LAND AGENTS' DEPOSITS

Evening Post, Volume CXII, Issue 121, 18 November 1931, Page 15

LAND AGENTS' DEPOSITS

The president of the Real Estate Institute of New Zealand (Mr. Douglas M. Spedding) writes to "The Post" CQBveying the result of his' investigations of a case recently brought before Parliament by petition. He states the law and general practice regarding sales and deposits as follows:—"When a land agent receives an authority to sell a property he is-entirely dependent on his principal for the particulars regarding it, and terms on which it is to be sold. He merely acts as the agent of the principal and endeavours to find a buyer on those "terms and conditions. Having found a buyer, reasonable prudence will dictate to the purchaser that he should employ a solicitor '■ protect hia interests. It is usual, however, that one of the conditions of the sale is the payment of a cash deposit as an earnest of good faith, on the part of the purchaser, the deposit so paid being a portion of the total purchase'money. The commission due to the agentfor effecting the sale is a debt due by the vendor (unless otherwise stipulated), and the law allows the agent to deduct his proper commission, and he must then- account to his principal for any residue remaining in' his hands. Mr. Spedding sets out the facts of the particular case as -he ascertained them, liis conclusion being, in brief, that the agents acted in accordance with the law, and that it was not their fault that the sale was not completed. Mr. Spedding adds: "I would like to state that the Real Estate Institute of New Zealand will give its fullest support aud assistance towards securing any amendment of the Act that will give greater security and safety for either, or both, purchaser and vendor,] as long as -it—can be shown that such amendments are practicable and do not make the position too cumbersome and difficult of operation. The institute is itself moving to have the Land Agents Act amended at the first possible opportunity, and will bo ouly too pleased to co-operate in having the Act amended along reasonable lines. In conclusion, I would like to mention that the institute is at all times willing to investigate any disputes between its members and the public. The rules of the institute provide for full disciplinary measures being taken where necessary."