Tenants purchased property - what is fair compensation for the agent
- Thread starter alexg
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Gotta keep your eye out for the clause in the sale agreement that states the agent is entitled to his commission if the contract exchanges but doesn't go to settlement.
Which basically means you ahve to pay commission but your house doesn't sell. Great!
I have come across it a couple of times and had it deleted, sometimes grudgingly.
Which basically means you ahve to pay commission but your house doesn't sell. Great!
I have come across it a couple of times and had it deleted, sometimes grudgingly.
The agent has being paid to introduce the tenant to you in a leasing arrangement. You now know this tenant and you do business directly with them.
However you also pay the agent to manage the property on a ongoing basis. (which was an optional service)
If the tenant wants to buy something from you, then there is no reason for you to pay the agent a fee to sell the property as you never requested this service from them or agreed upon it.
If the agent introduced someone else to you who wanted to buy the property, then I accept you should pay a commission, however since you already have a relationship with the tenant, its none of the agents business how that relationship transpires. The agent doesn't hold the rights to your property's sale just because they manage it.
Will the agent also ask commission from each tradesman they call out to do repairs on your property? No. Management rights dont = selling commission
However you also pay the agent to manage the property on a ongoing basis. (which was an optional service)
If the tenant wants to buy something from you, then there is no reason for you to pay the agent a fee to sell the property as you never requested this service from them or agreed upon it.
If the agent introduced someone else to you who wanted to buy the property, then I accept you should pay a commission, however since you already have a relationship with the tenant, its none of the agents business how that relationship transpires. The agent doesn't hold the rights to your property's sale just because they manage it.
Will the agent also ask commission from each tradesman they call out to do repairs on your property? No. Management rights dont = selling commission
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Correct me if im wrong.. but there WASN'T a sale agreement
If this is so, I will repeat over and over for dramatic affect
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
NO AGENCY AGREEMENT FOR THE SALE OF PROPERTY = NO LIABILITY
THE AGENCY HAS NO RIGHT TO YOUR MONEY. end of story.
I was just about to post exactly that while listening to a real estate agent on the radio. Someone rang in with this very question! And the Real Estate Agent said that there were several elements required to conduct a lawful sale transaction, and if there is not a proper Agency Agreement in place then the seller does not have to pay any commission, advertising, nada!
I think it is quite funny, now that the market is much more difficult to sell in, that Agents are whinging about how hard they have to work. Before, it was a matter of getting the person to sign the contract to sell, organising (others) to write the advertising and getting the customer to pay for it (while ensuring their Logo was prominently displayed); holding one or two open inspections, and then signing off on the contract. Wham Bam $10,000 thank you very much! For maybe a day's work. Then the conveyancer did all the hard work.
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