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?