Exclusions in the Sale contract

[Aneroc]

I would like some advice with regard to the viability of placing an exclusion on a purchaser that I have sourced and been negotiating with prior to signing with a R/E agent.

We intend to sign with an agent and proceed to auction, however would like to know if it is reasonable to think that if this buyer bids and is successful the agents’ commissions could be negotiated as exempt. Is this reasonable or does this sort of exemption only apply to For Sale contracts?

We are yet to sign with an agent and the buyer I am dealing with is being delayed to some extent, hence the auction process and the exemption.

Thanks

 

[wylie]

We have twice had a personal acquaintance interested in buying a house we were selling, and each time we made a note in the sales agreement that if "Mr Smith" purchases the house, no commission will be payable. We have had no problems with this. In each case, the nominated potential purchaser was not the eventual buyer, but it is worth doing if it is at all possible that someone you know could be the purchaser.

I wouldn't think it would be any different for an auction.

 

[marg4000]

When we sell we always go for a "sole" agency.

The RE agent always ticks the "exclusive" box on the contract, but changes it when we protest.

The difference is that with a sole agency we don't pay commission if we source the buyer - unlikely, but you never know when a friend of a friend will come out of the woodwork. With an exclusive agency the RE agents gets the commission regardless.

Not sure with auctions...
Marg

 

[Perp]

I don't know what the legal position is, but ethically, I don't think it's reasonable to ask an agent to put on an auction, where they may or may not receive a commission from a sale that they "create" for you.

You also create a bizarre situation where the agent a vested interest in who "wins" the auction process. Your best interests may conflict rather than coincide with the agents', and that's never smart.

You could possibly get an agent to agree to hold an auction with a condition that if you sell by private treaty more than a week prior to person X (for example), that no commission is payable. But once you go to auction, I think it's both in your best interests and reasonable that you pay commission.