Early Release of Deposit

by Peter Mericka B.A., LL.B Real Estate Lawyer and
Qualified Practising Conveyancer
Victoria
Lawyers Real Estate

Enzo Raimondo, CEO of the Real Estate Institute of Victoria (R.E.I.V.) regularly provides consumers with his understanding of the law affecting the sale of real estate. Unfortunately, Enzo's explanation of these laws is often quite limited, and his offering in the Domain section of The Age Saturday 28 April 2007, is a case in point.

In his article Enzo suggests that a person who sells one property can use the deposit paid by the purchaser of that property to pay the deposit on the purchase of another by arranging for early deposit release. Enzo presents this as something of a helpful hint for vendors, but doesn't go into detail.

As a practitioner in property law, I find Enzo's article both mischievous and misleading.

As Enzo acknowledges in his article,

"...if an early release is agreed to, the selling agent may deduct commission and expenses from the deposit when the release occurs."

This is a very important point, because in my experience estate agents will always put their own interests ahead of those of the vendor when the deposit is needed for the purchase of another property.

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Gold Coast Property Lawyer In Deep Trouble

by Tim O’Dwyer M.A., LL.B
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au


Gold Coast solicitor Michael Yarwood, who once protested that he was a Rotarian and a church-goer, has been struck off as a Queensland lawyer.

This month the Queensland Law Society resolved to cancel his practising certificate following a probe into his discontinued practice and trust account.

Yarwood also reportedly faces possible criminal charges after the Law Society referred him to law enforcement agencies over what it said was a `serious irregularity' in trust monies allegedly received by his practice.
A Law Society investigation will focus on the Yarwood Legal Group, the former law practice which Yarwood closed last December.

The Society also appointed a panel of accountants to wind up the Group.

In a note posted on the QLS website, the Law Society Council said it had passed several resolutions regarding Yarwood's former practice.

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The Gospel According To Nigel

by Tim O'Dwyer M.A., LL.B
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

A New South Wales client of mine was interested in investing in New Zealand property through a buyers’ advocate. He sought my advice on the appointment form of a company he had come across.

I had some immediate doubts, and warned my client off.

Next day Nigel, the company’s director, audaciously phoned me to ask what my concerns were. I in turn asked for Nigel’s qualifications, what real estate licences he held and details of the service he provided.

Read the Gospel according to Nigel...

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Why Queensland Estate Agents Don't Give Discounts

by Tim O'Dwyer M.A., LL.B
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

Will the apparent upturn in Queensland housing prices mean discounted real estate commission rates? Will agents charge sellers less as homes are reportedly sold within days, if not hours, of going on the market? The answer is no – to both questions.

Residential agents’ commission rates, unlike property prices, have never been affected by the so-called “market”. Agents will not offer discounts to sellers if sales prove easier, or occur faster.

Whatever the climate, agents occasionally make quick, easy and non-discounted commissions when properties are sold to next-door or nearby neighbours. It’s the same result if an agent sells a rental property to the owner’s tenant. For this reason, before putting properties on the market with an agent, sellers should always talk to their neighbours or tenants.

Solicitors’ fees for preparing private sales contracts are miniscule compared with agents’ commissions.

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