original_ice_princess_21 :
My partner and I have found a property that we like. We were originally shown through by an agent. We returned the next day to have a look around without an agent and the owner turned up to mow. When we were leaving we got the phone number from the owner. We are interested and would like to make an offer direct to the owner is it legal? The agent is not an exclusive agency as the property is listed with various agents.
Sorry should have said we didn’t sign any agreement with the owner. We simply met her at the property and she showed us through.
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{ 3 comments }
Disclaimer: I know absolutely nothing about Queensland real estate practices. And even if I did, I have no idea what sort of agreement the seller signed with the agents. However…
My response if someone were to ask me regarding where I operate (Virginia, United States):
Sure, you can make an offer to the owner. Absolutely. The transaction is between the buyer and the seller. The agent is only that–an agent.
However, in Virginia (and most areas of the United States) the seller has signed a contract with a listing agent. It may be an exclusive contract or a non-exclusive contract. (Just because other agents have access to the property doesn’t mean it’s listed with them.) If it’s an exclusive listing, then the seller owes a commission to the listing agent, regardless of how the property is sold. If it’s non-exclusive, it depends on the exclusion in the contract. However, all that is between the seller and the agent; it’s none of your interest or concern.
Bottom line there: If it’s an exclusive contract, then the seller will owe the agent the full commission. If it’s non-exclusive (and you haven’t convinced me it is), then it depends on the wording of the contract.
However, there’s another twist. Did you sign any document with the agent who showed you the property. If you signed a buyer’s broker document, then you may have promised to pay your agent any commission on a property shown to you which you then bought if that commission isn’t paid by the seller. That’s most often (but not always) used with “for sale by owner” properties. Still, even if the seller can do an end run around his/her agent, you may be responsible for the commission.
So, be very, very careful. Obviously, I’d advise you to go through the agents.
that is not only illegal, that is VERY immoral.
There is no legal obligation on you, the Buyer, to make your offer through the Agent who introduced you to the property. This is a question of personal morals, which only you can answer for yourself.
If you were to buy direct from the Seller, the Agent would be entitled to their Commission from the Seller – however this has no real consequence on you.
For me personally, I would not want to cheat somebody out of their pay. The Agent appears to have done their job, so why not put your offer thru them and allow them to finish it and be paid the money they have earned.
The difference between 95% of Agents and the average salary man/woman, is that the Agent only gets paid when they make a sale i.e. they are commission-only earners. This could mean working full-time, 5 or 6 days/week, for a number of weeks before a sale is made.
At the end of the day, you will be paying the same amount. The only difference is whether the Agent gets what they have earned.
I don’t mean to lay it on too thick, but if you really think of the potential consequences of your actions here in these uncertain financial times (and I mean right here and now today – Australia Day), whether this Agent is paid for this deal could be make or break for them.
All the best with it.