The Buyers Advocate – Duties & Responsibilities

buyers advocate

Buyers advocates are still a somewhat rare sight in today’s property market and many buyers may not know how we work and what our duties and responsibilities are. Our responsibilities span across various aspects of the purchasing process, offering indispensable aid to buyers. This article explores our role, responsibilities, and the legislative framework that governs how buyers agents operate in Victoria.

What is a Buyers Advocate?

A Buyers Advocate is a licensed professional specialised in searching for, evaluating, and negotiating the purchase of property on behalf of the buyer. Unlike real estate agents who primarily represent the seller’s interests, Buyers Advocates exclusively represent the buyer, ensuring their client’s best interests are preserved throughout the property acquisition process.

Roles

  • Property Searching:
    Buyers Advocates are tasked with identifying properties that meet their clients’ specifications. This involves extensive research and leveraging industry contacts to find suitable properties, often gaining access to off-market deals that the general public and many investors are not privy to.
  • Due Diligence:
    They conduct comprehensive due diligence on potential properties. This includes verifying property titles, checking zoning laws, evaluating building conditions, and ensuring compliance with local council regulations. This process minimises the risks associated with property investments and aids in making informed decisions.
  • Valuation and Appraisal:
    Understanding the true value of a property is crucial. A Buyers Advocate analyses market trends, assesses property valuations, and provides insights regarding the property’s worth. This expertise prevents buyers from overpaying and helps in negotiating prices that reflect true market value.
  • Negotiation and Bidding:
    Armed with robust negotiation skills, Buyers Advocates handle negotiations with sellers or their agents. For properties sold at auction, they develop and execute bidding strategies tailored to secure properties at optimal prices.

Responsibilities

  • Acting in the Client’s Best Interest:
    A fundamental responsibility underpinning their role is the duty to act in the best interests of the client at all times. This includes providing honest, unbiased advice and maintaining confidentiality regarding the client’s financial and personal information.
  • Maintaining Professional Integrity:
    Buyer’s Advocates must adhere to a strict code of ethics and conduct as mandated by regulatory bodies. They should avoid any conflicts of interest, and where unavoidable, disclose such conflicts to the client.
  • Compliance with Legislation:
    In Victoria, Buyer’s Advocates must comply with the Estate Agents Act 1980 (Vic) and the Australian Consumer Law (Vic) for matters related to property transactions. These laws dictate various aspects of their practice from licensing and operation to consumer protection.
  • Education and Advice:
    Providing clients with up-to-date information about the property market, explaining potential risks, and advising on property laws are also key responsibilities. They educate clients on market conditions, investment potential, and legal requirements.
  • Documentation and Record Keeping:
    They must maintain accurate records of all transactions, including communications with all parties involved. These records are vital for transparency and can be critical in resolving any disputes that may arise post-transaction.

Legislative Framework

In Victoria, the operation of Buyer’s Advocates is primarily regulated under the Estate Agents Act 1980 (Vic), which outlines licensing requirements, operational do’s and don’ts, and penalties for non-compliance. Additionally, the Australian Consumer Law (Vic) provides a safeguard for buyers against deceptive and unfair practices often associated with property transactions.

Further Resources:

Buyers Advocates offer a crucial service that streamlines the property buying process for individuals and investors alike. Their expert knowledge of the market, negotiation skills, and commitment to their client’s interests can mitigate the complexities associated with property purchases. For anyone considering entering the property market, engaging a Buyer’s Advocate can provide tailored advice and support, ensuring that their property investment is sound and secured against common pitfalls.

Further Reading: