Almost all of the homes that are sold each year in Victoria are sold with the assistance of a licensed real estate agent or agent’s representative. If you are planning on buying or selling a property it’s important to understand the laws that govern how agents interact with buyers and sellers.
In the first instance agents have a direct responsibility to the seller of the property – their client. This responsibility normally involves selling the property for a price that meets, or exceeds their expectations.
The detail of these responsibilities, specifically as it applies to price and the conduct of agents, are set out in law.
Above all an agent must act fairly and honestly and to the best of his or her knowledge and ability with all parties in a transaction. This includes not misleading or deceiving any parties in negotiations or a transaction and not engaging in harsh or unconscionable conduct.
There are also specific requirements set out for agents to follow. They must always act in the sellers best interests, they must give an estimated selling price and they must communicate all offers.
The estimated selling price (ESP) is what the agent believes a property will sell for based on their experience and knowledge. You can also expect the agent to explain to you how they reached the ESP.
The requirement to give an estimated selling price and to communicate real offers for the property applies equally to buyers and sellers. For instance if you ask an agent or agents representative what the price of a property is, or what he or she thinks it may sell for, they are required to tell you a price which is the same as the estimated selling price that they have told the seller.
This does not mean that the property won’t sell for more on the day, or that the property owner will reject your offer. Given the responsibilities of the agent they will do whatever they can within the bounds of the law to negotiate the highest possible price for their client.
If interested in learning more about this update please contact me today!
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