Real estate agents face aN increasingly complex regulatory professional regime and competitive market. As real estate agency law becomes more complex, you need a specialist lawyer with a deep understanding of the NSW Property and Stock Agents Act and the real estate industry.
The Market
The real estate agency profession has faced volatile operating conditions over the past five years, and there have certainly been winners and losers in the market. Government incentives and falling interest rates have affected housing prices. Government limits on foreign property investment, the outbreak of COVID19, and the 2020 economic recession appear to be constraining the demand for residential real estate and the number of conveyances. This in turn has has constrained industry revenue and required for real estate agents to have greater efficiencies in their businesses and look for innovative ways to make profits.
Real Estate Agent Professionals
The real estate industry involves many different people with specialist roles, and one of the key players are the real estate agent professionals. Real estate agency disputes can arise between the agent and the client, or between agents. Such disputes can arise from purchase transactions such as disputes over commissions, conjunction agreements and sales of rent rolls.
Avoiding Disputes Through Well Drafted Agency Agreements
Even better then resolving a dispute is avoiding one altogether. Disputes can arise at any stage of the property transaction. disputes arise between an agent and someone renting, buying, or selling a home. Such problems can drag a real estate agent and their indemnity policy into a dispute between buyer and seller. Such disputes can revolve around:
False or misleading claims
Wrong or false impression and conclusion
Latent defects and problems with a property
The omission of crucial information
Dismissal of the contract before a sale
For instance an increasingly common scenario is where a vendor sells directly to a buyer introduced by an agent and that vendor tries to cut the agent out of the deal. The only protection the agent has is recourse to a well drafted and tight agency agreement that has a robust and comprehensive definition of “introduction”.
To protect yourself, your sales agency agreement needs carefully crafted terms to protect you from a vendor who does not intend to pay you for your efforts. Real estate agency professionals need an expert lawyer with deep experience in real estate agency law to draft robust and comprehensive agency agreements. This will protect you and ensure you are rightfully paid. A well drafted agency agreement must cover in an expert way:
The services provided
Theamounts of any fees or commission agreed
The circumstances in which the agent is entitled to payment – for example, commission is usually payable only when the property is sold
How and when payment is to be made – for example, whether the agent can deduct their commission from the deposit money paid by the buyer
Warnings about circumstances in which the vendor might have to pay commission to more than one agent
From 1 March 2015 inclusive, a warning about the commission if the agreement includes a term that a commission is payable even if the sale of the property is not completed
The extent of the agent's authority to act for the vendor – for example, whether the agent is permitted to exchange a sale contract on your behalf or make changes to the sale contract
The agent's estimated selling price for the property.
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Where more than one real estate professional is involved in a transaction, a conflict may arise between conjunction agents concerning the commission between themselves. Again a well drafted conjunction agreement by an expert real estate services lawyer will ensure you are protected.
Rent Rolls
In the real estate industry, most investors need help in managing their rental properties. Agencies are now more than ever focused on rent rolls. When you are buying a rental property, in essence, you are buying the rent roll, which is a detailed report of the gross rental income.
Disputes may arise during the sale of the rent roll. In this case, you will need the help of a commercial property lawyer to ensure that all terms and conditions of the transactions are met. Because the sale of rent rolls involves many complex factors, and multiple completion milestones, a dispute can arise at any point in time. When a dispute arises, it needs quick and expert action by an expert in real estate services practice..
My Real Estate Agency Services Expertise
Call me for advice, assistance, and guidance in:
Exclusive and sole real estate agency agreements
Open agency real estate agency agreements
Multiple listing agreements
The contract for sale of land
Commission contracts
Agency agreement termination
Rent roll sales contracts
Retention arrangements
Besides guiding our clients on how to resolve conflicts, we represent them in court. Having worked with different rent roll sellers, we can help you safeguard your interests. If you need expert representation on real estate agency law text me now.
