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RES Course Day 2

Course notes for property agent wannabe

Apps

  • RECALC (the free version will do)
  • Big 4 Agencies have 10+ apps

Dealings with Interest in Land

Agent owe a fiduciary duty to their principals and the duty of care to others.

Principal = the first to ask

  • Specific performance is a court order requiring a party in breach (or threatening to be in breach) of a binding contract to perform their obligations under the contract.
  • Injunction is an authoritative warning or order.
  • Rescission is the revocation, cancellation, or repeal of a law, order, or agreement.
  • Law of contract
    • Agreement with an offer -> acceptance
    • Enforceable by law
    • Consideration = money worth, service rendered
  • Civil Law Act
    • not in writing = not enforceable
  • Must bnot be illegal
  • 4 essential elements
    • Offer
    • Acceptance
    • Consideration
    • Intention to create legal relations

Option to purchase

  • 1 Party bounded
    • The seller
  • Offer + Acceptance = Agreement
  • Consideration: The “option money” usually 1%
  • Option usually 2 weeks expire
  • Exercise with 5% “the Deposit” (less option money) = accepted
  • Stakeholder clause
    • Buyer is weaker
    • So better for CVY to hold until completion
    • If seller bankrupt, this deposit with stakeholder still claimable
  • Invitation to treat = offer to invite offers
  • Past Consideration is no Consideration
    • Cannot perform service (buy/sold), then discuss reward (commission)
  • Letter Of Intent (but Subject To Contract)
    • Optional
    • Can straight to TA
  • 4P = Parties, Property, Price and any other agreed Provisions
    • Enforceable, even tho not OTP
  • Condition Precedent = condition that suspends the coming into effect of a contract unless or until a certain event takes place.
    • Contract signed but not binding
  • Condition Subsequent = happening of a condition subsequent may invalidate a binding contract

Breach of Contract

  • Force Majeure
    • to remove liability for unforeseeable and unavoidable catastrophes that interrupt the expected course of events eg. natural disasters, war

Law of agency

  • Concept of authority central to law of agency
  • Explicit marketing consent needed from seller to agent
  • Usually only agreement with seller
    • Buyer can change requirements anytime, and take very long
  • Exclusive agreement difficult
    • Big 4 easier – support
  • Sole agency MAX 3 months
    • If owner has sole agent, buyer agent should ask for contact to the agent – being ethic
    • Promise will present all offers, will co-broke
  • Some will refuse co-broke

Creation of agency

  1. By Agreement
    • Even by oral
  2. Agency By Estoppel
    • A legal principle that bars a party (principal) from denying a certain fact owing to that party’s previous conduct and/or actions.
    • prevented from denying
      - Eg. Tenant can have the rights to the agreement as he was led to believe the agent is employed by the landlord
    • The landlord, by estoppel, is “employing the agent” – Landlord must be careful with their action/oral
    • Promissory Estoppel
      • Make a promise + reasonable reliance -> liable to damage
  3. Necessity
  4. Ratification
    • Appointed agent A (non-exclusive), but later use agent B by signing OTP – by ratification B is appointed
    • Legally OK, but morally not OK (a hijack)
    • Created retrospectively
  • Undisclosed Principal
    • Eg. No need to disclose buyer identity

Commission

  • Seller min 1%
  • Set aside 10% for marketing

Sole Agency

  • Sole
    • Owner can still sell/rent on his own
  • Sole & Exclusive
    • Even owner cannot sell
    • Eg. project launches
  • Sub-agency
  • Actual/Usual authority is the same as agency by agreement
  • Apparent/Ostensible authority is the same as agency by estoppel

Claim of damages

  • Contributory Negligence = contributed to the accident
  • Volenti Non Fit Injuria = Volunteer to do, any injury is your own fault