Real estate bosses protest changes
Sun, 24 Jun 2012 2:22p.m.
Real estate bosses believe planned consumer law changes will open a floodgate of complaints against real estate agents.
If the Consumer Law Reform Bill becomes law, agents will be made legally responsible for claims they make about properties during the sales process.
Real Estate Institute chief executive Helen O'Sullivan has put in a submission opposing the bill.
She says it's unfair that agents will be wholly responsible, saying vendors need to be accountable too.
“While some parts of the declaration that a vendor makes can be cross-checked against other sources, such as council documents and title records, the agent to a very large degree is dependent on the representations made be the vendor about the property.”
Helen O'Sullivan says property buyers are already protected under laws enforced by the Commerce Commission.
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24/06/2012 7:47:37 p.m.
Great news for buyers.
24/06/2012 4:00:44 p.m.
I see problems here. either agents will only hand out or talk about information signed off by the vendor - as per Tom below this will enable any agent being sued to transfer the responsibility to the vendor. or an agent will simply not say anything when answered questions directly by buyers at open homes. they will get the buyer to email the answer to the enquirer the next day etc. it might also see some agents taking out prof imdemnty insurance which will either lessen their income of if they can pass it on lessen the sellers net proceeds.
not sure the buyer gets any more protection yet the agent and/or seller get less money.
so more compliance costs for no corresponding benefit or offset.
it may also lead to more almagtion of agencies lessening competiton
24/06/2012 2:36:46 p.m.
If vendors do not provide the correct information then that will open them up to court action. This would be a legal dispute between the Agent and the Vendor, it is simple as that.
Perhaps there should be a clause in the Agent/Vendor contract that states the Agent can take action if the Vendor ultimately provides misleading information that ends up get the Agent in trouble with the act.
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