‘Need for agency arrangement between vendor, agent’
7 November, 2017, 12:00 am
REAL Estate Agents in Savusavu say there needs to be an agency arrangement between a vendor and an agent open to negotiation when deciding on commissions.
In an interview Ki Maren Real Estate director Aren Nunnink said they were aware of the need to regulate commissions due to cases of abuse by agents.
Mr Nunnink said they were totally opposed to the practise that had happened with some agents where they added a commission on top of a selling price because that is in the interest of the agent and not the vendor.
“We are opposed to that but on the other hand we believe that it should be an agency arrangement between a vendor and an agent open to negotiation,” he said.
“Agents operate on a percentage system where our commission is a percentage of the final sale price and in that sort of scenario it is in the interest of the agent to try and help the vendor to get the best price for their property. That way both are winners and I think that should remain.
“We don’t believe that there should be any kind of upper limit.
“It is a free market and we want to encourage that.”
Mr Nunnink said a vibrant economy was based on free market where people could advertise their properties and be confident that they could get the best price possible.
“Therefore if we try and restrict that then it’s going to have a real negative effect on the real estate business.”
Responding to these statements, Real Estate Agents Licensing Board’s acting chief executive officer Virisila Tuimanu said they would take the submissions back to the board before the submissions would be given to the minister for his comments.
Ms Tuimanu said the consultations in October was needed as the current regulation was enacted in 2006 adding that the new proposed Real Estate Agency Regulations is expected to be passed as law next year.