What should you consider when selling a property

1. What should you consider when selling a property through an agent? Let’s face it, most homeowners are attached to their properties and do their best to maintain their homes in the best condition. However, to stand out in the market and attract high-quality buyers, it is essential to present a more polished façade. Specifically, it is necessary to invest in some elements of your house where appropriate, maintain your interiors, keep the legal paperwork ready, and, most importantly, find the right professionals to work with. When you sell a house, especially in a strong market, you will need to leverage the expertise and network of an agency/agent. In this blog, we will discuss the legal elements and contracts involved in hiring an agent. For real estate-related requirements, it is recommended to hire an experienced property lawyer in Sydney. Contract of Sale

2. Selling your property involves paying a big commission being payable to your agent. The 'contract' between agents and their seller clients is governed by the Property and Stock Agents Act 2002 (NSW) (the “Act”). The primary function of the Act is to serve as a consumer protection legislation, ensuring a real estate agent's appointment is a fair and transparent process. In particular, the Act provides establishes a regime of licensing of real estate agents and prescribes the contents of an agency agreement. Although commissions frequently involve significant amounts of money, many sellers sign agency agreement with little negotiation and, in most cases, no legal advice. An experienced legal expert from the best law firms in Australia can help you to negotiate a reduced commission and make other changes to the agency agreement favourable to his or her client. 3 Important Factors to Consider While Selling Your Real Estate Property Through an Agent The top three factors to consider are as follows: The amount of commission you will pay the agent The commission price is generally a percentage of the gross purchase price. The amount is always negotiable between the parties. However, the 'standard' amount often fluctuates depending on the market. Usually, commissions range between 2% and 3%, but the rate often drops under 2% as the sale price increases. It is also possible to negotiate a fixed commission and many real estate agents now offer fixed commissions in an effort to attract more customers. The nature of the appointment If you appoint a real estate agent as the 'sole' or 'exclusive' for selling your residential home, then the agent may be entitled to a 90 days maximum initial term. It is essential to remember that if you are not satisfied with the agent's performance within those 90 days, it will be extremely challenging to end the relationship or reduce this term without mutual agreement. Therefore, to avoid complicated situations, it is best to hire a property lawyer in Sydney. The commission payment

3. Most people will typically assume that commission becomes payable once the actual Contract of Sale settles and they receive the money from the buyer. However, under the standard terms stated in an agency agreement you could be liable to pay a commission in the following circumstances: ● When the seller defaults under the Contract of Sale and the Contract of Sale is terminated; ● The Contract of Sale remains incomplete or is terminated, and the entire or partial deposit is liable to be forfeited. This is of concern since the current trend is that buyers may negotiate to pay a reduced deposit (instead of the usual 10% of the purchase price) or to use a completion bond,. If there is only a reduce deposit or a completion bond, then as a seller, you may be obliged to pay the shortfall of the commission to agent depending on the terms of the agency agreement; ● If the real estate agent is appointed as an exclusive agent, her or she may be entitled to a commission regardless of who locates the buyer. Therefore, if the seller's friend, relative, or acquaintance purchases the property without any assistance from the agent, the seller may still have to pay a full commission. Contact Us Name: Sydun & Co Solicitors Address: Level 6, 162, Goulburn Street, Surry Hills, NSW 2010, Australia Website: www.sydunco.com.au