Seeking investors for a certain profit making venture
Leverage is seeking investors regarding a new exciting business venture. Leverage wants to create a new business called â€œCommission Bustersâ€ as a service to assist vendors.
Leverage service will be to act for vendors free of charge. All leverage will seek is 25% of any commission they can win off any real estate agent. Considering agents inability to complete agency agreements accurately, this could be a no brainer.
The service will be advertised on national television seeking all vendors to register with commission busters to save commission. This registration will cost $250 and they will receive free advice in relation to how to collect commission off the agent.
Even though this seems like a good service, unfortunately it’s not for leverage.
We believe in the real estate industry and have a policy not to sway agents for commission. The above is to highlight the point that every agent, every vendor who is now queuing up to see what pressure they can place on the agent to at least give up some of the commission. By lodging complaints as a means over anything as a means of redeeming some of their commission.
Many years ago, a complaint was lodged against our client regarding an agent looking at personal photographs. That indicated that the personal photographs on side table in the bedroom had been sifted through by the agent. This breach of privacy should amount in a reduction of commission. Unfortunately, after fighting that the agent was purportedly caught on the bedroom camera, we sought a copy of the video. The claim was dropped and no commission reduction was sought.
Even having a perfectly completed agency agreement does not help. The rules, in which you need to follow to ensure that you can collect your agency agreement, are as follow;
1. Complete the agreement accurately in accordance with the property stock and business agent act 2002;
2. Ensure that your agency agreement makes you the stakeholder for holding the trust money and deposit. He who holds the gold rules. Solicitors cannot make up contract for sale and purchase of land requiring that the deposit be held by the solicitor if you have it in your agency agreement. By having it in your agency agreement, you can hold a lien over the commission not releasing it under any circumstances;
3. Ensure that your agency agreement gives you the authority to release to account for yourself for commission at settlement. Most agency agreements these days have this clause, which permits you to take your money out when the contract is completed. Fair trading has provided us correspondents that indicate that no solicitor can ask you to keep your money commission in trust if such a clause exists in your agency authority.
Ensure the three tips are that you complete it accurately, hold the money in trust and have a clause that allows you to take the money out on settlement irrespective of any solicitors’ protestation.
Money to business is like oxygen is to the body, if you don’t have it, you die. If you want a successful business, protect your commission by good agency agreements, control the money in trust and have relevant clauses.
Don’t invest in a Commission Busters, just invest in yourself.