Agent Authority & Commission

From: Ian Parham


Good Afternoon Forumites!

Having just done a search for previous forum discussion on Agents, Commission, Bypassing Agents etc....I am seeking further information pertaining to:-

How long can an agent reasonably claim rights to any commission on a private sale after the period of Agency Authority has expired? (South Australia)

That is, if an arrangement has been made with a vendor about a possible private sale after the expiration of the Agency Authority...when would the agent no longer be able to pursue the individuals for commission?

Background info: awareness of property being on market comes about through word of mouth from friends...haven't actually been made aware of property being listed with an agent at the time. No agent's signage on property....contact vendor for a chat, all very innocent ;>)

Vendor later indicates property is listed with an agent but Agency Authority is due to expire soon, and indicates interest in private arrangement after that point.

I have heard periods varying from 30 days to 120 days after expiration as being applicable????

Thanks in advance for all input!

Cheers Ian
 
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Reply: 1
From: Gidget .


Hi Ian,

The vendor will need to check the 'fine print' on the contract he/she signed with the agent. I'm far from an expert on this stuff, but you might find the agent is entitled to commission on the sale to any buyer introduced to the vendor during the term of the agreement even if he didn't actually introduce the potential purchaser to the vendor (I know that sounds unfair). Again, you'd really need to look at the terms of the contract between the vendor and the agent. You could also try calling the Real Estate Institute in your state and asking a 'general' question (anonymously of course). Be aware though that they have the agent's interests in mind.

Gidget.
 
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Reply: 1.1
From: Paul Zagoridis


And in NSW most contracts to purchase now have a special condition where the buyer indemnifies the vendor for any claims for commission.

So make sure your purchase contract doesn't have similar provisions. Therefore disclose fully to your solicitor and have them look after your interests.

Actually it would be worth a chat to your lawyer now. The conversations should begin "how do I achieve this desired outcome".

Paul Zag
Dreamspinner
Oz Film Biz is at
http://www.healey.com.au/~paulz
 
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Vendor Claims for Commission

Reply: 1.1.1
From: Matthew Campbell


This is a multi-part message in MIME format.

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I was wondering if Paul Z would be able to expand on what is written =below.

"And in NSW most contracts to purchase now have a special condition =where the buyer indemnifies the vendor for any claims for commission.
So make sure your purchase contract doesn't have similar provisions. =Therefore disclose fully to your solicitor and have them look after your =interests. "

Also, knowing that you are in Sydney, have you used a solicitor in =Sydney for your wrap deals or a solicitor in the states you wrap in?


Regards

Matthew Campbell



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I was wondering if Paul Z would be able =to expand
on what is written below.

"And in NSW most contracts to purchase now have a special condition =where
the buyer indemnifies the vendor for any claims for commission.So =make sure
your purchase contract doesn't have similar provisions. Therefore =disclose fully
to your solicitor and have them look after your interests. "

Also, knowing that you are in Sydney, =have you used
a solicitor in Sydney for your wrap deals or a solicitor in the states =you wrap
in?


Regards

Matthew Campbell


------=_NextPart_000_00C3_01C124E6.010D2040--
 
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Vendor Claims for Commission

Reply: 1.1.1.1
From: Paul Zagoridis


Ugh Matthew, you may want to edit your post on the forum. It's a huge nasty MIME.

When I say "most contracts" it should add "that I've seen".

Sydney lawyers love special conditions to fix perceived shortcomings in the standard contract. The are also taking recent case law into account.

On such special condition I've seen in every contract over the last few months is one where the buyer warrants and indemnifies the vendor that they have not been introduced to the property by any agent other than the one named on the cover. If an agent comes forward with a claim for commission to the vendor they point them to the buyer.

If you do an end run around the agent (e.g. with an expiring listing), make sure your lawyer knows about it. They should then ensure you are not liable for a later claim for a commission.

For wraps I use solicitors in each state. They are an investment not a cost (once trained). Having said that I prefer lease options at the moment (in NSW and Vic), most of my buyers aren't eligible for FHOG so it's easier.

Paul Zag
Dreamspinner
Oz Film Biz is at
http://www.healey.com.au/~paulz
 
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Vendor Claims for Commission

Reply: 1.1.1.1.1
From: Ian Parham


Hello Again Forumites

Thanks for the feedback.

Spoke with my conveyancer in Adelaide today. She indicated a period of 60 days after expiration is the norm; that is unless there are special conditions in a contract.

After this time the agent has no right to chase commission if the vendor wishes to make other contractual arrangements (but as was mentioned in an earlier post, if there's a substantial sum involved, the buggers would probably go to extremes to pursue commission regardless).

I would of course consult my solicitor anyway

Cheers Ian
 
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