Can REIWA suggest a suitable fee to pay for an agent’s service?
REIWA does not supply any guidelines as to the level of fees that could be paid to a real estate and/or business agent for their service. REIWA does not monitor the fees charged by its members. Further, it could be deemed a breach of the Trade Practices Act for REIWA to be suggesting what fees could be suitable. The level of fees are set by market forces and REIWA therefore can only suggest that prospective users of real estate agent’s services should compare fees and the level of service offered by several real estate agents.
How do I agree upon a fee?
There is no government regulation as to the maximum fee that an agent may charge for his/her services. The agent and the owner/seller must agree to the fee. The agreed fee will be dependent upon the services that the seller wishes the agent to supply. The agreed fee may be typed or in writing, however the agreed fee must be initialled by the owner/seller.
What Fee is paid to the Real Estate Agent for the Service Provided?
Government regulations do not fix fees charged by real estate agents. The level of fees is by agreement between the real estate agent and his principal. The fee will be dependent upon the quality and quantity of the services that the principal requires and are appropriate to the property for sale. The aim is to ask for and receive those services that you are most comfortable with, and those which are most likely to find a buyer or tenant for your property in a reasonable period of time, at a reasonable cost, and at the best possible price.
What is Strata Title?
Strata title originated in Australia and is a means whereby ownership in part of a building is held or transferred. A strata title is most often used in the case of home units or block of flats although its use is increasing in the case of commercial office property. Land comprises as well as fixtures, the strata below and above the surface of the land. The fact that land includes airspace above the surface is the concept which underlies the modern strata title. A strata plan of subdivision also divides the airspace above the surface, ie it divides vertically as well as horizontally. The strata plan of subdivision is in fact a plan of the home unit building. Common Property is owned by a body corporate created by the legislation and comprising of all the lot owners.
What is the Joint Form of General Conditions for the Sale of Land?
The Joint Form of General Conditions for the Sale of Land which forms part of the Contract are additional conditions to those already incorporated or written into the Contract for the Sale of Land/Strata Title by Offer and Acceptance. The Joint Form of General Conditions for the Sale of Land largely clarify areas where there is the potential to have a legal dispute about the contract, the property, or the settlement of the property. The Joint Form of General Conditions for the Sale of Land is reviewed every few years by the Law Society of Western Australia and the Real Estate Institute of Western Australia.
What is the Residential Tenancies Act?
The Residential Tenancies Act 1987 is an act of the Western Australian Parliament to regulate the relationship of owners and tenants.
What is the role of the real estate agent that represents the buyer?
The role of the real estate agent representing the buyer would include:
Identify your requirements
Identify suitable properties that may or may not be currently for sale
Research previous sales price statistics for the selected properties
Determine all matters relevant to possible transactions. For example title searches, the legality of structures, and the legality of the use of the property.
Draft any special conditions to a proposed contract
Conduct negotiations for the selected property
Obtain the property at the lowest possible price
To accurately define the subject matter of the sale i.e. what is included in the sale.
Prepare the Offer and Acceptance and draft any appropriate special conditions
Present a written offer and negotiate the sale price.
Explain the Contract for the Sale of Land by Offer and Acceptance and the Joint Form of General Conditions for the Sale of Land
Explain the effect of any variations to the Contract that may be requested by the seller or the buyer. For example extensions of time for finance approval or settlement
Monitor the contract from sale to settlement, especially the satisfaction of any special conditions
Arrange and attend the pre settlement inspection
Liaise with settlement agent/solicitor and other parties to facilitate settlement
Who is an eligible person?
At least one of the applicants must be an Australian citizen or have permanent residency in Australia. None of the applicants must have previously owned a home anywhere in Australia. Applicants must occupy the home purchased as their principal place of residence. If an applicant’s spouse or de-facto partner has previously owned a home, no grant will be available. Except in the case of legal disability, applicants must be natural persons (that is not a company). Everyone with an interest in the home is considered an applicant.