elsewhere. The agency should help explain its own role without presenting a disputed conclusion as settled.

Recheck roles when the arrangement changes

If another intermediary joins the transaction or the agency's scope expands, update the responsibility record. Confirm who communicates with each party and how material information reaches the buyer's decision-makers.

A transparent appointment does not eliminate every conflict or risk, but it gives the buyer a more reliable basis for evaluating advice. Keep the agency selection, the property assessment and the review of transaction documents connected while recognising that each answers a different question.

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