Why Estate Agents Should NEVER Handle Contracts

Posted on May 3, 2007 by | 1 Comment

Peter Mericka B.A., LL.B OPINIONLetter from Jellis Craig Real Estate Agents
by Peter Mericka B.A., LL.B
Real Estate Lawyer
Qualified Practising Conveyancer Victoria
Director Lawyers Real Estate Pty Ltd

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Jellis Craig Real Estate in Balwyn provides us with an excellent example of the type of mess an estate agent can make when he or she becomes involved in legal matters.

In this case the estate agent, Judy Balloch of Jellis Craig Balwyn, was specifically instructed not to meddle in the legal aspects of the sale. However, despite these clear instructions she drafted a special condition on behalf of the purchasers. Having prepared the purchaser’s offer, and then delivering it to herself on behalf of the purchasers, the estate agent then received the offer on behalf of the vendors, and had it executed. The result? A “mule” of a contract that the agent incorrectly declared to be “not binding”!

While the estate agent moved onto her next sale, the parties and their lawyers were left to sort out the mess she had created.


When will estate agents and consumers learn – real estate agents should NEVER handle contracts!


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1 Comment

  • Moddy says:

    I dont know why a legal document should not bind when so specifically created. She was wrong. There is a lot of education on legal matters that are invested in the training of an estate agent mostly to do with the law of contract. To then linit the services of an agent to merely introduction is a not enough unless it comes with no training. I have lost more nearly 80% of closable sales as a result of lawyers who complecate issues that are plain ordinary and already agreed on. You guys should be thankful when favoured with instructions.

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