FORMAL WARNING TO PROPERTY FINDERS
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As you know I have been talking to the legal department of the newly formed REAA to try and get some answers on their legislation.
Basically they stated they couldn’t interpret their own legislation, as it was so poorly drafted, and would rely on the courts to decide it.
Putting aside the total ridiculousness (word?) of that position I tried to get some sort of opinion form them to protect my own activities and those of my clients.
As I still wait for their promised responses and opinion they appear in the last 6 weeks to have suddenly decided they can interpret their own legislation and have embarked on a campaign of attacking finders round the country, both directly and through Real Estate Agents.
It appears they have decided that double settlements are fine but any form of assignment is not allowed.
I can only assume that because RE sales are at a stand still and they have a budget to spend and presumably prosecution targets to meet that they have suddenly decided what was “impossible for us to give a binding opinion on” is now suddenly clear.
It will take some time and money to counter attack this behaviour so treat this is a formal warning in the mean time to STOP assigning property immediately, especially if an agent is involved.
There will be a solution I am confident but unless you want to be the test case then stop.
They have already let slip that they are capturing and archiving all finders sites and if you get in their sights they will prosecute you for all sales post REAA, not just the one you get fingered for.
So my recommended course of action, (this is just my opinion at this point), is to stick to double settlements. This involves being in a position to settle a property and taking an equitable interest in the property prior to selling it.
This is not as complicated as it sounds and for many/most finders will be a workable solution for now.
I will put more comprehensive information together ASAP and keep you informed of any inevitable court cases but in the mean time be careful.
Yet another small business industry is being treated like a criminal organisation and the public lose out on benefiting form finders unique skills.
We are now the only country in the world that doesn’t allow buyers agents/finders, a ridiculous situation that we will work to correct.
BUT IT MAY TAKE SOME TIME!!
Stay Inspired and STAY SAFE ~ Dean Letfus
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