Real Estate Agent requires a Deed to be signed in addition to the REIV contract

Discussion in 'Legal Issues' started by Apprentice, 4th Oct, 2019.

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  1. Apprentice

    Apprentice Active Member

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    Hi,

    We engaged a real estate agent to sell a property for us, then just before commencement of marketing, we are presented with a Deed to sign, which states 1. All marketing expenses to be paid up front 2. In the event that the marketing expenses are not paid, it gives them the right to put a caveat on our property.

    This was not discussed nor disclosed when we signed the REIV contract weeks ago.

    Is this standard practice?
     
  2. shorty

    shorty Well-Known Member

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    Tell them to take a long walk off a short pier.
     
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  3. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    A REIV contract and / or marketing plan is required to indicate the fees and commission for selling or not selling and any marketing costs. Re-read it. Then consider taking your complaint to Vic Consumer Affairs or seek legal advice. You may need to consider termination of the agency contract to relist elsewhere to avoid two fees.
     
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  4. Apprentice

    Apprentice Active Member

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    We would like to terminate their services but as you have stated do not want to incur double fee payment. Dont know what is involved in terminating a contract or how to go about it.
     
  5. Terry_w

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

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    Why would you agree to that variation of your original contract? I would consider terminating the contract - depending on the terms.
     
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  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    I took an agent to the NSW tribunal and they ordered it terminated when they refused to agree to do so voluntarily and wanted me tied up for XX weeks. Grounds in my case was based on misleading representations. Hearing took minutes. Consumers dont need to evidence much but the agent does... A few months later they got done for trust fraud. Dodged a bullet and new agent sold for much more and super fast.
     
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  7. Apprentice

    Apprentice Active Member

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    We have not agreed to any variation . The agent told us that it is company policy that this deed must be signed at the same time as the Contract but that it was an oversight on his part. We would not have proceeded with the contract if this had been disclosed.
    Will look at the terms of the contract? What in particular should we be looking for? Thanks
     
  8. Apprentice

    Apprentice Active Member

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    They have agreed for us to terminate but have asked us to put it in writing. I am just not sure whether they can still pursue us for loss of commission??
     
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  9. balwoges

    balwoges Well-Known Member

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    Go see your solicitor ... :)
     
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  10. jim1964

    jim1964 1941

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    [QUOTE="Apprentice, post: 744696, member: 16627"
    Is this standard practice?[/QUOTE]

    No,not standard here in SA.If in agreement at the time of agreement with vendor and agent signing it may ask for a up front percentage to cover some costs, but not very often.
     
  11. jim1964

    jim1964 1941

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    At this point have a real good read of the fine print, they are not going to just walk away here.
     
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  12. Terry_w

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

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    Just refuse to sign it. What if it was their policy that you must wear yellow shoes when signing? So what!
     
  13. Apprentice

    Apprentice Active Member

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    We have refused to sign it . The agent has refused to initiate marketing to sell the property. We are at a stale mate. Hence our suggestion to terminate the contract.
     
  14. Terry_w

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

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    They are probably in breach of the contract by refusing to market it.
     
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  15. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Terminate the contract v not enforce it?

    Was there ever a contract?