Article, 9 August 2004 

 An office selling an agent’s property – The Disclosure (Part II)

Last week, we considered whether the “disclosure” provisions of the PAMD Act oblige an agent to disclose to a buyer that the property is owned by someone connected with the office.  The answer was “No”. 

What about the Code ? (ie the Property Agents motor Dealers Act (Real Estate Agents Code of Conduct) 2001).  There is no rule in the Code that specifically obliges an Agent to tell a buyer that a property is owned by someone connected with the office.  The closest the rules get are:

¨           section 7 – which states that an agent must act: “honestly, fairly and professionally” … and must treat customers (ie buyers) “honestly and fairly”; and

¨           section 25(1) – which states an agent must make sure their customers (ie buyers) know that the agent acts in the interests of the seller.

This all make sense, of course, because the agent’s job is to get the best price possible for the property.  It doesn’t matter if the seller is a well known celebrity (eg the Queen) or an agent’s relative or friend, or someone the agent barely knows.  The agent is still bound to get the highest price possible.

Also, there is a natural disclosure of the seller’s details at the time the contract is signed … when the details are recorded on the contract itself.

Our “first time” web-site, with clauses etc

 For special conditions, articles and other useful information, try our website: www.hainslaw.com.au

 Choose “Property” and then select from the heading “For agents”.

 Please advise us of any improvements you would like to see at this site.  We intend to make it the most useful site possible for agents.

Kindest regards,        Michael Hains 9/8/2004

"No problem can stand the assault of sustained thinking."   Voltaire
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