An exclusive agency agreement is a legal contract where a vendor appoints one agent to sell their property for a set period, typically 60–90 days in Melbourne. The agreement must itemise all Vendor Paid Advertising (VPA) costs and state the commission amount alongside an equivalent dollar figure. Vendors have a 3-day cooling-off period after signing to withdraw without penalty.
This contract defines the professional relationship and the marketing strategy for the duration of the exclusivity period. While the core provisions are standard, specific terms regarding termination remain negotiable.
The exclusivity period
In Melbourne, these agreements typically run for 60–90 days. This window ensures the agent can execute a coordinated campaign without competing agents undermining the price guide.
Commission and marketing costs
The contract must clearly state the commission amount and include an equivalent dollar figure. All Vendor Paid Advertising (VPA) costs must be itemised in the agreement to ensure transparency regarding upfront expenses.
Cooling-off and termination
Victoria provides a 3-day cooling-off period after signing, during which a vendor can withdraw from the agreement without penalty. While not standard, a confident agent may agree to a termination clause allowing the vendor to end the contract with 7 days’ written notice.
The termination negotiation
The right to terminate an agreement with short notice is not a standard provision. Vendors often struggle to determine if an agent’s refusal to include a 7-day termination clause is a sign of confidence in the result or a rigid business policy.
Frequently asked questions
How long is a standard agency agreement in Victoria?
In Melbourne, the exclusivity period for a sales authority typically ranges between 60 and 90 days. This timeframe provides the agent with sufficient time to implement the marketing strategy and manage buyer interest before the agreement expires or requires renewal.
Can I cancel my agency agreement after signing?
Victorian law provides a 3-day cooling-off period immediately after the agency agreement is signed. During this window, a vendor can withdraw from the contract without incurring any penalty. Beyond this period, the ability to terminate depends entirely on the specific clauses negotiated within the signed agreement.
What must be included in the commission section?
The agreement must clearly state the commission amount and provide an equivalent dollar figure. Additionally, all Vendor Paid Advertising (VPA) costs must be itemised so the vendor knows exactly what marketing expenses they are committing to before the campaign begins.
Is a termination clause standard in Victoria?
A clause allowing the vendor to terminate the agreement with 7 days’ written notice is not standard in Victoria. However, it is a point of negotiation. Senior agents who are confident in their ability to deliver a result may agree to this specific term.
Questions to ask your agent
- Will you agree to a 7-day written notice termination clause in the agency agreement?
- How does your proposed price guide align with the reserve price to ensure compliance with Victorian underquoting laws?
- Can you provide a full itemised breakdown of all VPA costs before I sign the authority?
This article contains general market information based on data current as at April 2026. It does not constitute financial, legal, or real estate advice specific to your property or circumstances. For an appraisal and tailored advice, speak with a Fletchers agent in your area.