Is Your Real Estate Agent Receiving Referral Fees from Conveyancers?

Stonnington Conveyancing is a member of the Australasian Conveyancing Group.

On Wednesday, the 9^th of August, 2023, the ABC produced a report titled "Conveyancer calls out real estate referral payments, claiming they're 'unethical' and could hurt homebuyers".

The key points from this article were

• Three states have banned legal firms from paying real estate agents for referrals (The practice is illegal in Western Australia, South Australia and Tasmania.)
• Law experts and real estate insiders say referral payments are widespread in other parts of Australia (eg. Victoria, New South Wales, Queensland, Australian Capital Territory & the Northern Territory)
• While some experts believe it's unethical, businesses say it's an important marketing tool.

And, most importantly, if you are buying or selling a property in Victoria, New South Wales, Queensland, Australian Capital Territory or the Northern Territory, you should note that the article also said

"And experts warn people buying and selling their homes could end up paying the price, if the business puts the interests of the real estate agent ahead of theirs."

and

"Real estate agents receiving fees for referring conveyancers could create conflicts of interest, one legal expert said."

Stonningon Conveyancing does not pay referral fees

Stonnington Conveyancing is completely independent and has NEVER paid Commissions, Kickbacks or referral Fees to Agents or other Referrers.

They recommend us because we are highly professional & do great work and give great service!

Our advice for buyers & sellers in Victoria, NSW, Qld, ACT & NT

Vendors and Purchasers should ASK the following two questions of the Real Estate Agent (preferably in writing, by e-mail, so you can retain a copy of their response & the person making the referral is answerable for it),:-

1. “Do you get paid any fee or other reward whatsoever from that Lawyer or Conveyancer that you have recommended if I choose them to Act for me”?

2. "How can I be satisfied that if something goes wrong on the file, especially if caused by you as Agent, that the Conveyancer will look after ME ahead of YOU"?

If you need further clairification of the issues raised in this article or the risks to you when you are buying or selling property, feel free to contact Stonnington Conveyancing on +61 3 9813 8333, email us at malvern.vic@acgol.com or use our contact form to send us a message.

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