What does "Agent Declares Interest" mean ?

Hi all,

Browsing around RE looking at potential places and I see this at the bottom of the description...

"Agent Declares Interest"

what does that mean ?

thanks

 

It means either the selling agent or a very close relative owns the property - by law they have to declare this as it could represent a potential conflict of interest.

 

It most likely relates to beneficial interest,in Qld, if an agent sells a property to a relative they must declare that interest and they are not allowed to claim a commission. It doesn't really pertain to when an agent is selling, but they may be disclosing it for transiency - avoid any potential issues.

 

We inspected a unit for sale once where the RE agent told us he was obliged to disclose the unit belonged to his mother.
Marg

 

Beut! thanks all

 

ads that says "$300k+ Buyers" confuses me too.

 

Over 300k interested parties so competition will be fierce.

 

i had to ask the agent when I first saw that ad back then.

 

Sorry, thats transparency.

 

Bahahah

 

In Sydney that means it will sell for 1.25m

 

I don't see any of these as being a conflict of interest as a selling agent in your examples.

If the selling agent owns it then surely he wants to best possible price and I would argue more than if it was just a client as that $1,000 is pretty much another $1,000 in their pocket compared to a client where it might be $20. Depending on how the REA is with the business if it is the owner it wouldn't make sense to charge himself for it so unlikely there will be commission if it is an employee depends on what they can negotiate with the boss. As the boss might be just happy to have another property advertised under their name and wont charge commission or if they do it would be reduced commission.

If it is a very close relative then again wouldn't they be wanting the best for their client and not try and screw their very close relative. As they will need to see the relative each day likely for the rest of their lives. Can still charge commission although it could be reduce as a 'mates rates'

I would say that the interest is that the REA is interested in purchasing themselves and if they purchases it then they have declared interest and will not be able to charge commission to avoid any conflict of interest concerns.

 

No, that's not what 'agent declares an interest' means. Agent may hold an interest - as in ownership. If the REA wanted to buy it, he/she would not be advertising it.

More fully it means that the agent personally, some one at the real estate office (ie - anyone who works for the business), or a company that someone at the real estate owns or is involved with has at least part ownership of the property being offered for sale.

 

If I have a property and the agent wants to buy it why would I just sell to them? Yes I can save advertising and agent fees but how would you know this was a 'fair' price? E.g. My house is actually worth 500k but REA says they will buy it for 450k, I think great as I paid 100k for it 20 years ago and I am now 70. The agent tells me they will buy it and I save 10k commission and 10k advertising I go excellent however it really costed me 30k.

If the REA advertised it on the market I would you think this should be disclosed to other buyers. Using the example above it now means that if I offer 500k and the REA also offers 500k the REA 500k could actually be worth 520k in theory if they cannot charge the marketing but they couldn't charge the commission. This as a buyer means more to me as the REA offer will trump most offers when they are submitted.

I cannot see a logical reason why the agent needs to disclose that they own or have a close relationship with the vendor as it wouldn't conflict in my opinion their job - to sell the house for as much a possible. Using the 500k example if the agent tries to get 550k (50k above) this is good for the vendor so who cares but nevertheless it wont sell right away as there are better properties selling for the same price or a similar property for 50k less (its comparable).

Heck end of the day pick up the phone and speak to the agent that is the only way to be 100% otherwise we are just guessing but I would doubt the REA owns/related to it but more the REA wants to buy it.

If you can explain why it is a conflict for the REA owning it and needs to be disclosed then please assist me in my understanding .

 

The add is for a unit in Port Mac..
306/68 Pacific Drive Port Macquarie NSW 2444 - Unit for Sale #117398859 - realestate.com.au

Domain says its been on the market for over 1000 days!!

Property Report for 306/68 Pacific Drive, Port Macquarie NSW 2444

Interestingly a nearly identical flat in the same block is $70k cheaper!!

204/68 Pacific Drive Port Macquarie NSW 2444 - Unit for Sale #123531818 - realestate.com.au

seems odd.

 

Wrong way around

Consumer VIC

Contracts and disclosure statements – estate agents - Consumer Affairs Victoria


A selling agent can also obtain a beneficial interest if their spouse or relative purchases the property, or a company that their spouse or relative owns or controls purchases the property. See below for more information about when a selling agent obtains a beneficial interest

 

Either it has been sold and they are trying to get free advertising or they are very slow at meeting the market.

CoreLogic can give you the advertising history but 3 years to sell a property means something has gone wrong.

 

An agent in QLD must declare to a vendor ( if they are the listing agent ) if they wish to purchase the property for themselves by filling out the appropriate forms . This form triggers any potential purchasing/selling well below market values which acts in the vendors interests.

 

In QLD:

Disclose your interests in property transactions | Your rights, crime and the law | Queensland Government