In order to insure more equitable representation and more favourable outcomes for themselves, more and more Perth property buyers are appointing their own independent buyers’ advocates. Are you are considering buying property in Perth for the first time and wish to know more about origins of the current system in Western Australia?
Western Australia has adopted a similar model of property buying to the one practiced in Canada. The property buying process in both countries is streamlined and similarities exist, but in practice Perth property buyers do not seem to get as fair a deal as Canadian buyers. The points below highlight some of the key differences:
- Property buyers in Canada have the right to be represented by a buyer agent and do not have to pay for this right, as the buyer agent is entitled to share a portion of the Listing Agents Fee.
- Buyers in Perth, Western Australia, have no such guaranteed right but can opt to pay for the service. Property Buyers Services is a Perth buyer agent who can help you negotiate a property on a NO PURCHASE-NO CHARGE principle.
- A conjunctional sale (split commission sale between the selling and buying agents) in Western Australia is a discretionary right left entirely to the selling agent’s judgment.
- A conjunctional sale in Canada is mandatory, with the selling agent having no right to refuse a conjunctional buyer agent chosen by the buyer. Not in Western Australia.
- A selling agent in Western Australia has the right to discriminate against a conjunctional buyer agent in Perth chosen by the buyer.
- In Western Australia, the buyer does not have the right to make a complaint if the selling agent refuses to work with their conjunctional agent; only the seller, through the selling agent’s principal, can make a complaint.
- In both countries, the document used when presenting a formal offer to the seller is referred to as the Offer and Acceptance document. Once signed by both parties it is a legally binding contract.
- Western Australian selling agents act as dual agents in more than 98% of cases, i.e. they represent both seller and buyer. In Canada, the selling agent can also act as a dual agent and represent both parties, but this is very rare. In cases when it is practiced, the Canadian selling agent has to disclose the conflict of interest to the buyer. Under these circumstances, in Western Australia there is a conflict of interest where the contract (not only the property price but also the additional terms and conditions) is written by the selling agent who is paid by the seller.
So, although the principles of the Western Australian system are similar to those of the Canadian system, their implementation has been skewed to favour the seller, creating potential problems for the buyer.
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