Agent Disclosure?

Discussion in 'The Buying & Selling Process' started by DueDiligence, 9th Mar, 2020.

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  1. DueDiligence

    DueDiligence Well-Known Member

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    Hi,

    If an agent is selling their own property, are they obligated to disclose they are the owner ?
     
    DueDiligence, 9th Mar, 2020
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  2. thatbum

    thatbum Well-Known Member

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    I'm pretty sure they aren't.

    Why would it matter?
     
    thatbum, 9th Mar, 2020
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  3. DueDiligence

    DueDiligence Well-Known Member

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    I'm not sure it would.
     
    DueDiligence, 9th Mar, 2020
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  4. balwoges

    balwoges Well-Known Member

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    Yes, you are required to disclose if you have an interest in a property you are selling.
     
    balwoges, 9th Mar, 2020
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  5. noomi_nooma

    noomi_nooma Well-Known Member

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    I don’t think that is the case. How would that unfairly affect the buyer?
     
    noomi_nooma, 9th Mar, 2020
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  6. wylie

    wylie Moderator Staff Member

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    I'm not sure an agent must disclose initially, but certainly must at time of contract (unless things have changed). When we contracted through my mother (an agent at the time), the agent fees had to be disclosed separately and from memory the actual contract was a little different because the contract price had to show the fees payable to the family member, so were broken up into two figures from memory.

    I recall thinking that it would be important this is explained and they don't just look at the lower figure (without the agent fee added on).
     
    wylie, 9th Mar, 2020
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  7. balwoges

    balwoges Well-Known Member

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    The sales inspection form requires the agent to disclose for whom he is acting [owner of the property] ...
     
    balwoges, 9th Mar, 2020
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  8. thatbum

    thatbum Well-Known Member

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    And the owner might be: their company that they solely own; their legal name that they don't use as an agent; their trustee company that they are a beneficiary of; or any number of scenarios where the agent has a direct interest in the property that isn't immediately obvious looking at the owner's name.

    Do they then have to make any further special disclosure? Eh I don't actually think so.
     
    thatbum, 9th Mar, 2020
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  9. balwoges

    balwoges Well-Known Member

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    Its an offence for an agent not to disclose an interest in a property he is selling, that includes hiding his interest by using other vehicles as suggested above.
    That's not to say it cant happen, but the agent leaves himself open to legal action.
    I was a REA for over 35 years and it was a no no for any office where I worked ...
     
    balwoges, 9th Mar, 2020
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  10. thatbum

    thatbum Well-Known Member

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    I've noticed it seems to be office policy at quite a few places. But I haven't really seen what legal basis this policy stems from.
     
    thatbum, 9th Mar, 2020
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    An agent wouldn't disclose it for the fun of it, it is a requirement under the subordinate legislation PSBAA 2002.

    NSW legislation
    Refer: Part3 Div5 Sec50 (2) " A licensee who has a relevant interest in the sale of real or personal property must not in the course of carrying on business as an agent on the sale publish or cause to be published an advertisement relating to or in connection with the proposed sale of the property unless the relevant interest is disclosed in the advertisement"
     
    Scott No Mates, 9th Mar, 2020
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  12. thatbum

    thatbum Well-Known Member

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    Well that looks more like it actually. I wonder if there's similar in other states, because I can't see the policy reason for the legislation.

    Unusually it only seems to cover the licensees? So not the sales rep agents that work underneath? Also it doesn't seem to cover if the licensee is a trust beneficiary.
     
    thatbum, 10th Mar, 2020
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  13. Scott No Mates

    Scott No Mates Well-Known Member

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    Although it applies to the licensee for whatever reason, they usually extend the rquirement to their staff. In other cases, they fob off the sale to another agent or agency to avoid declaration.
     
    Scott No Mates, 10th Mar, 2020
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  14. balwoges

    balwoges Well-Known Member

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    Why wont you accept what's been set out in black and white for you?
     
    balwoges, 10th Mar, 2020
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  15. thatbum

    thatbum Well-Known Member

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    That's what the legislation literally reads as. Can you accept your own advice? And explain if those exceptions apply?
     
    thatbum, 10th Mar, 2020
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