What do you think of this clause?

[Tim]

Hi,

Contracts are about to exchange.......

before I talk with my conveyancer I wanted to get some ideas on this clause: I just don't know if I like it as it seems to make claims out of my control (potentially) as the purchaser (NSW contract)

"The purchaser warrants that no other real estate agent other than LJ Hooker has introduced you to the property. If for any reason another agent makes a claim for commission you shall indemnify the Vendor in respect of such as claim".

The thing is the property was advertised on 2 agents websites on RealEstate.COm (not LJ hooker), so when I contacted one of them they met me there with an agent from LJ Hooker who then left me with the original person I had contacted.

The other thing is they have the clause about land tax adjustment for 2007. This would be about $200 at most, is it reasonable I pay this for 2007, even though they would be technically liable before settlement in normal course anyway.

Thanks,

Tim

 

[JoannaK]

the vendor is trying to cover his back side...i would have that clause removed given that it was advertised on 2 agent websites.

land tax is reasonable absolultely. the vendor should not be paying land tax for 2007 when he's sold it at the beginning of 2007; it will be adjusted so that the vendor pays only for those days of 2007 that he's owned the property, and you'll pay for the rest of the year.

 

[Tim]

Thanks Joana,

I am having the agent clause removed -

Tim

 

[jrc]

That is an iniquituous clause. Was it in the draft contract the agent had? The Vendor knows who they have listed the property with and the terms of those listing contracts. It also would appear to cover any agent making a claim whether they had a contract with the Vendor or not.