Hi,
I have a tricky situation. A friend of mine has asked for assistance in selling their home (NSW). They do not want to use an agent to save $$ and I was an agent in the past.
Does anyone know the easiest (cheapest) way to find out what I can/cannot do for my friend to help them sell their house. I have called fairtrading but they referred me onto another dept etc…I’d orefer not to get legal advice unless we are willing to pay for it..
Hope you can help,
Trophy
I don’t know of any laws restricting you form selling a house privately. Maybe you could have a look at owner.com web site this is specifically ste up for private sales they should be able to help you. Regards Beanie
Live every day like its your last
MY concern is that there are some activities (which a real estate agent performs) that connot be done by an unlicensed/registered person if the property id not theirs – mainly if there is an exchange of money/consideration (does a carton of beer count[biggrin])
Hi Trophy,
I agree with Beanie. You may also want to read Terry Ryders most recent book on private selling. If it is in NSW you would have to use a lawyer for the conveyancing. What else has to be done that only an agent could do?
Anne.
I’m not worried about doing it ourselves – but they are going to pay me a small fee which means I cannot do those roles of an agent under the Property Agents, etc Act – e.g introduce buyers, induce parties to purchase, negotiate price, etc. It’s probably not too big a deal but I’d hate for an agent to find out and come after me as they are inclined to do when someone steals their “work”
Hi Trophy
Quite a few years ago we had the same situation in NSW. Friends asked us to help them sell a block of land. I was concerned about working outside the boundaries of my license, which is in real estate, but NOT sales, but I was advised that if it is one off transaction, for a friend, there is no problem. I can’t remember where I got the advise because it was too long ago(which doesn’t help you) but it was from an official channel. Anyone is entitled to sell privately, and as long as you are not actively giving the impression that you are acting as a licensed agent, there should be no problem. The matter of consideration is a bit of a grey area I think!! No-one apart from the vendor would know what the consideration, if any, would be.
Wake
Ok so you feel a bit nervous about helping a friend. Dont be. As long as all the details and the contract goes through a conveyancer/solicitor by both parties its legal.
You have to give your friend an invoice for the fee they pay you and declare it on your income for tax as it is an earned amount from effort, yours.
If you are introducing parties to a contract you are in effect supplying information. As long as these guidelines are kept you should have no worries except where you will find buyers for your friends property.
Give a few basic details here and someone will tell you how cashflow positive the property is and therefore how easy to market in here and other similar sites.
Whatever you do, do not give advice as this would be in breach of the PS146 ASIC guidelines. If you just pass on details of location, fees and charges, rental details etc without a recommendation either way, it is only research you are getting paid for.
Good Luck
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Contracts need to be done by solicitors and any deposit from the purchaser needs to be taken by the solicitor and placed in their trust account.
I think you would be walking a fine line there, especially if you are going to be receiving a payment for helping sell a property that you do not own.
If everything goes smoothly you should be right.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I would be very careful about this, the issue is not all about ASIC Policy Statement (PS146), it all comes back to commissions. Basically if you receive a commission as part of any Real Estate transaction you must be currently licensed.
The Dept of Fair Trading clearly states that you must not Induce, Transact, Influence or Show a property unless you are licensed or an authorised representative of a licensee.
Remember: 7 years in NSW to pursue you.
Hope this helps.
Ashley Hooker
Compliant Investment Properties
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