AGENT’S COMMISSION ON UNBUILT HOUSE

Wanganui Chronicle, Volume 89, Issue 270, 15 November 1945, Page 5

AGENT’S COMMISSION ON UNBUILT HOUSE

QUERY IN PARLIAMENT (P.A.) Parliament Bldgs., Nov. 14. In the House of Representatives today, the Minister of Rehabilitation, Mr. Skinner, replying to a question by Mr. Clyde Carr (Govt., Timaru) and Mr. W. M Denham (Govt., Invercargill), said he did not think a land agent should claim commission on the cost of a house yet to be built if his only connection with the deal was merely the introduction of the purchaser. The questioners had asked the Minister if he had seen a Dunedin report that if a soldier bought a section on which to build a house costing between £l5OO and £l6OO. the land agents’ commission would, in some cases, be between £4O and £5O. Thequestioners asked the Minister 1o consider fixing the commission in such cases, so as to reduce the cost ol homes for returned servicemen. They said it had been demonstrated that in certain cases the commission was collected where the business had not been completed and the house never built. The Minister said commissions had been fixed by the Real Estate Institute of New Zealand, and land agents adhered to this scale. In the case quoted. the erection of the dwelling should have been a senq/’ate transaction, in which case the commission and other charges would be based on the cost, of the section only. ]n some South Island towns a sale was effected of section, and house which had yet to be built, for a total consideration. This, entailed unnecessary fees, stamp duty, etc., and the purchasers should protect: themselves by arranging a separate transaction. In only two cases had practice of the nature referred to in the question come to the notice of the Rehabilitation Department, and in both instances steps were taken to ensure the protection of servicemen from any financial imposition. Such steps would be taken if further instances became apparent.