Sellers escape liability for two commissions

Posted on September 15, 2013 by | 0 Comments

Sellers escape liability for two commissions

Mitchells (and our resident real estate watchdog Tim O’Dwyer) have long argued that real estate laws across the nation should be changed so only one commission is payable on any residential sale. In this case study, written by Tim for his regular Real Estate Escapes column in Australian Property Investor Magazine, both a selling agent and an introducing agent claimed commission on the same sale:

Because of my reputation as a consumer advocate, few real estate agents ever seek my professional advice, so it was surprising when agent Mary* came to see me about a commission dispute with another agent.

Her story wasn’t unfamiliar because too often I had heard sellers’ points of view.

Mary had shown a couple through a home listed with her agency. The prospective buyers already had an unsettled sale contract on their own home which had been sold by XYZ Realty*, a member of a national real estate franchise group.

The buyers were quite interested and told Mary they’d be in touch.

They weren’t. A week later Mary’s clients phoned her to tell her that their home had been sold by XYZ. When Mary learned the buyers were the couple she had dealt with, she smelled a rat.

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