Impact and issues on investing if you hold REA license or BA etc

Hi All,

Just thought I would start a thread on what potential issues may arise if an investor starts to hold a REA license.

As a buyer, do you need to disclose you hold a license if buying IPs for yourself or a partner.

As a seller, I guess in your own state your now going to have to disclose even if your selling your own or a related parties IP through a mechanism like Buymyplace.

What are your thoughts or experience ?

 

Unless you are the selling agent and you own the property you don't have to disclose.

As a buyer you only need to disclose if you're buying on behalf of another ie as buyers agent

 

So as a buyer of own or related parties IP's, carry on, no change (I wonder if it may help or hinder if it was mentioned).

As a seller, this may be tricky, probably better to disclose it anyway, or is it only strictly required when selling through the agency that uses your license ? So buymyplace type setups would avoid this ? I see no real downside in disclosing this anyway.

 

In Victoria if you are a licensed real estate agent or agents rep (ie employed by a licensed agent), then you are not entitled to a cooling off period.

From this page; Contracts and disclosure statements – estate agents - Consumer Affairs Victoria

 

Yes, was going to say this too. Though the vendor/agent would have to be aware.

 

Not necessarily. If you were just the buyer (ie not the selling agent) and the vendor didn't know you were an RE, if the stakes were high, the legal rep for the vendor might do a wee search on you the purchaser and say oh wow, look at this, the buyer is an RE. No cooling off period for you.

 

True. It's possible. I would try to use it in my favour though. I.e here is my final offer and by the way as a LREA I have no cooling off period so if you accept my offer that's final unlike any other offers on the table.

 

True if you had no finance clause or any other special conditions protecting you such as building and pest, due diligence etc. It's only the cooling off period you are not entitled to.

 

There is something like that in NSW as well, but I think it is more aimed at an agent who wants to buy a property the agency is selling, you also must pay full asking price (not sure what happens if is a range or no price, probably what is on the agreement), but that would not apply if you are not somehow connected to the transaction .

So are you 100% sure it applies to anyone with an agents license but not of the same agency ?

And then, should I assume it can't cross borders if they do specify all agents.

 

In NSW as a full RE licence holder you cannot buy a listing your selling agency has UNLESS you fill in a Section 49 disclosure AND you pay full price as determined by a registered valuer AND you do not charge the vendor any selling commission.

As a seller you have to advertise "agent declares an interest".

As a buyers agent (not needing to hold a full RE license) buying, you don't have to disclose anything to the vendor.

 

Hi Alan, will stick with from a NSW REA license holder perspective for below.

Do you say this in regard to selling through the agency that has the license, or all sales ? If you as a person, hold a license, it would make sense to disclose no matter how you are selling even if you used buymyplace type setup ?

What do you believe if you hold a full RE lic as a buyer (not through own agency or from any client)

 

Yes

 

When you are selling your own property through the agency you are working for.

Possibly. It would not hurt.

You are a private citizen in this case.