Understanding the ‘Order on the Agent’ When Buying Property
Buying a property in Sydney, particularly in sought-after areas like the North Shore and Northern Beaches, can be an exciting but complex process. At Sp. Property Buyers, we aim to simplify every step for you. One important aspect to understand is the ‘Order on the Agent’—a document that affects how your deposit is handled.
What is an ‘Order on the Agent’?
An ‘Order on the Agent’ is a legal instruction given to the real estate agent by the seller’s solicitor or conveyancer. It tells the agent how to distribute the deposit funds held in trust. Typically, this document ensures that the agent’s commission is paid and that the remaining deposit goes to the seller or their solicitor.
Why Should You Care?
As a buyer, knowing how your deposit is managed is important because:
- Transparency: You’ll have a clear understanding of where your deposit goes.
- Security: The process ensures that funds are released correctly and according to legal agreements.
- Smooth Transactions: It helps avoid disputes between parties involved in the sale.
How Does It Affect You?
When you pay your deposit, the funds don’t go directly to the seller. Instead, they are held in trust by the real estate agent. Before settlement, the seller’s solicitor or conveyancer issues the ‘Order on the Agent,’ instructing the agent on how to allocate these funds. Typically, this means:
- The agent takes their agreed-upon commission from the deposit.
- The remaining amount is transferred to the seller or their solicitor.
This process happens behind the scenes, but it ensures that everything is handled legally and correctly.
What Should You Do as a Buyer?
At Sp. Property Buyers, we guide our clients through every stage of their purchase. Here’s how you can stay informed:
- Ask your solicitor or conveyancer to review the ‘Order on the Agent’ to ensure everything is correct.
- Understand where your deposit is held and when it will be released.
- Work with a trusted property expert to navigate the process smoothly.
Final Thoughts
The ‘Order on the Agent’ is a routine but important part of your property purchase. At Sp. Property Buyers, we make sure our clients understand every financial and legal detail so they can buy with confidence. If you’re purchasing a home in the North Shore or Northern Beaches, reach out to us—we’re here to help you every step of the way!
Marcus Gould LREA.
Director and Senior Buyers Agent.