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real estate agents, a necessary EVIL?

Last post 05-02-2008, 12:11 PM by kdorge. 0 replies.
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  •  05-02-2008, 12:11 PM 3606

    real estate agents, a necessary EVIL?

    real estate agents, a necessary EVIL?
    No! There should be clear demarcations between vendor, vendor's agent, purchaser, conveyancers or lawyers, banks developers, marketeers, and other parties. Primary roles should be specified as vendor, conveyancer and purchaser.

    Real estate agents should be legally required to describe themselves as R.E. Vendor's agents and this must be clearly explained and acknowledged in their business signage and correspondence. The agent must give the purchaser a document to that effect and retain a signed copy that the purchaser understands this.

    When a vendor wishes to sell his property, he should register his interest with a new government department which will then provide all the necessary documentation and attachments required to enable a sale with full disclosure of all relevant information to enable an informed purchaser to make the right purchasing decision. The vendor will pay for this on full user-pays basis.

    This will be registered and accessible on the department's website to registered buyers who will pay user-pays fees to access the information. If purchasers need clarification, the department could provide this in writing/email/verbally on user-pays basis. Or the purchaser is free to appoint his own lawyer to satisfy himself that these requirements have been met.

    If the purchaser wishes to negotiate on any terms, e.g. price, then he may convey his offer (through the vendor's agent, if there is one) to the vendor. Once a sale has been agreed upon, purchaser pays the department, which transfers the net proceeds to the vendor. This will include user-pays and other costs which the vendor has agreed to defer till settlement, or if the sale falls through. There may be no need for stamp duty if full user-pays is used.

    Banks, lawyers, agents, valuers, financial planners, developers marketeers, etc. have bought into the sale. This has led to unfortunate frauds perpetrated upon unsuspecting buyers. This proposal may do away with their interference, and allow them to concentrate on their primary ethical roles. There may be a dwindling of some of these parties but an efficient department may be the best cost-benefit outcome for a nation looking forward with 2020 vision.

    Bank valuations denied to purchasers would become obsolete as there would only be one valuation provided by an ethical departmental valuer for all parties.
    The department will provide legal documents which may result in the elimination of lawyers.
    Department officers may be appointed by purchasers as purchaser's agents to explain all the implications of the sale, so that the purchaser makes his decision with the best information possible. This will be charged to them on user-pays basis.
    The vendor's agent will receive his commission. However an efficient department may enable the vendor to register his intentions on the government website and appoint a department officer to handle his sale as his agent, on user-pays. Real estate vendor agents may become obsolete!

    I hope the nation has the vision to face improvements and free people from lucrative and potentially unethical work.


    Are real estate agents a necessary EVIL?
    • No, create a new dept. to eliminate all unethical possibilities
    • No, but regulate all such intermediaries to ensure ethical and full disclosure.
    • Yes, let them have their place in the sun, regardless of the detriment to purchasers.
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