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Conflicts of interest- Selling Agent

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

  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
     
  2. Be Developer

    Be Developer Property Developer Business 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
  3. Gibson

    Gibson Well-Known Member

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    Thanks Be. Isn't OFT a toothless tiger? @bedeveloper
     
  4. andrew_de_a

    andrew_de_a Active 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.
     
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  5. andrew_de_a

    andrew_de_a Active Member

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    Why would that need to to be disclosed?
     
  6. Be Developer

    Be Developer Property Developer Business Member

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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
     
  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.
     
  9. Be Developer

    Be Developer Property Developer Business 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.
     
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  10. sanj

    sanj Well-Known 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?
     
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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?
     
  12. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business 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.
     
  13. Perp

    Perp Well-Known Member

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

    Gibson Well-Known Member

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    Thanks for your responses cheers
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA 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
     
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