Deed Of Variation to the Authority -Selling Price

Hello, my apartment has been on the market for a few months. The estate agent would like me to sign a 'Deed Of Variation to the Authority -Selling Price' with a lower sell price specified. A price lower than i have previously told them i would accept.

If i sign this authority and I get an offer at the price specified on the form, will I then have to pay Real estate agent commission whether i accept the offer or not.

Thanks

E

 

you are asking us to interpret your contract for you without seeing the terms of the contract.

If the contract says commission is payable on an offer then yes.
If commission is only payable on an entered contract then no.
If commission payable on a settlement then no.

 

Why do you have to sign another form?

Don’t sign anything you are not fully happy with. Ask the agent to amend the selling price to one you nominate.
Marg

 

Or switch agent

 

Many thanks, I am selling in Victoria, and have signed a 'standard REIV' contract.


I am prepared to lower my advertised price. But the agent insists that a deed of variation is signed before that they will lower the advertised price.

If the Deed Of Variation form is not required, and i can simply tell them to lower the advertised price, why is the agent insisting a new signed DoV form? There must be another angle?

I have searched online for information about the DoV form. Cant find any information.


Many Thanks, Evan

 

From: Understanding property prices

'It is illegal for an agent to advertise or advise you of a price that is less than:

• the seller's auction reserve price or asking price
• a price in a written offer already rejected by the seller on the basis it is too low, or
• the agent's current estimate of the likely selling price.'

Based on the first of those bullets, your agent would be acting illegally if they told buyers a price that was lower than your asking price, which it sounds like is listed in the agent's authority. The real estate agent wants this DOV to amend the agency authority you've given them, to protect themselves from an accusation that they're underquoting by quoting the new, lower, price.

I doubt it affects when commission is payable, but none of us can say for sure without reading all the original documentation. Why not ask your agent to confirm via email that commission is only payable once the house has sold?

 

Thanks for taking the time Perp. Very helpful.