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Do you help clients sell or purchase properties or goods such as cars? You may need a Sales Agency Agreement.
If you’re providing services to help buyers purchase items, you’ll need a Sales Agency Agreement to outline the services you’ll provide to your clients, the payment terms, and your authority to act on behalf of your client. Ensuring that your agreement is detailed and clear is crucial in today’s fast‐paced market, particularly with the rise of digital platforms that have transformed how contracts are executed in 2025. For guidance on what makes a contract legally binding, you can read our article on what makes a contract legally binding.
Why Do I Need A Sales Agency Agreement?
A Sales Agency Agreement is essential – particularly if you’re dealing with high‐value assets like property or cars. This agreement not only spells out your commission structure but also protects your right to payment once a sale has been finalised.
If you work on a commission basis, having your agreement in writing is critical to ensure that you receive the compensation you are owed after the sale. With updated legal standards in 2025, written agreements provide clarity on responsibilities and help avoid costly disputes.
What To Include In A Sales Agency Agreement?
It’s important to make sure that your Sales Agency Agreement includes:
- The scope of services you will provide, including detailed descriptions of the property or goods you will be purchasing on your client’s behalf.
- The amount of fees or commission you will receive, and any conditions related to the commission structure.
- The specific circumstances under which you are entitled to payment – for instance, whether payment is triggered at the point of purchase or upon the final sale.
- The method of payment you will receive – for example, whether your commission will be deducted directly from the deposit or paid as a separate sum.
- The extent of your authority to act on behalf of your client, including whether you can execute or amend sale contracts; this is further explained in our guide on what is a contract.
- The term of the agreement – whether it is for a fixed period or an open‐ended duration covering the entire sale process.
It is also advisable to include clauses detailing dispute resolution procedures and conditions for early termination. For further reassurance, consider having your agreement reviewed by a professional – our contract review and redraft service ensures your document meets current legal requirements.
Example
Jim is a real estate agent at an agency that assists clients in buying and selling homes. Stanley is looking to purchase an investment property and has engaged Jim’s services to secure a suitable purchase.
Being very busy with his day job, Stanley relies on Jim not only to find the right property but also to execute sale contracts on his behalf.
Given the high value of properties, Jim ensures that a Sales Agency Agreement is in place so that he receives the commission he is owed once Stanley’s purchase is finalised. This agreement clearly states Jim’s authority to exchange contracts on Stanley’s behalf.
In 2025, with the digital transformation of property transactions, many agents like Jim routinely update their agreements to reflect modern practices and legal standards. Keeping your contract current helps ensure compliance with evolving consumer guarantee regulations, which you can explore further here, and provides added protection for your earnings.
Get In Touch
If you’re a sales agent who purchases property or goods such as cars for your clients, it’s important to ensure that you have a Sales Agency Agreement in place.
If you need an agreement drafted or require further legal support for your sales agency arrangement, don’t hesitate to contact our friendly team at [email protected] or call us on 08081347754 for a free, no‐obligation chat. You might also consider checking out our contract review and redrafting service for additional assistance in keeping your legal documents robust and up‐to‐date.
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