Claudia Fiori knew selling her home would come at a cost, but drew the line at paying commission to an agent who, she claims, did nothing. Ms Fiori believes she was led into a trap of signing an exclusive contract with LJ Hooker’s Kathy Phillips when she put her Woodridge house up for sale. However, 36 hours after signing the contract Ms Fiori sacked Phillips. According to Ms Fiori Phillips allegedly agreed to terminate the contract. However,...
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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...
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OPINION by Tim O’Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au Six months after successfully settling a sale to private buyers, Paul & Janet Goodfellow were shocked to receive a solicitors’ letter enclosing a $14,355 invoice. The solicitors represented Goodfellows’ former agent, Acme Realty. The invoice was for Acme’s commission on Goodfellows’ sale to their buyers, John and Jill Scott. The letter recited that in May 2008 Goodfellows appointed Acme as their sole agent...
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OPINION by Tim O’Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au This unsolicited letter is currently being sent by email to Re/Max agencies around the world: “As a fellow Re/Max Broker, I’m writing to ask if you or perhaps a colleague might be interested in a U.S. referral opportunity in Chicago. Many International real estate investors are purchasing cash flowing houses, condominiums, and apartment buildings at 50% of what they were once selling for in Chicago. ...
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OPINION by Tim O’Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au Not only had the buyers purported to “charge” the property with the seller’s agent’s commission liability while consequently consenting to the agent’s lodgement of an instrument-stopping caveat over the title, but also the seller had “irrevocably” authorized and directed the buyers’ solicitor to pay this commission at settlement. After reading Peter Mericka’s excellent blog post, Conveyancing Consumer alert- Beware of the Sneaky Stamp, I was...
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OPINION by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd Real estate agents have no automatic right to lodge a caveat over a client’s property to secure the payment of commission. So some cunning real estate agents are adding a clause to the agency contract by which the client gives the real estate agent permission to lodge a caveat. If a real estate agent adds a...
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OPINIONby Peter Mericka B.A., LL.BReal Estate Consumer AdvocateReal Estate LawyerQualified Practising Conveyancer VictoriaDirector Lawyers Real Estate Pty Ltd Rabies is a terrible affliction. It can can quickly turn a friendly family pet into a belligerent biting beast. Commission rage can have a similar affect on real estate agents, changing them from ordinary salespeople into cruel and manipulative bullies. Like rabies, commission rage cannot be treated. However, early detection means that a consumer can take precautions...
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by Peter Mericka B.A., LL.BReal Estate LawyerQualified Practising Conveyancer VictoriaDirector Lawyers Real Estate Pty Ltd “As it stands, Real Estate is the only consumer industry that manages to command percentage fees on selling prices. In an era where average agents will gradually be squeezed out by the internet, it’s a wonder the most costly agents have not been first on the chopping block!“ This is one of the observations made by Michael Atwell, a...
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OPINIONby Tim O’Dwyer M.A., LL.BSolicitorConsumer Advocate watchdog@argonautlegal.com.au Sellers learn a costly lesson after making a private sale where the buyer was originally introduced by their estate agent. “All buyers are liars!” An exaggeration, certainly. But experienced sales-people know you should always take with a grain of salt anything prospective buyers tell you. Justin and Jane Johnson did not doubt what their buyer said when they sold their home privately. They believed him and relied (ultimately...
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OPINIONby Peter Mericka B.A., LL.BReal Estate LawyerQualified Practising Conveyancer VictoriaDirector Lawyers Real Estate Pty Ltd The hypocrisy is astounding. Enzo Raimondo told the Herald Sun newspaper “If stamp duty rates are not reduced then anyone buying an average home will pay, as a percentage of the purchase price, a higher amount of stamp duty than they ever have before.” What Enzo chooses to ignore is that real estate agent commissions have doubled, and none...
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