Agent getting 3 commissions on our sale

[Bumperstump Cummerbund]

We've just found out that the agent selling our block is getting a commission from us, a commission from the builder the buyer is using because he's the one who put them together, AND a commission from the settlement agent because we're going with their standard company.

Is that normal or pretty standard?

I guess my reason for complaint is that we weren't impressed with his service, and were actually just waiting until the contract ran out. He never offered information or updates, I had to email him for any info because he never answered my calls. He'd actually been negotiating with the buyer for 8 days before he told us anything about it, and that was only in response to an email from me asking for an update!

I'll be ringing REIWA in the morning, just wanted to hear some opinions.

[little_O]

Definitely check. I had a feeling that the agent can't represent the buyer and seller? Maybe only in SA...

Check your contract...hopefully he's in breech

[YoYo]

Gah agents... Sometimes they get a whole lot of dosh for doing a whole lot of nothing.

It might be more of a 'referral fee' from buyers builder, and it wouldn't surprise me with the settlement agent as it seems they and a lot of RE agents are in cahoots with each other.

Find out though.... No harm in it.

[little_O]

Bingo!

Checked their website under real estate agents code of conduct.

Section12 "conflict of interest"

An agent must not accept an engagement to act, or continue to act, where to do so would place his or her interest in conflict with that of the principal.
An agent shall not without the prior written consent of the principal, directly or indirectly, purchase or take on lease or be in any way concerned or interested, legally or beneficially, in the purchase or taking on lease of any real estate or business which the agent is engaged to sell or lease.
An agent who directly or indirectly purchases or takes on lease or is in any way concerned or interested, legally or beneficially, in the purchase or taking on lease of any real estate or business which the agent is engaged to sell or lease shall not demand, retain or receive a commission unless the principal has agreed in writing to pay the commission at the same time as or following the signing of the consent referred to in section 10(2).

[Bumperstump Cummerbund]

Just spoke to REIWA and basically it's fine. The only thing we can do is change settlement agents so he doesn't get a fee from them, so I'll do a bit of a ring around and see if anyone is cheaper - I certainly don't want his referral fee coming from MY pocket!