Summary: Podcast Transcript Hi listeners and welcome to this month’s podcast. I’m Nicole Navarro, journalist with API, and this month I am speaking with the president of the Real Estate Buyers Agents Association of Australia (REBAA), Jacque Parker. Today we’ll discuss what you, as a buyer should look for when seeking a buyer’s agent to find investment properties for you. Nicole Navarro: Hi Jacque, and welcome… Jacque Parker: Thank you Nicole, and thank you for having me. NN: Now Jacque at a time when some selling agents are wanting to interchange between acting on behalf of the buyer and vendor, particularly to cash in on what is increasingly a buyers’ market right now, is there special licensing or a body that regulates against this type of behaviour? JP: Look, certainly I think firstly it’s important to point out that buyers agents and selling agents actually cannot act for and accept a fee from both parties in the same transaction. It’s actually illegal here in New South Wales under section 48 of the Property, Stock and Business Agents Act. Firstly, I think it’s important when you’re talking about selling agents acting as buyers’ agents, they have a legal obligation under the Act to disclose any relationships with any referrals and they have to actually accept a fee from the buyer to show they’re completely independent. When they’re working for an agency obviously it’s so much more tempting for them to show only listings from their own agency, so that’s why it’s always better to work with an independent buyers agent and not just a vendors’ agent, because there’s a clear conflict of interest there. NN: That’s some good advice there. So should all contracts be the same across the nation, is the legislation the same, or is it different according to different states? JP: Look it’s different according to different states unfortunately, there are changes afoot to make licensing a national process, but that’s still in its infancy stage. With buyers agents and selling agents there are two different types of agreements that clients need to sign and the OFT (Office of Fair Trading) here in New South Wales is obviously responsible for taking an disciplinary action against any agents who breach the Act. Consequences for not acting properly or not disclosing fees this can range from caution through to disqualification in some cases. NN: Is this something that will determine for buyers whether they’re dealing with an ethical buyers’ agent, that this particular buyers’ agent does only have that buyer’s interest at heart and isn’t receiving kickbacks from a developer? Is that going to really give that buyer the understanding? JP: Well I mean all buyers, when they sign up with any agent, agents have to provide them with the information if they are receiving fees or kickbacks as they’re known in the industry from any agent, any developer, any referral source. It’s actually called a section 47 disclosure form, and if they don’t disclose their fees then yes, they’re in big trouble. Any buyers’ agent worth their salt, whether it’s a selling agent trying to act as a buyers’ agent or preferably an independent buyers’ agent, has to disclose any referrals or other sorts of fees to the buyer. NN: Great, so can you provide some tips on what they should be asking or investigating when choosing a buyers’ agent? JP: Sure, firstly it’s important to check whether the buyers’ agent is appropriately licensed, and this can easily be done via a check on the state’s OFT site; you can actually see how long they’ve had their licence as well, as experience is obviously very important. As I said, as far as any referrals go they have to be disclosed to the consumer for whom they’re acting, if not, they’re in breach of the Act, which is a dangerous situation. But I suppose questions to ask any buyers’ agent when considering using their services, the most important one is, ‘how much experience do they have?’,
