Question
of the week Question of the week

Curious. Interesting. Informative.

23 May 2015

Providing a paperless contract to the agent

Sale, Purchase, Mortgage, Lease
Victoria

Asked

Hi there, I have been in the practice of sending the contract in PDF format to the real estate agent by email without a problem - until now. This most recent sale, the agent is insisting that I provide 5 bound copies (and insert copies of the Rules of Auctions). I pointed out that I do not do this as the agent is able to print the required copies from the PDF file as sent. They are now stating that their personal indemnity insurance does not cover errors or omissions that may occur as a result of printing the contract.

Am I obliged to do as they instruct? Is their insurance problem mine? This may seem trivial, but is a matter of principle to me. This is the first time that I have struck it.

Answered

I understand your concern. Considerations are:

  1. Until recent years it was certainly common practice for the vendor's representative to provide multiple hard copy contracts.
  2. Email is an effective means of communication.
  3. Providing the contract by email does require the agent to bear the responsibility of physically printing the document and we all know that human error can create catastrophes.
  4. I doubt that the professional liability policy would in fact specifically address this issue. I am more inclined to think that it is a risk minimisation decision by management, one that I am aware that other agents have also adopted.
  5. If you do not comply with the agent's request, the issue will be referred to your client. I am inclined to think that your client is likely to regard it as falling within your sphere of responsibility to arm the agent with sufficient copies of the contract to allow the sale to proceed.

In relation to the Auction Rules. These should not be included in the contract.

They relate to the agent's regulatory duties and have no place in the agreement between seller and buyer. The agent is obliged to arrange for its compliance with the rules.

However you can, if you wish, include them.

Regards Mentor