Why Estate Agents Should NEVER Handle Contracts

Published 03 May 07 11:27 AM | Peter Mericka 
Peter Mericka B.A., LL.Bby Peter Mericka B.A., LL.B Real Estate Lawyer and Qualified Practising Conveyancer Victoria Lawyers Real Estate

Jellis Craig Balwyn provides us with an excellent example of the type of mess an estate agent can make when he or she assumes the role of “lawyer” on behalf of a purchaser. Letter from Jellis Craig indicating the estate agent's incorrect belief that the contract was not binding. In this case the estate agent, Judy Balloch of Jellis Craig Balwyn, was specifically instructed not to meddle in the legal aspects of the sale. However, despite these clear instructions she drafted a special condition on behalf of the purchasers. Having prepared the purchaser’s offer, and delivering it to herself on behalf of the purchasers, the estate agent then received the offer on behalf of the vendors, and had it executed. The result? A “mule” of a contract that the agent incorrectly declared to be “not binding”!

While the estate agent moved onto her next sale, the parties and their lawyers were left to sort out the mess she had created.

When will estate agents ever learn?

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