Broker, Negotiator vs Agency principal. Who is right, who is “Verified”? Part 2.
Why is it important to deal with a legally appointed person?
This is important. Why? There are many unexpected events in the process of a negotiation. As long as it is not completed/unconditional, the money in the “Client’s Account” is NOT transferred to the Seller/Landlord. You can claim back your money when things turn sour. If you are not happy with the way deals are done, you can ask back your money.
The Negotiator and his Principal have to abide by the law. In such condition, duty of agency to the third party is within the framework of law. Although the agency is following instruction of the client – usually seller/landlord, illegal things are forbidden by the law. Thus, taking your booking fee and gone missing is illegal, for example.
All well and smooth is good, but there might be instances heated arguments happen. During this time, it is better you deal with the agency firm because they stand independent having the law which check on them. If you deal with an illegal agent, he might be a nice and honest person, however he cannot stand up to the Seller/Landlord when law is the matter. He has to watch his words. Why, he cannot even claim his commission from his principal!