Hi all,
Question for a Real Estate Sales Agent in the know…
When signing a Sales Authority, who has to sign it?
For example; If a house has 3 names on the title, do all 3 owners need to sign the sales authority? Is the authority valid if only 1 or 2 owners have signed it?
Thank you
Thank you ozbarbara, I appreciate your feedback
That is certainly what should happen. Whether an agent adheres to it or not is the real question.
Considering how heavily regulated the real estate industry is you would hope they'd adhere to it! Out of curiosity though, if only 1 out of 3 owners signed a sales authority doesn't that question the validity of it? Don't all owners have to sign/agree to the sales terms?
If you are worried you might want to get actual legal advice.
Considering how heavily regulated the real estate industry is
I am not sure what you are basing this on, but I don't agree at all.
Real estate industry is not the conveyancing industry.
Different things.
Conveyancing is highly regulated. Real estate is not (but they have an eye on them at the moment).
Whilst technically correct, the agent can advertise, accept an offer and verbally "sell" the property with only 1 signature. The Sales Authority has very little value. (other than locking the vendor who signs it into commission $$$)
They might get a little slap on the wrist if the REIV does an audit. Very unlikely tho.
The Vendor statement and Contract of Sale (VIC) is what matters. It will need all 3 persons to sign or nothing can proceed. If the agent accepts on offer, contracts are exchanged, then if 1 person on title refuses to sign, the sale cannot proceed.
"The Sales Authority has very little value. (other than locking the vendor who signs it into commission $$$)"…
So if only 1 of 3 vendors have signed the sales authority, the other 2 are locked in by default even though they've never been consulted/had any contact with the said Real estate agent? Hardly seems fair.
the other 2 are locked in by default
I'm not sure how you came to that conclusion when I said practically the opposite.
1 proprietor on title can sign a sales authority and have a real estate agent advertise and accept offers for the property. It's in the real estate agent's best interests to get all 3 to sign however.
No transaction can occur unless the Contract of Sale is signed by all 3.
Land transactions must be in writing so anything the vendor, real estate agent etc. says means nothing if 1 or 2 of the other proprietors refuse to sign the Contract of Sale. The potential buyer, unless it's a very rare circumstance, can't do anything about it. If that occurred you'd be damn sure the real estate agent is chasing the 1 proprietor that did sign that sales authority for their commission!
I think whether it's an estate or not is a key thing
If it's just 3 owners who entered into a venture on a property it's a different thing to an estate that needs to be wound up where the executor/court can order it to be sold
Hi there. All three people need to sign the authority unless one party has authority over the others by way of power of attorney for instance. Otherwise all parties must sign.