Commission Factoring - A Dangerous Development
by Peter Mericka B.A., LL.B Real Estate Lawyer and Qualified Practising Conveyancer Victoria Lawyers Real Estate
We have argued that real estate commissions are a major cause of corruption in the real estate industry. But what if the drive for commission is intensified? What if the estate agent has spent the commission in advance, and fears that the sale may collapse?
It is the common experience of lawyers and conveyancers that estate agents involve themselves in real estate contract matters when they have no right or reason to do so.
Commission rage is often a factor, as the tendency to meddle in contract matters appears to rise with the estate agent's need for money.
This flyer is being distributed to Melbourne estate agents, with the message,
"Why wait six weeks or more for commissions to be paid? It's your money, so get paid NOW!"
It appears that an estate agent can now spend the commission in advance.
Does this mean we can expect ever more desperate attempts by estate agents to control real estate contracts?
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