LAND AGENTS' PRACTICE

Press, Volume LIV, Issue 16163, 18 March 1918, Page 6

LAND AGENTS' PRACTICE

TWO COMMISSIONS. The practice adopted by land agents of receiving commissions from both parties in exchange transaction c.ime up in aii argument during the hearing of on fiction at the Supreme Court at Auckland on Friday before Mr Justice Hosking. The case was otic in which a claim was made for specific performance of agreement to exchango properties. His Honour, a t the commencement of the hearing, intitliated that ho thought it was a question for argument u'lietuer specific performance should be granted it an agent had accepted commission irom both parties to an exchange. The Court, he said had already determined tiiat to take commission from both sides, and to act for neither, was a practice that was not reastmablo nor honest. The fact that the practice was a well-established one was of 110 moment. Why it should be justified where the transaction was ah dxchahge and not a sale he did hot know.

Counsel said the practice was of such general _ knowledge that any man who dealt with a land agent in an exchange was aware that the other side paid commission too. His Honour: The practice has been condemned by the legislature. The Question is whether the land agent who accepts the position of acting for both parties can be impartial under such circumstances. Is an ageiit anything more than a register upon which people record properties they wish to dispose of or to acquire? Fire shillings would be enough to pay for such service. "Why do they get these enormous commissions if it is not for the rendering of bome service they can pive, by having acquired skill and experience? Counsel: The benefit of such skill and experience should be given to both parties. His Honour: His duty is to make it clearly known to both parties that he is receiving a commission from each. If ho does this, aiid the principals elect t-0 go on, then it is a different matter. Counsel: I contend that this practice is so unifersiil that all parties should be deemed to be cognisant of it. His Honour: If this is the case, the sooner the practice is ended bv the Court or the Legislature the better.