Are you a real estate agent? If no contract then no show!
Ever shown a home without an agency agreement or sale contract? That can hurt you financially.
With REI QuiContract, you can get the sale contract quicker!
In a market where stock is low, is it possible to be too quick off the mark? Absolutely! While it’s tempting to show a property to potential buyers as soon as you find a potential listing, certain legal requirements have to be satisfied before you can show it.
Consider these scenarios. Perhaps you have a handshake deal with a seller to list a property. You have a few potential buyers on your database who’ll jump at the chance to see this property. What’s the harm in giving them a sneak peek? Or maybe you’ve recently sold a property and there are under-bidders still looking to buy. You know some owners across the street are considering whether to sell. Is there anything wrong with asking them if it’s OK to bring a few people through for a look? And what about buyers’ agents? You know a property that ticks all the boxes for one of their clients, but the owner is still undecided about selling. In each of these cases, you want to show the property to potential buyers immediately.
But beware! Has your agency agreement been signed? Is a sale contract available? While it may seem like formality for formality’s sake, having the right documentation is a must. If you don’t, you’re putting your commission at risk and may find yourself being hit with substantial monetary penalties.
Agency agreement
Having an agency agreement in place before you show a property to a potential buyer is essential. Without it, you could find yourself out of pocket.
Section 55(1) of the Property, Stock and Business Agents Act 2002 (NSW) provides that you are not entitled to commission unless the owner has signed an agency agreement.
But it’s not just about commission. A valid agency agreement also provides you with a range of other protections if something bad happens during an inspection. What if a potential buyer trips down the front stairs and hurts themselves? What if they slip on the decking and hit their head on the edge of the pool as they fall in? The number of ‘what ifs’ is unlimited.
The REINSW agency agreement provides you with comprehensive protection should a ‘what if’ occur. You’re indemnified against any actions and claims made against you in the proper performance of your duties. Detailed privacy terms, work health and safety provisions and material fact disclosure requirements also ensure you are protected.
Contract for sale
A sale contract must also be available before a property can be inspected.
Section 63(2) of the Property, Stock and Business Agents Act requires a sale contract to be available for inspection at all times when property is marketed. And a property is regarded as being marketed if, expressly or by implication, an agent invites offers to purchase.
If you fail to comply with section 63, you could be subject to a substantial penalty.
The bottom line
Have an agency agreement signed and a sale contract available before you invite a potential purchaser to inspect a property.
Sales agency forms are available from REINSW.
Sale contracts can be arranged quicker than ever with REI QuiContract. Order sale contract documents online immediately by just entering the property address. Register to use REI QuiContract today!