VIC Property Law - Is an Exclusive Sale Authority Legal?

[Lilyyc]

Hi,

I signed an exclusive sale authority as I want to nominate the house which is still not settled.

Here are some questions I've got:

Q1: Is this authority legal under Property Law? Frankly speaking, I don't have the house, and I can't sell it, right?

Q2: Should the commission be paid as stated in the contract? The agent requests their commission, but it's a nomination. Does this comply with the law?

Q3: Does the agent have every right to sell the property at the prices written on the contract? I was told if there is a vendor's asking price, if there is a buyer agreeing to pay that amount, the vendor has to accept that price, right? The truth is I'm not a vendor yet, should I be bound to this price?

Thanks very much for your help in advance.

 

[Rod]

What do you mean by "... as I want to nominate the house which is still not settled"? A bit more background would help.

E.g. Have you bought multiple properties off the plan and want to sell one of them?

 

[Lilyyc]

Thanks.

It's a second-hand house. Not settled yet. Want to nominate at the original price.

 

[Rod]

So you want to sell an existing house that you are buying but is not yet settled.

1. Assuming you have signed a valid sale contract for the purchase of this house, then yes, an authority to resell, assuming it is in the correct form, would be legal.
2. a) yes. b) I don't understand the second part of this question.
3. Sounds like a private sale agreement. No, you are not bound till you sign the sale contract. You may, however, be legally obliged to pay real estate commission fees if you reject a valid offer at the price you have nominated. Needs someone with more knowledge than me to comment on this.

 

[Lilyyc]

That is too bad. I have little idea about this.

The agent, when she asked me to sign the exclusive sale authority, told a different story. She told me the commission is to be paid by the buyer, as it's a nomination for the original purchasing price. She also told me if I don't want to sell the house, I don't have to sign the sales contract. I believed her. Now everything is the opposite.

What else can I do?

 

[Rod]

You need a lawyer to help you. There may well be an easy way out but you need a lawyer to sit down with you and look over your paperwork and then give you a proper legal opinion.

I can't tell from your post if English is your second language and you don't understand everything or if there was a simple misunderstanding with the real estate agent. In Australia the normal situation is for sellers to pay real estate fees/commissions.