Private buyer query

From: Felicity W.


Hi everyone
I have a property to sell, and a friend of ours has shown interest in buying it. Problem is, they're not really ready to make a decision yet, and it could be a while before they are.
In the meantime, I'm going to list it with a real estate agent.
What happens if my friend ends up wanting to buy it after I've listed it? This is assuming the agent hasn't found a buyer in the meantime.
Keep smiling
Felicity :cool:
 
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Reply: 1
From: Duncan M


With a Standard Agency Agreement in all states, the agent would get his
commission from your sales price.

Nothing stopping you from taking a pen to the standard agreement when you
sign one though and writing your own clause specifically excluding your
potential buyer.. But potentially most agents may not want the business
given that it could be taken from under their nose at any time.


Regards,

Duncan.
 
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Reply: 1.1
From: Asy .


Hi Felicity,

If you are in Vic, you can sign an exclusive agency agreement, if you like, but specifically exclude the clauses which state that you must pay the agent if you sell the property privately.

There are 4 different types of agency agreements available in Vic:
The exclusive agreement, where irrespective of who sells the property, the contracted agent gets a commission if the property sells within the agreed time, and this agreement also ENDURES after that date unless specifically terminated in writing.

The Sole agency agreement (VERY rare), this is like an exclusive agreement with an agent, but if the vendor sells the property themselves they do not have to pay an agent. This is the agreement you want, but no-one carries them any more, because they are so very rarely used, the method I mentioned initially will have the same effect.

The general agency agreement, where the agent only gets paid if THEY introduce the buyer. You can sign as many of these with as many agents as you like.

The auction authority, which essentially is an exclusive agreement, with an auction.

One thing I will ask, PLEASE PLEASE PLEASE, anyone enquiring on Real Estate matters, especially property law, and agent enquiries, please tell us what state you are in, as the legislation is slightly different in each state.

Sorry about the ramble, but hope that helps, feel free to ask any other Q's which might be needed to clear this up...


asy :eek:)


"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
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Reply: 1.2
From: Boyler Room


Felicity,

I'm not sure where you are from but in Victoria there is more than one type of Authority. Most agents will only use an Exclusive Authority because they get their commission regardless of who introduces the buyer to the property. There is a General Authority that means they only get commission if THEY sell the property. You can sell the property to your friend and not have to pay commission.

Hope this helps.

Boyler Room
Co Ordinator for ADL Freestylers
 
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Reply: 1.2.1
From: Felicity W.


I'm in Victoria, but the property is in Brisbane.
Keep smiling
Felicity :cool:
 
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Reply: 2
From: Geoff Whitfield


Would it be worth a lease option?

He pays you for the right to buy it at a predetermined price in x months. You collect cash now for the privilege; if he changes his mind, you keep his cash and sell the property.

I've ordered, but have not yet collected, the "Lease Options Handbook" from www.creativerealestate.com.au - other people may be able to give real life opinions of whether its possible or worth it. You may get to have your cake and eat it this way.
 
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Reply: 2.1
From: Felicity W.


Thanks for the answers, I had considered wrapping/lease option but I've decided against it for various reasons.
Keep smiling
Felicity :cool:
 
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Reply: 2.1.1
From: Jason C


Hi Felicity,
Where in brisbane is your property and how much are you looking at selling for?
Jason
 
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Reply: 2.1.1.1
From: Empy 555


have the agent write on the agency agreement

"vendor has the right to sell at no commission to the agent"

they will do it !!

if u sell it 2 your mate then you pay no commission !
 
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