Buyers agent contract

Discussion in 'Investment Strategy' started by Sam_rwd, 26th Nov, 2019.

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  1. Sam_rwd

    Sam_rwd Member

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    Hi All,

    Thinking of using a Buyers agent to buy an investment property interstate. Would you recommend that the contract be reviewed by a solicitor (as advised in the actual document)? I have got a quote of $300 to do this. Does this sound reasonable? Do people normally do this (those who have used a Buyers agent before)?
    Are there any particular words, clauses that one should watch out for? Thanks in advance.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Do you know how to read a contract and what to look for? If not a lawyer should be used. Even if you do a lawyer should be considered.
     
  3. Kanpan

    Kanpan Member

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    Any good buyers agent in Brisbane who actually know what they are doing?
     
  4. Jacque

    Jacque Jacque Parker Premium Member

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  5. Matt Campbell

    Matt Campbell New Member

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    I've been thinking about using a buyers agent to buy and investment property also. If you are time poor then using one could be perfect. A couple of things worth considering... if you sign the contract do you have to buy a property through the buyers agent as opposed to one you find yourself? Signing the contract with the buyers agent doesn't commit you to purchasing a property they find. All things considered, you're buying an investment property to make money whether it's through positive/negative gearing and/or capital growth. $300 is a small price to pay.
     
  6. My House QLD

    My House QLD Well-Known Member

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    Most if not all Buyers Agents will have in their contract that if you purchase a property in the same area the fee will still be payable.
     
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    But would such a clause be enforceable?
     
  8. Daniel T

    Daniel T New Member

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    Does anyone have any buying agent recommendations??
     
  9. RS Gumby

    RS Gumby Well-Known Member

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    Which state?
     
  10. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Most BAs I know take a quick look at the various legal documents relevant to the state they're buying in. They know the obvious red flags. However you should still get the contracts reviewed by a licensed conveyancer or solicitor. There are plenty of problems that won't be picked up by a BA, no matter how good they are.


    Given these contracts are written by solicitors and the fee charged probably isn't the full BA fee, would it be worth the cost of challenging it?


    Where do you want to buy?
     
  11. Daniel T

    Daniel T New Member

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    I don't have a specific property in mind, but most likely Melbourne, Sydney, Adelaide, Brisbane. The major cities where I need to find the right investment.
     
  12. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    My observations of some of the larger BA businesses is their results are good, but I've seen better with the smaller, local businesses. However the large BAs do have an advantage that they can give you options across multiple locations.

    If you can figure out more specifically where you want to purchase, myself and others can share experiences with individual BAs who are fantastic. I've had clients purchase via BAs in each of the locations you mention and I've bought some property myself in some places via a BA.
     

The shift to the regions has been quite profound with Millennials and Gen X leading the way. It seems affordability, lifestyle, and working from home have been the key drivers from which these generations have been able to take most advantage.