Estate agents commission

Babystepsfan

Registered User
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This may be the wrong place to post.
I’ve noticed a big price differential in the same size / condition apartments sold in the same block, apparently this is because (large) investors will pay 12-15% less than first time buyers due to the rent cap on previously rented properties.
This isn’t rocket science obviously.
However - question - is it possible or is there anything to stop an estate agent also working for / taking commission from an investor ? Ie someone engages an estate agent to get the best possible price, estate agent is also paid commission by the investor to broker the deal, ordinary seller loses out on % of potential sale price.
Just a thought - are there any regulations in this area ? Ie preventing estate agents doing this type of deal ?

Thanks in advance
 
An estate agent can not represent the vendor and a purchaser. An agent acting on behalf of a vendor has a duty to obtain the best price possible with regard to their instructions.

EAs are licensed by the PSRA, and any agent found to acting in the manner you describe above could lose their license. It would be a clear failure to meet the minimum standards as set out in legislation which includes a clause on acting in the interests of the client at all times.
 
Hello,

It's an interesting one.

Many people, myself included, would say that the estate agent business is no where near transparent enough, leaving many with concerns as to what they are really up to, some times.

I don't recall ever hearing of an estate agent being struck off, or even sanctioned. Perhaps I've simply missed reports on same, or perhaps they are a far more ethical profession than I've ever given them credit for, so there's never been a need to reprimanded an estate agent.
 
I don't recall ever hearing of an estate agent being struck off, or even sanctioned. Perhaps I've simply missed reports on same, or perhaps they are a far more ethical profession than I've ever given them credit for, so there's never been a need to reprimanded an estate agent.
Google has a long list of such cases, several quite recent.

Two totally separate estate agents in my neck of the woods have in recent years been handed prison sentences for malpractice.
 
Hello,

It's an interesting one.

Many people, myself included, would say that the estate agent business is no where near transparent enough, leaving many with concerns as to what they are really up to, some times.

I don't recall ever hearing of an estate agent being struct off, or even sanctioned. Perhaps I've simply missed reports on same, or perhaps they are a far more ethical profession than I've ever given them credit for, so there's never been a need to reprimanded an estate agent.
I know of a few. In saying that, an awful lot of EA's weren't registered with the PSRA up until a few years ago and as such weren't allowed to price property, etc. They had to get a valuer in to do it for them, but of course lots didn't do that and continued to carry out business as if the registration was an inconvenience. I think a lot of them have now copped on, and anyone buying or selling can check if the EA is registered, or not.
 
Shane Ross, for his column in the Indo, became an estate agent just to show how easy it was. Basically, he paid a fee and he was annointed a fully fledged agent. MIAVI status and all that.

Now, while I'm sure PSRA have tightened up matters somewhat, I think it's safe to assume that the old cohort were grandfathered in without much if any examination of their case. Lots of chancers out there still!
 
I think it's safe to assume that the old cohort were grandfathered in without much if any examination of their case. Lots of chancers out there still!
Could the same not be said for plenty of other professions? There's chancers in every job, so don't see why you single out EA's.
 
Could the same not be said for plenty of other professions? There's chancers in every job, so don't see why you single out EA's.
Yes there is. All I have to do is look at my own profession! In working with clients buying homes, I was always struck by the way EA's wouldn't work by email, always by phone. Kind of the Donald Trump manner, don't leave a trail.
 
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