Agent selling properties to friend

[TMNT]

Now I know there are laws against it, but how enforced and strict are they?

I have been told that a particular agent has been offloading a lot of his properties to a friend of a friend of a friend, and apparently the guy has bout 10 off him,

I personally dont believe it and its sour grapes for not getting a particular sale they wanted

 

[Propertunity]

Now I know there are laws against it, but how enforced and strict are they?

There are not laws against it, but there are rules and regulations around it, that have to be complied with. The Office of Fair Trading in each state are responsible for administering the regs. It does not apply to "friends" but more "close relatives" of the REA.

For example in NSW, the REA cannot claim a commission from the seller and must make a Section 49 disclosure etc.
http://www.austlii.edu.au/au/legis/nsw/consol_act/psabaa2002385/s49.html

 

[marg4000]

There is nothing wrong with it so long as both parties are aware of any personal connection between the agent and one of the parties.

It may be that the buyer is paying a fair price so the seller may be happy to have a quick and clean sale.

This can be an advantage of building a relationship with an agent.
Marg

 

[nhg]

It may be that the buyer is paying a fair price so the seller may be happy to have a quick and clean sale.

This can be an advantage of building a relationship with an agent.
Marg

Which is exactly what most of the investors on this forum do anyways.

 

[Paul@PFI]

An agent may well describe a investor they know as a good friend. Doesnt mean they are best buddies. Its probably more an embellishmnet of what is a strong commerial relationship. I have been called by agents I know well many times checking to see if I want first crack at what appears a great deal. A quick sale before advertising etc is ideal for all concerned.

Two months back an agent called and I want interested in the site as it was land only. I called a good mate of mine who is a developer finding it ard to find level wide sites suitable for 4-6 villa's. He bought it...A friend of a friend or a friend. I wouldnt call the agent a friend...But he is a good smart businessman.

 

[TMNT]

An agent may well describe a investor they know as a good friend. Doesnt mean they are best buddies. Its probably more an embellishmnet of what is a strong commerial relationship. I have been called by agents I know well many times checking to see if I want first crack at what appears a great deal. A quick sale before advertising etc is ideal for all concerned.

Two months back an agent called and I want interested in the site as it was land only. I called a good mate of mine who is a developer finding it ard to find level wide sites suitable for 4-6 villa's. He bought it...A friend of a friend or a friend. I wouldnt call the agent a friend...But he is a good smart businessman.

good point, but im sure this happens but,

some old lady calls up and says her hubby has died and she wants to get rid of her $600k house, but she thinks its worth $500k, and she just wants it gone,

seeing its a bargain at $500k, agent tells his friend (lets say cousin) and says, $500k, $100k instant equity, buy it now!!! before she wants to put it at auction where it will fetch $600k, do it before she catches on

 

[abbyfresh]

Any agent that works with you to secure an outstanding deal is a friend in anyones books, and if the seller knew what was going on then there would be no more friendship there.

 

[TMNT]

Any agent that works with you to secure an outstanding deal is a friend in anyones books, and if the seller knew what was going on then there would be no more friendship there.

we arent talking about agent being friends with the old lady!

the point was trying to sell it well below the market price so that you indirectly get it via using a friend/relatives name to purchase

ie the agent is looking after his own investment/profit interests, which is highly unethical

 

[Paul@PFI]

Every industry has its rogues and its sure to happen despite ethical rules. Some people do bad things when a $ is there for the taking. Politicians, lawyers, accountants, doctors etc all fill the courts for their various errors of judgement in the chase for money.

If they were an employee I'm sure other agents and the licensee would see it immediately. Those other agents want to sell that property for a share of the commission.

There a stacks of spruikers flogging overvalued property too. One state seems to have it as their state industry. If tourisms down the spruikers are out. When tourisms hot so are the spruikers.

 

[marg4000]

some old lady calls up and says her hubby has died and she wants to get rid of her $600k house, but she thinks its worth $500k, and she just wants it gone,

seeing its a bargain at $500k, agent tells his friend (lets say cousin) and says, $500k, $100k instant equity, buy it now!!! before she wants to put it at auction where it will fetch $600k, do it before she catches on

Highly unethical behaviour. And if an agent sells to a relative that must be disclosed to the seller.

This scenario is highly unlikely in these days of instant information via the internet. Most "old ladies" have relatives (often with expectations of an inheritance!) who will quickly put her straight regarding values.
Marg
(rapidly approaching "old lady" status - or maybe already there but in denial)