20190121 (Mon)
Can we all do without estate agency practice in a property deal? Part 5
How to get more buyers? You have learned that Cash Buyer A will press for lower price. Loan buyer B will need time to get loan approval, and more demand will make Mr V the seller getting higher offers.
Therefore, the secret of selling a property high is about advertising for more buyers. BUT
VAEP* Act S.22B (1A) A person undertakes estate agency practice if he acts as an agent, or holds himself out to the public or to any individual or firm as ready to act as an agent, for a commission, fee, reward or other consideration …
Therefore, holding out to the public constitutes “estate agency practice” thus needs to be regulated under this VAEP Act, 1981.
Being a legal practice, a lawyer cannot advertise for listings unless he is also registered as an estate agency firm. Then again, being a legal practitioners, he is familiar with “Power of Attorney” over a real estate***. This is an exception to practicing Estate Agency in S.22C(2)(c) VAEP Act 1981. However, there shall be no commission involved in the transaction.
Thus in general circumstances, if a lawyer acts as a PA (Power or Attorney) at the same time handling the sale and purchase agreement, he needs to confine to certain circumstances. “Conflict of Interest” is not allowed in either legal practice or estate agency**.
* Valuers, Appraisers, Estate Agents and Property Managers Act 1981.
** Unless provided by the law as in some jurisdictions – e.g. some states in the US.
*** POA is to be registered with the High Court, so usually a lawyer would have that know-how to execute a POA. He might facilitate a third party Donee to work out the selling.