Page 22 - Real estate: a guide for buyers and sellers
P. 22
Real estate: A guide for buyers and sellers
Rebates The authority must include two
statements:
It is illegal for agents to retain advertising
or any other rebate, even if you agree to • a rebate statement indicating whether
the agent keeping the rebate. or not the agent is to receive a rebate
from advertising or other expenses
If an agent receives a rebate or discount on
any goods or services, such as advertising, • a statement explaining that you can
they must pass it on to you. If they receive lodge a complaint with Consumer
benefits in a form other than money, such Affairs Victoria should a dispute over
as gifts, they must pass the monetary commission or outgoings arise.
value of the gift to you.
Authority types
The authority to sell
The most common type of sales authority
Once you choose an agent, you will is the exclusive authority which means
be asked to sign an authority to sell, you appoint a single agency to exclusively
appointing that agent. This is a legally market your property. Under an exclusive
binding contract, which fully sets out the authority the agent is entitled to
details of your agreement with the agent, commission when the property is sold or
including: when the agent receives a binding offer at
the vendor’s reserve or asking price.
• whether the property is to be sold by
private sale or auction (and the auction You should not sign more than one
date) exclusive authority, as in certain
circumstances you may have to pay more
• the negotiated commission and than one commission.
marketing expenses with GST set out
separately Although it is less common, you can use
a general authority. This allows you to list
• the circumstances under which with more than one agency but only pay
commission is payable; this will depend commission to the agency that sells your
upon the type of authority signed, property.
whether it is an ‘exclusive’ or ‘general’
authority SELLER’S TIP
• the agent’s estimation of the likely Any changes after the authority has
selling price or selling range been signed must be made in writing
on all copies of the authority to sell and
• the authority period or amount initialled by both you and the agent.
of time given to the agency to sell
the property.
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