$20,000 Commission - Money For Nothing
Let's call the real estate agency "Arrow-Maker Realty" (AMR), and their conveyancing company "Arrow-Maker Conveyancing" (AMC). Both operate under the "Arrow-Maker" banner, and clients of one are encouraged to utilise the services of the other.It sounds like good business to offer a one-stop-shop service. But in this case the arrangement became a conspiracy against the client. It is a perfect example of what consumers can expect with the inevitable infiltration of estate agents into the conveyancing industry.
4 Comments:
Liked your latest, Stirrer.
Watch this space, because old ‘dog is working on a double-barrelled piece for The Blog about the same subject.
In one sale to the tenants, yours truly intervened and well-and-truly shafted the agent who had expected a full commission. In the other the agent grabbed the dough, but the Fat Lady ain’t sung yet.
Be aware, this is a subject where you and I will part company with those in real estate who may be sympathetic to our cage-rattling.
This seems to be a common practice in Melbourne, and this is the second time I have heard of it first-hand from a client. The other time was where a purchaser client was asked by the estate agent, “If you’re buying, you are probably thinking of selling?” Client replied, “Yes, but we already have someone who’s interested, thank you.” Not to be deterred, the estate agent offered, “Well you can have me close the deal for you.” Client was laughing when she told me that the estate agent’s fee for “closing the deal” was equal to a full sale commission (i.e. 3% of the sale price).
But even more important to my mind is the fact that consumers and their legal advisers and being separated by the process of infiltration of estate agents into the conveyancing area. It started with law clerks leaving the lawyer’s office and paying agents kick-backs for referrals, but now the conveyancers are moving under the estate agent’s roof. This should be a matter of major concern to consumer protection authorities and regulators.
Betcha no-one can beat this:
A Deeep North agent once charged full commission for selling a block of land to the selling client's own wife who decided she really wanted it after the block had earlier passed to hubby in their matrimonial property settlement!!!
I acted for an elderly lady whose son-in-law is still one of Melbourne’s leading estate agents. She complained to me that he was charging her full commission on the sale, and he conducted the auction personally. That must come close.
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