Ang Kalatas Volume V February 2015 Issue | Page 16

16 THE MESSAGE. BRINGING INTO FOCUS FILIPINO PRESENCE IN AUSTRALIA www.kalatas.com.au | Volume 5 Number 5 | February 2015 PROPERTY MARKET Sales Agency Agreement AGENCY AGREEMENT SALE OF RESIDENTIAL PROPERTY Before an agent can market a property, they must sign a contract with the vendor, called “Agency Agreement”. This is a legally binding contract. Thus, when you sign an agency agreement with an agent, you enter into a legal contract. THE AGENCY AGREEMENT MUST STATE: l the services the agent will provide for you. l the amounts of any commission and/or fees you agree to pay for those services. l the circumstances in which the agent is entitled to payment – for example, commission is usually payable only when the property is sold or when advertising expense is due (if any). l how and when payment is to be made – whether the agent can deduct their commission from the deposit money paid by the buyer or be paid by the vendor. l warnings about circumstances in which you might have to pay commission to more than one agent, the extent of the agent’s authority to act for you. l the agent’s estimated selling price or price range for the property. l You can negotiate with the agent about the terms and conditions of the agreement and Alterations made to the agreement need to be signed by all parties. l Disclosure of all rebates, discounts and commissions (if any) REAL ESTATE MADE EASY DOM MELLA [email protected] which will or may be received by the agent in relation to expenses payable by the client under the agreement. TYPES OF AGENCY AGREEMENTS There are several different kinds of agency agreements. You should discuss the agreement with a legal adviser if you are not sure about your rights and responsibilities. The following is an overview of the different types of agreements. l EXCLUSIVE AGENCY AGREEMENT In this kind of agreement, you give exclusive rights to one agent to sell your property. This will entitle the agent to be paid commission if the property is sold during the fixed term of the agreement, even if the property is sold by you or by another agent. The original agent may also be entitled to commission if the property later sells to a person introduced by the original agent. l SOLE AGENCY AGREEMENT This is similar to an exclusive agency agreement. You give rights to one agent to sell the property but you may find a buyer yourself. If you find a buyer not introduced by the agent, then no commission is payable to the agent. However, both parties may agree to a reduce commission and/or compensation of marketing expenses incurred, if buyer is found by you. l GENERAL LISTING / OPEN AGENCY AGREEMENT This lets you list your property with a number of agents. You pay a commission to the agent who finds the buyer. l MULTIPLE LISTING This occurs when you deal with an agent who is part of a network of agents working together to sell your home. It covers both auction and private treaty. You only pay a commission to the agent you signed up with. l AUCTION AGENCY AGREEMENT This is effectively an exclusive agency agreement where the property is listed for auction. The “Fact Sheet” from Fair Trading explains further what your rights and responsibilities are under the contract. The agent is mandated by law to provide you with this “Fact Sheet” and a copy of the signed agency agreement. For free advice or further information contact Dom on 02 8887 5400 or 0403 226 169. Source: NSW Fair Trading Dom Mella is the Principal/ Licensee of Ray White Rooty Hill. He’s also a qualified accountant with background in Finance & Investments. He’s been in real estate business since 1999. Major changes to home building laws IF you are in the home building industry, or building or renovating your home, be aware of changes resulting from new laws, according to the NSW Fair Trading department. THE changes were shaped through extensive consultation with industry, home owners and key stakeholders. Most changes commenced on 15 January 2015. Further amendments concerning contract requirements will commence on 1 March. The new laws help to modernise industry practices, reduce red tape and support consumer confidence and building activity across NSW. Major changes from 15 January include areas covering: LICENSING l The threshold for requiring a licence for building and general trade work has been raised from over $1,000 of work to over $5,000 (including labour and materials). Specialist work (such as plumbing, electrical and air conditioning) still needs a licence regardless of the cost of work. l Stand-alone contracts for internal paintwork as well as work related to tennis courts, ponds and water features no longer need a licence, unless done as part of other home building work. l Up to 12 months in prison is a new sentencing option for a second or subsequent offence for unlicensed contracting or not having the required statutory insurance. l Licence eligibility has been tightened to stamp out ‘phoenixing’; where a company closes down leaving large unpaid debts, only to reemerge as a new company trading under a different name. l Fair Trading needs to be notified within 7 days if a licensed builder is ‘wound up’. OWNER-BUILDERS l Owner-builders are required to name all other owners of the land on an application for an owner-builder permit. This is recorded on the permit to prevent people using this system to carry out commercial unlicensed building work. Any owners named cannot apply for anoth- er owner-builder permit for a different property for 5 years. l Owner-builders are prohibited from getting a permit for a dual occupancy except in special circumstances. l Owner-builders are not able to get statutory insurance although contractors working for the owner-builder still need to provide certificates for work over $20,000. If the property is sold within the warranty period, the contract for sale must clearly state that there is no statutory insurance on the property. l The threshold for requiring an ownerbuilder permit has increased to work valued over $10,000. All owner-builders must provide evidence of having done basic work health and safety training, and for work over $20,000 they will need to do an owner-builder course. [For more details, visit the website of NSW Fair Trading, www.fairtrading.nsw.gov.au] LAND FOR SALE Located in Village East Executive Home (Cainta, Rizal). 267 sq. m. Fully paid. First owner. For more information, call Sol Chan (H) 9829 4321, (M) 0425 215 321 facebook.com/angkalatas twitter.com/angkalatas