VPA Pay by Campaign Agent?

Anyone know why my real estate agent is asking me to pay my marketing expenses through a third party called Campaign Agent? I agreed to pay upfront but I am still required to sign an agreement with this third party. I don’t get what value they add if I am paying upfront? Apparently Campaign Agent offers payment on settlement but They then collect a finance charge of 6%.

 

We used this with fletchers. We paid up front but could be a win win for people that are cash flow poor and they make 6% interest in around 90 days

 

I've just used this on one of my property sales for $3k approx. It seems okay, the property hasn't sold. I just preferred to keep my cash for the duration. Can let you know more later. Here's their terms re payment. Noting they can take out a caveat for payment over your property if you don't pay... that's a bit serious but probably necessary for their business.

4.2 Fees and Charges 4.2.1 Service Fee

We charge a Service Fee of 4.0% of the Advertising Total where you elect to pay later. This fee is

included in the Pay Later Total you are required to pay to us on the Pay Later Due Date.

4.2.2 Late Payment Fees

If you do not pay your bill by the Pay Later Due Date, we will charge you an additional fee of $5.00 every

30 days from the Pay Later Due Date until your bill is paid in full.

4.2.3 Maximum amount of Fees

The Service Fee and any applicable Late Payment Fees shall not, when added together, exceed 4.1% of the Advertising Total. For the avoidance of doubt, Late Payment Fees will not be charged where, together with the Service Fee, the total fees are above 4.1% of the Advertising Total.

4.2.4 Interest charge

In addition to the Service Fee and Late Payment Fees set out in clauses 4.2.1 and 4.2.2 respectively, an interest charge of 1.9% of the Advertising Total applies for allowing payment deferral to the Pay Later Date (where applicable). The Interest Charge has been included in the Pay Later Total. If you pay your bill in full before the Pay Later Date (because your bill's Pay Later Due Date arises before the Pay Later Date or for any other reason) then we will reduce the interest charge in proportion to the number of days for which payment deferral was provided.

4.2.5 Maximum amount of Interest, Fees and Charges

For the avoidance of doubt, under this contract the total of the Service Fee, any applicable Late Payment Fees and the interest charge, together, will not exceed 6.0% of the Advertising Total. Subject to clauses 2.1(h) and 4.3.1, there are no other fees or charges payable in relation to this contract.

4.3 Non-payment – important information

Payment of your bill is due in full by the Pay Later Due Date.

4.3.1 Securing payment

In consideration of us offering the Pay Later services under this contract to you, you agree to grant us an equitable right to charge the property, and agree to charge the property to us, as security for payment of any bill or statement and the performance of your obligations under this contract.
You consent to us lodging a caveat over the property to secure our equitable rights and to protect our interests.

If the property is in Queensland, we may require you to execute and deliver certain documents to us to enable us to record, register or protect our security interest. You irrevocably appoint us as your attorney to execute any such documents if you fail to execute them within 7 days of our request. You also authorise third parties to act on a declaration or oath of the attorney as to any facts supporting the exercise of this power and to accept it as evidence of the same.

4.3.2 Difficulties in paying

If you have difficulties paying your bill, you should contact us as soon as possible. We will provide you with information about payment options (however notwithstanding any payment plan agreed to by us all amounts must be paid by the Pay Later Date).

 

I paid $6.5k via VPA when I sold my apartment recently, now it makes me wonder if we have choice not to use VPA/ use alternatives if the selling agent insist thats the only platform they use for marketing.

 

We have this on a sales agency agreement and had not known about it prior. We would be happy to pay in advance via the agent rather than engage with a third party for marketing. Perhaps it is a new method?

 

This is why ...
Because people are cash poor, or just stoopid to think this kind of BNPL is good.

 

campaign agent keep all the money from the vendors and pay them every 30-50 days, Thats why even pay now you still have to sign agreement as your money goes to them not the agent right away. I think they have changed this now due to increase competition in the space though...

 

Just looked into this, and some of them are not being an entirely open.

Listready and Marketnow make the agent the borrower! they didn't tell me upfront -

Salefunder and CA at least make the vendor borrow the money. Sale, the loans are larger and longer. CA are now owned by REA, not 100% clear I like that.

Read the fin print people