AIPP • THE ROLE OF THE AGENT
THE ROLE OF THE AGENT
Friend for life, invaluable asset, smooth-talker? The many guises of the overseas property agent...
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state agents might not always enjoy a fabulous reputation in the UK, but when you buy abroad, it is even more
important to fi nd a good agent. Of course you can avoid using them altogether, by buying direct from a vendor or a developer, but a good agent can be the key to fi nding your ideal property. So, what can you expect from an overseas
property agent, and how do you fi nd a decent one? For a start, the level of regulation differs from country to country and often the sale of property is unregulated. Some international property agents are members of AIPP, and bound by our professional code of conduct and disciplinary process. In certain countries, such as France and America, property agents need to be registered and will have undergone some sort of basic training; in others every barman and waiter thinks he is an agent. You’ve all heard stories about dubious practices from agents, but there are equally many great agents out there who are the subject of many happy buyers’ effusive testimonials. Because you’ll be navigating unfamiliar
terrain and processes, and probably won’t speak the language fl uently, a decent agent can be a great asset. They can act as an informal translator for you, offer you support and reassurance throughout the whole buying process, and introduce you to the best the local area has to offer. Of course, remember that many agents are acting for the vendor, in that their commission will be paid by them and not you (do clarify the fee scenario from the start), but a good agent will also strive to provide the best service possible to the buyer. You could of course employ an independent
property fi nder or agent, who will be acting purely on your interests, put this will cost you (often 3% of property’s price, plus possibly an
8 AIPP CONSUMER GUIDE
initial search fee or retainer). But, whichever you use, a good agent can
provide access to a wide range of properties and save you time and hassle, so how do you separate the wheat from the chaff? Obviously a recommendation from a
satisfi ed buyer is a great thing, but this may not be available, and you need to make your own judgement call. Start by registering with several agencies and seeing what they produce when you tell them what you are after. How well have they listened to you when
they come back with some suggestions? Have they stuck to your budget and specifi cations? A good agent will spend time sitting down with you to get to know you, and then guide you round a series of suggestions. It’s always wise to determine what you should expect from them from the word go: just what will they help you with throughout the whole process? Will they provide ongoing after-sales support, or will their role in the purchase end once you’ve signed the purchase contract? Do not be afraid of testing the competency of an agent from the very start. Slick marketing spiel is one thing, but how much do they really know about the local market? Do your research and ask specifi c questions about taxes, healthcare, the rental market etc. They should also be a source of local knowledge, and a good agent should never make you feel you are asking too many questions. If they don’t know all the answers, they should at least undertake to fi nd out the information for you promptly. As well as advising you on the mechanics of the purchase process, a good agent can also help guide you through alien bureaucratic requirements such as setting up a bank account, getting a tax identifi cation number, and explaining the role of the notary. But do not forget that you should always
take independent legal advice; no agent can replace the need for comprehensive advice from a qualifi ed lawyer, who is independent from the agent and vendor, and acting only in your best interests. Whilst your purchase agreement will ultimately be with the property developer or vendor, you may be asked to sign a ‘reservation agreement’ with the agent to secure a property from the market whilst you consider the purchase contracts. This is typical if purchasing ‘off-plan’. Never pay a reservation fee without a signed reservation agreement in place, and ensure that you are fully aware of the terms, such as precisely who that agreement is with and under what conditions, if any, is the reservation fee refundable.
Top Tips
• Ask lots of questions, and ensure you’re clear on the agent’s role and services from the outset
• Typically agents are acting for, and paid by, the vendor. Clarify the fee structure from the outset; in some countries the agent’s fee is split between the vendor and buyer
• Consider whether you want to employ a buyer’s agent or property finder who works for you, rather than the seller
• In some countries, agents need to be licensed. Check your agent has the correct licenses, if required, and where possible use a member of the AIPP
• Before paying a reservation fee to secure a property, ensure that you have a comprehensive reservation agreement in place which states clearly the full terms of the reservation
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