Article written by Brendan Leahy
There is a question almost nobody asks their agent, and it is the one I would ask first if I were selling.
Do you, or anyone connected to you, have any interest in buying my home?
Most of the time the answer is a straightforward no, and that is the end of it. But it is worth asking out loud, and it is worth understanding why, because an agent’s job is to get you the highest price, and a buyer’s job is to pay the lowest. Nobody can genuinely do both at once. The moment those two roles sit in the same person, your interests and theirs are pulling in opposite directions.
That is not a small technicality. It goes to the heart of the relationship between a seller and their agent.
Where it matters most
This matters most when the seller is not in a position to fight for themselves. An elderly owner selling alone. Someone selling after their partner has passed. A family dealing with a deceased estate from another state. A home that has been let go and the owner is tired and just wants it over with.
Those are the exact situations where an honest agent should be doing more to protect you, not less.
What the rules actually say in Western Australia
You do not have to take my word for any of this. It is in the law.
Agents in WA operate under the Real Estate and Business Agents Act 1978 and a Code of Conduct. A few things sit at the heart of it:
An agent is required to act in your best interests, to comply with the Real Estate and Business Agents Act and the Code of Conduct, and to properly manage any conflict of interest.
An agent must act fairly and honestly, exercise due skill, care and diligence, and must not engage in misleading, deceptive, harsh or unconscionable conduct.
Conflicts of interest must be disclosed. Consumer Protection WA is explicit that where a conflict arises, an agent has to disclose it and obtain consent.
And it is stronger than most people realise. Section 64 of the Real Estate and Business Agents Act 1978, headed “Conflicts of interest of agents”, says an agent must not have any interest, direct or indirect, in a transaction they are acting in, unless the client has
given prior written consent. There is a penalty for breaching it, and a court can order the agent to hand over any profit they made. In other words, the law already forbids the exact thing this article is about, unless you have signed off on it in advance.
And this is the part most people miss: consent does not wipe the slate clean. Even after a conflict is disclosed and consented to, the agent must still act in your best interests, and your consent does not stop you pursuing a claim later if you have been disadvantaged.
So the framework is there to protect you. What it relies on is you knowing to ask, and the agent being straight with you.
The five questions worth asking any agent
Ask them of me. Ask them of anyone you are considering. Save this list, or send it to whoever is helping you decide.
- Do you, your family, your staff, or any company you are connected to have any interest in buying my property?
- Will you tell me about every genuine offer that comes in, not just the ones you think I should take?
- If a conflict of interest ever arises, exactly how will you handle it?
- Would you recommend I get independent legal advice if anyone connected to your agency ever wanted to buy my property?
- Can my family sit in on our meetings and contact you directly?
You are entitled to a clear answer to every one of those. If any of them get a vague answer, or a “don’t worry about that”, that is your answer.
Our policy, in writing
I will put ours on the record, because I think you should be able to hold us to it.
Our standing policy is simple. Naked Real Estate® does not buy the properties we are engaged to sell. Not personally, not through family, not through a company.
If some exceptional circumstance ever arose, we would not lean on a signature and call it fair. It would require full written disclosure, an independent licensed valuation obtained independently of us, independent legal advice for the seller, and a purchase price no lower than ten per cent above that valuation. Depending on the situation, we would also consider stepping aside as the selling agent altogether, so the owner has completely independent representation. In more than two decades, that situation has arisen once.
Why ten per cent above an independent valuation, rather than at it? Because if there is even a hint that the person selling your home might benefit from it going cheaply, the only fair answer is to remove the incentive entirely, and then some. A discount is exactly what should never happen.
I would rather tell you all of that up front than have you wonder.
Bring your family into the room
Here is the other half of it, and I mean this genuinely.
If your children, your family or your friends want to be part of the conversation, bring them. If they want to sit with us and go through everything together, or ring me directly and ask me whatever they like, that is fine by me any time. I will happily explain the price, the strategy, the fee and the process to anyone you want in the room.
An agent who wants you on your own is telling you something. An agent with nothing to hide has no reason to mind who is listening.
If something does not feel right
- You have somewhere to go, and you should use it.
- You can check whether an agent is licensed, and their status, through Consumer Protection WA.
- You can make a complaint to Consumer Protection WA if you believe an agent has breached their obligations.
- Complaints can be referred to the State Administrative Tribunal, which has power to discipline agents, including reprimands, fines, and suspending or cancelling a licence or registration.
- If real money is at stake, see a lawyer. Do not just hope it works out.
Why I have bothered writing this
Most agents you deal with in these hills are decent people doing an honest job. This is not a piece about them.
It is a piece about the fact that you are selling the biggest asset you own, often at the hardest moment of your life, and you should not have to take anyone’s character on faith. Ask the question. Get the answer. Write it down.
Our whole business is built on being able to answer questions like these without flinching. If you are thinking of selling in the Perth Hills and you want a straight conversation about what your home is worth and how we would go about it, with whoever you like in the room, get in touch.
Ask the question. Get the answer. Write it down. The right agent will not be offended by any of it. They will expect it.
Book a free, no-obligation appraisal
Important note
This article is general information about a seller’s position in Western Australia. It is not legal advice and does not take your circumstances into account. Rules and codes change, so check the current requirements with Consumer Protection WA, and if you are concerned about a transaction, seek advice from a qualified lawyer.
