Page 23 - Real estate: a guide for buyers and sellers
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The estate agent’s responsibilities to the seller
What can be negotiated? Advertising and other outgoings
The costs associated with marketing and
Many aspects of the authority to sell are advertising a property are negotiable.
negotiable between the seller and the
agent. You should discuss these with Other terms and conditions
the agent and make sure all details fit Make sure you understand and agree
their requirements before signing. The upon all terms and conditions before
following aspects of the sales authority signing. These conditions are negotiable.
can be negotiated: Any changes (deletions, amendments or
additions) must be made on the authority
The method of sale and initialled by both parties.
There are two main ways of selling a
property: by auction or private sale. Both The Australian Consumer Law and
have advantages and disadvantages. An contracts
agent will recommend what they consider
the best method of sale for your particular The agent’s authority to sell is a legally
circumstances. binding consumer contract. The Australian
Consumer Law makes unfair terms in
The authority period consumer contracts void. Estate agents
This is the period of time in which the must make sure their authorities comply
authority is in force with the agent. It is with the law.
negotiable and you should consider the
length of time carefully. Once you sign the An unfair term in a consumer contract is
authority, you will not be able to cancel it one that causes a significant imbalance in
during this period unless the agent agrees. the rights and obligations of both parties
There is no cooling-off period with an to the detriment of the consumer, and was
authority. inserted in the contract intentionally.
If no period is stated on an exclusive If a term is unfair, it will be void. The
authority, then the default period for sale by contract will continue to bind all parties,
auction is 30 days from the auction date. For but only if it can exist without the unfair
a private sale, the default period is 60 days term.
from the signing of the authority to sell.
Taking action on unfair
If the authority period expires and the contract terms
property has not been sold, you should
notify the agent in writing if their services If you believe there is an unfair
are no longer required. term in the authority, contact Consumer
Affairs Victoria on 1300 73 70 30.
The commission
You can negotiate the commission or
agent’s fee, payable when your property
is sold.
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