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ARTICLE · 15 SEPTEMBER 2020

Agent commission claims

Disputes over claims for commission require examination of the exact words in the contract and circumstances re cause of sale.

AustraliaCorporate/Commercial Law

We have acted for vendors in a number of Court disputes concerning whether a NSW real estate agent is entitled to commission following a sale.

Problems commonly arise where an original agency agreement expires, or is terminated and another agent achieves the sale of property. If the vendor sells to a party that the original agent claims he "introduced", that agent may have a claim for commission and the vendor may be faced with paying 2 commissions.

On 3 September 2020 the NSW Court of Appeal gave a judgment on this issue: Outerbridge v Hall (Outerbridge). A day later the WA Court of Appeal gave a judgment on a boat sale commission dispute. This has prompted us to revisit this topic.

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