Your friend, Barry, who lives in another town, phones you to complain
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Your friend, Barry, who lives in another town, phones you to complain

Agency law: Part 2

Your friend, Barry, who lives in another town, phones you to complain about the real estate agency that recently sold his home. He tells you:

‘I’ve since become friends with the young couple, Jack and Jenny, who bought the property. They don’t think they got good service either. Here’s what they told me.

The salesperson started by telling them that they should just drive by and see if they liked the look of the house from the street. Well, they did that, and they liked it. So he said he’d get around to showing them through some time. They had to chase him to get through the house!

But it gets even worse! Jack and Jenny fell in love with the property and wanted to make an immediate offer. It was nearly 5.00 pm, and the salesperson said he’d bring the agreement forms to me the next day. Well, they really didn’t want to wait, so they asked if they could just pop around and present their offer. He didn’t mind at all, so they got him to phone me and make the appointment. We negotiated the agreement around my dining room table!

You know, looking back, I don’t think that salesperson earned very much of his share of the commission at all! The agency really wasn’t any better, because they just didn’t seem to accept any accountability for his behaviour.’

Briefly explain to Barry the requirements of

• introduction

• instrumentality, and

• effective cause

and describe whether the salesperson met his obligations in each case. Give at least one reason to support each of your answers.

Hint
ManagementIt can be regarded as a promotional payment with an intention to buy a property and it is provided to an agent in case of any effective cause is stated. In this case, introductory fee cannot be considered for the Agent as his role in the agreement formation and purchase is not made (Moneyhub, 2022)....

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