hi
can anyone tell me the legal requirements for acting as a buyer's agent please? i realise that you need to be licensed to act as a real estate agent but do you still need to be licensed to act for buyer's?
also, any clues on what sort of indemnity insurance would be needed/advisable?
thanks all
Licensing requirement is either a buyers agent license or a full real estate license. Obviously if you only do the buyers agent license you are restricted to just that.
The office of fair trading for the state you do your qualifications will license you. BUT you can apply to other states for a license there showing your qualifications from your state. This allows you to find people property all over australia.
Indemnity insurance, as PU has mentioned is important. For starters I did something simple like 10M public liability and 1M professional indemnity (per case / 2M in the aggregate) is fine.
This cost me around 2 grand including the public liability.
I use coverforce who underwrite for Vero Insurance. The benefits I found were (copied direct from email)
"
- Costs in addition Limit – this means that the Limit of Indemnity is not eroded by defence costs; defence costs are paid in addition to the Limit of Indemnity
- Free 7 year run-off period – should you sell or close your business down, this policy will be extended for 7 years free of charge, thereby providing you with run-off protection post cessation which is extremely important given the “claims made” nature of Professional Indemnity insurance.
NOTE: run-off provided by other insurers is charged for each year and can accumulate to the equivalent of approximately 4 years worth of premium. The Vero policy therefore provides a significant financial benefit in the event of sale/cessation.
The cessation of a business can be planned and it can be unexpected. The untimely death of a partner, the falling out of partners etc can result in changes to legal structures/entities. When this occurs, the “old” entity should go into run-off and the “new” entity should start a new policy, effectively drawing a line in the sand. With the Coverforce/Vero policy this “drawing the line in the sand” process has never been easier or more affordable!
Comprehensive policy extensions/benefits:
1. Principals’ Previous Business
2. Libel or Slander
3. Contractual Liability
4. Dishonesty of Employees
5. Trade Practices Act
6. Intellectual Property
7. Continuous Cover
8. Lost Documents
9. Inquiry Costs (sub-limit $100,000)
10. Automatic Reinstatement
11. Joint Venture Liability
12. Seven Year Run-Off Period
13. Franchisor’s Indemnity
14. Fidelity (sub-limit $50,000)
15. Sub-contractor and consultants (vicarious liability only)
16. Worldwide Territorial Limits excluding North America
17. Worldwide Jurisdictional Limits excluding North America
18. Full limit bodily injury arising from a breach of professional duty
"
THIS IS NOT INSURANCE ADVISE ALWAYS SEE A PROFESSIONAL INSURANCE ADVISER, BEFORE YOU MAKE ANY DECISION ON WHAT YOU NEED / WANT / AFFORD
