HOMEOWNERS are being reminded to read the fine print before switching real estate agents mid-sale, with industry experts warning that a practice known as “sign jumping” could create serious legal and financial complications.
“Sign jumping” happens when an agent contacts a homeowner whose property is already listed with another agency and tries to persuade them to switch.
The agent may promise better buyers, faster results or suggest the current agent isn’t up to the job.
While not against the law, the practice is considered unethical and, for sellers, potentially very risky.
The Real Estate Institute of Queensland (REIQ) has clarified the risks, stating that “in circumstances where a sign jumping agent induces a seller to breach an existing agency appointment, the seller could potentially be liable for two commissions and the original sales agent may be able to bring a claim against the sign jumping agent for the tort of contractual interference.”
Industry professionals caution that the best safeguard is understanding your obligations before making any decisions.
“Sellers should always clarify their position with their appointed agent or seek legal advice from a solicitor before considering a change,” one property advisor said.
“A quick conversation up front can prevent costly mistakes later.”
When listing a property, an agent should clearly explain the type of agreement being signed and what it means for the seller.
Homeowners can also ask whether the agent is prepared to “conjunct” with another agency. In a conjunction, the selling agent arranges an agreement with another agent to introduce a buyer, and the two agents share the commission between themselves.
Importantly, the homeowner still only pays the standard commission amount already agreed to – not more. If another agent contacts you during the listing period, the safest step is to always direct them back to your appointed listing agent, who will handle all negotiations on your behalf.
Industry bodies also remind agents that professionalism matters. This includes avoiding interference with the listings of other agents or making any derogatory and potentially defamatory comments about competitors.
Disclosure: This article is for general information only and does not constitute legal advice. Homeowners should seek independent legal or professional advice tailored to their circumstances before making decisions about agency agreements.
