REIQ Best Practice Guidelines v03.23 - Flipbook - Page 86
i.
what amount of commission the
Member C&I Agent is entitled to;
ii.
how the Member C&I Agent proposes
to take the commission (if they hold a
deposit or if an invoice shall be issued);
iii.
confirming the grounds under which
the Member C&I Agent is entitled to
the commission and authorised to take
the commission (as set out in the PO
Form 6); and
iv.
giving the Client reasonable time to
provide their response before the
Member C&I Agent will take further
steps to take their commission.
29. DEALING WITH THE DEPOSIT AFTER
SETTLEMENT
(a) If the deposit held by the Member C&I Agent
is sufficient to cover the Member C&I Agent’s
commission, then the Member C&I Agent may
deduct its commission from the deposit when
it releases the deposit to the Client (after the
Member C&I Agent has received notice in
accordance with Chapter 7A, section 26).
(b) If the buyer’s deposit does not sufficiently
cover the Member C&I Agent’s commission
and a balance is due and payable at settlement,
the Member C&I Agent should:
i.
ii.
account for the entire buyer’s deposit
after settlement as part payment
toward the Member C&I Agent’s
commission; and
issue an invoice for the balance
amount payable due on the settlement
date to be paid by the Client at
settlement from the sale proceeds.
30. ENTITLEMENT TO COMMISSION
(a) Member C&I Agents are entitled to their
commission as stated in the PO Form 6 REIQ
Essential Terms if they are the effective cause
of sale of the property, and:
i.
a contract for sale is completed; or
ii.
if the Client defaults under the contract
for sale and it is terminated by reason
of that default; or
iii.
if the contract of sale is not completed
and the whole or part of the deposit is
forfeited; or
iv.
the contract of sale is terminated by
mutual agreement between the Client
and buyer.
(c) If the Member C&I Agent does not receive a
response from the Client by the stated time or
if the Client does not provide a valid reason for
their dispute, the Member should seek
legal advice.
(d) If there is a dispute as to whether the Member
C&I Agent was the effective cause of sale, the
Member C&I Agent should contact the
REIQ for practice advice or obtain
independent legal advice.
31. AUCTIONS
If a property is being sold by auction, Member C&I
Agents must provide a copy of all relevant
documentation (including the contract for sale and
title search) to a Member Auctioneer prior to the
auction date.
Read more about the
effective cause of sale
(b) If a Client disputes a Member C&I Agent’s
entitlement to their commission, the Member
C&I Agents should send a notice to the Client
within 5 business days, stating:
REIQ BEST PRACTICE GUIDELINES
V08.23
86
