Conflicts of interest- Selling Agent

Discussion in 'The Buying & Selling Process' started by Gibson, 27th Jul, 2015.

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  1. Gibson

    Gibson Well-Known Member

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    Just wondering how hard is it to pursue an agent in NSW if it is found they have not disclosed a beneficial interest in a property they are selling.
    Hypothetical - agent acting for a colleague or colleagues spouse. Does this need to be disclosed ?
    Cheers
     
    Gibson, 27th Jul, 2015
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  2. 380

    380 Well-Known Member

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    @Gibson

    Agent must disclose any conflict of interest.

    If not disclosed, it can be reported to OFT.
     
    Last edited: 27th Jul, 2015
    380, 27th Jul, 2015
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  3. Gibson

    Gibson Well-Known Member

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    Thanks Be. Isn't OFT a toothless tiger? @bedeveloper
     
    Gibson, 27th Jul, 2015
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  4. 738

    738 Well-Known Member

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    What does it mater of an agent is representing a colleague in a sale????

    Only if they were buying off a colleague would it be deemed a conflict.
     
    738, 27th Jul, 2015
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  5. 738

    738 Well-Known Member

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    Why would that need to to be disclosed?
     
    738, 27th Jul, 2015
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  6. 380

    380 Well-Known Member

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    380, 27th Jul, 2015
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  7. Gibson

    Gibson Well-Known Member

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    Thanks Be!
    Am interested in Section 50 and what it may mean
    Further hypo- Agent (who is director of real estste) selling property of the spouse of co-director. Spouse has a trust which shares the same registered address as the Director of Real estate.
    Nothing disclosed in the advertisement but there should be at least an upfront disclosure, in good faith
     
    Gibson, 27th Jul, 2015
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  8. Perp

    Perp Well-Known Member

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    That's not a conflict of interest; it's the opposite - it's a coincidence of interests.

    The agent is duty-bound to act for the seller. It sounds like you're saying they have extra incentive to do the right thing by the seller. That's none of a buyer's business.
     
    Perp, 27th Jul, 2015
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  9. 380

    380 Well-Known Member

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    Hmmmm....hard to comment, but if in doubt, best to ring OFT.

    If it is agents own property or related parties, must display "Agent's interest" in most marketing material.
     
    380, 27th Jul, 2015
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  10. sanj

    sanj Well-Known Member Premium Member

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    I'm genuinely curious about what it is here that you have an issue with. The agent is meant to be acting in the sellers best interest anyway so what's different here?
     
    sanj, 27th Jul, 2015
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  11. Azazel

    Azazel Well-Known Member

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    If there were selling your place to their relative, maybe a conflict of interest.
    I don't understand either, they're going to sell for more?
     
    Azazel, 28th Jul, 2015
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  12. DaveM

    DaveM Well-Known Member

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    A conflict would be the agent selling their own and not declaring agents interest. Having a colleague sell instead of the owner agent is the correct way to do it.
     
    DaveM, 28th Jul, 2015
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  13. Perp

    Perp Well-Known Member

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    That wouldn't be a conflict, either - that would be an alignment of interests. :)
     
    Perp, 28th Jul, 2015
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  14. Gibson

    Gibson Well-Known Member

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    Thanks for your responses cheers
     
    Gibson, 28th Jul, 2015
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  15. Terry_w

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

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    Best to have a look at the law then
    http://www.austlii.edu.au/au/legis/nsw/consol_act/psabaa2002385/s50.html
     
    Terry_w, 28th Jul, 2015
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