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Have you used a Buyers' Agent before? Is this a normal clause?

Discussion in 'The Buying & Selling Process' started by Catalyst, 29th Oct, 2015.

  1. Catalyst

    Catalyst Well-Known Member

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    Just before we sign on the dotted line to engage a Buyers' Agent...

    There's a clause in the contract which seems quite standard, but is it? Did you sign off on something similar in your contracts with your Buyers' Agents:

    "We acknowledge that the final decision for purchase of property is our own. Agent takes no responsibility whatsoever for the real property description, the condition of the improvements, the legal title, financial returns nor tenant stability. We also acknowledge that the Agent strongly recommends that the Client undertake a thorough personal inspection of the property and seek independent legal, accounting and other relevant professional advice related to the purchase..."
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Yep , that sounds pretty normal.

    They're basically saying they'll find something that fits the criteria you give them, but its up to you to decide if thats a good investment or not. You should also get a B&P of course.
     
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  3. HD_ACE

    HD_ACE Game-Changer Premium Member

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    Yes. Ultimately the onus is yours.
     
  4. Catalyst

    Catalyst Well-Known Member

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    Thanks @D.T. and @HD_ACE

    That clause was rather worrying, as we would only consider a Buyers' Agent as they have a lot more experience and experience in sourcing/buying properties.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    They are engaged to seek a solution, you have to ensure that what they have put forward meets your criteria. They can't guarantee performance etc. Ultimately, they remind you that it is your decision.
     
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  6. Big Will

    Big Will Well-Known Member

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    If they were to guarantee results their fees would be a lot higher as they would be taking on the risk.
     
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  7. Catalyst

    Catalyst Well-Known Member

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    Good point, @Big Will

    Thank goodness we are not asked to sign something similar when consulting doctors :eek:

    :D
     
  8. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    A totally unfair comparison :eek: Medical practitioners perform procedures every day that involve much higher risks but they still cover themselves (and rightly so) with consent forms prior to treatment or procedures. There are no guarantees.

    Example of an excerpt from a typical Patient Consent Form:

    Please read the information carefully and tick the following to indicate you have understood and agree with the information provided to you. Any specific concerns should be discussed with your doctor or proceduralist performing the procedure prior to signing the consent form. …
    *The doctor/proceduralist has explained my medical condition and prognosis to me.
    *The doctor/proceduralist also explained the relevant diagnostic treatment options that are available to me and associated risks, including the risks of not having the procedure. …
    *The risks of the procedure have been explained to me, including the risks that are specific to me and the likely outcomes.
    *I have had an opportunity to discuss and clarify any concerns with the doctor or proceduralist. …

    *I understand that the result/outcome of the treatment/procedure cannot be guaranteed.

    The clause above isn't a standard REINSW clause however without knowing where I can't comment on other states BA Agreements. Some BAs choose to use their own, rather than state based REI agreements, and that's fine. As long as you understand and agree with what you're signing, it's your choice. Best of luck with it all. I hope they find you a great property:)…
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    you are in a way - doctors make no guarantees about medicines working or results of performance of operations.
     
  10. Catalyst

    Catalyst Well-Known Member

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    @Jacque Nope, it was not an apple to apple comparison. Said in jest. Didn't mean to step on any BA's toes. Sorry

    What is the std clause in REINSW?
     
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  11. Scott No Mates

    Scott No Mates Well-Known Member

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    @Catalyst "27.03 (c) Bend over and smile"
     
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  12. Catalyst

    Catalyst Well-Known Member

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    Gosh! Buying an IP is even harder than I thought @Scott No Mates :eek::eek:

    :p
     
  13. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    Hi Catalyst
    REINSW have 2 versions- happy to shoot you a draft if you want to email me. Cannot put it up on a public forum though
     
  14. Mumbai

    Mumbai Well-Known Member

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    hmm .. getting the drift!