Effective cause of Sale
The issue of whether an agent was the effective cause of sale is often raised in circumstances where a vendor has engaged multiple agencies in the sale of their property either simultaneously or consecutively. Unfortunately, there is no set formula that Tribunals or Courts use to determine effective cause of sale. Each case will be determined on its merits, however, there are some key indicators that Courts and Tribunals examine such as:
- Who effectively introduced the eventual purchaser to the property;
- What actions each of the agents undertook to cause the sale;
- Any third-party negotiations that may have affected the outcome of the sale;
- The timing of the campaign for the sale; and
- The purchase price of the property.
Many agents don’t realise that the Tribunal has discretion to determine the amount of commission that an agent is entitled to, despite what was agreed to on the Agency Agreement. Fortunately, there are ways in which agents can protect their interest in the sale to prevent disputes or protect their claim to commission.
Please watch our short video below to find out more about how agents can protect claim to commission and prevent future commission claim disputes.