© Property Professor articles — www.thepropertyprofessor.net.au.
Reproduced with permission.
An agent’s genuine estimate of the selling price is now restricted to a single figure. There will be no more ‘price over $500,000’or ‘$500,000 plus’. Good call – prospective purchasers are much clearer as to what the vendor really wants.
An agent can’t make a sales agency agreement unless the agent has first given the vendor details of comparable sales and any other information the agent will rely on, to support their estimated selling price. Good call – a better informed vendor helps them to set a more realistic selling price.
If selling by auction, the vendor’s price can’t be increased during the life of the agency agreement. Good call – this puts pressure on the agent to make sure they’ve done their research to ensure that a more accurate reserve is set from day one.
All prospective purchasers who intend to bid at auction must register to bid. Photo identification is required to register. Good call – no more dummy bids.
It’s illegal for an agent or sales representative to have a conflict of interest with a property they’re selling. The maximum penalty is $20,000 or one year imprisonment. Good call – this should be a HUGE deterrent for any salespeople or agents.
Most documents can now be emailed, including a cooling off notice. Good call – finally the rules have caught up with the twenty first century!
Cooling off rights will be available to companies, not just individuals. Good call – many ‘mum and dad’ investors buy in a company name/family trust.
An agency agreement is extended from 60 days to 90 days. Bad call – isn’t 60 days enough time to sell a house? If not, the salesperson needs to work harder or the asking price needs to be lowered to meet the market.
Agents are no longer able to recommend conveyancers. Bad call – I can understand that recommending only one conveyancer every time isn’t good practice, but what’s wrong with an agent providing details of three or four conveyancers for someone to select from?