20180821 Do away with law and regulation

20180821 (Tue)

When the market does not follow the law, what can you do?

There are many market practices which the law does not permit. For example, taking fees from both parties. Rule 93 and 89(2) of Valuers, Appraisers, Estate Agents and Property Managers Rules 1986 forbid acting and taking fee from both sides. The principle is the agent must protect the party who pays him the fee. Taking from both sides jeopardise this position.

Example, when a contract killer is paid to take down a person he cannot go and offer to this target that if the target pays higher fee, he will spare his life! In such case, he is taking fee from both sides. What will happen to this contract killer? Well, I do not know, but definitely he will not be trusted anymore! That is the similar condition for estate agency practice.

However, in some states, it has been a tradition that estate agency practice is taking fee from both seller & buyer or tenant & landlord. In some state, this is 50% each, and in other states 2% and 1% or 1 month plus half month rental from the seller/landlord and buyer/tenant respectively.

There is no law that says this can be done. The law says this is wrong. Notwithstanding, it is a common practice anyway. The grey area is when one foreigner comes to this area, he would be taken aback by this incidence. What would happen if he lodge a complaint to the Board?

Well, you know the answer.


Rule 93 and 89(2) VAEP Rules 1986.

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