Login
ISCOVER
Fairfax Media has reported that brokers are demanding big kickbacks from property developers – but a peak body for developers is unaware of any such practice.
According to the Fairfax report, property developers claim that brokers are demanding commissions of up to eight per cent “for convincing clients to buy [their] properties”.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“Commission payments of more than $40,000 are being routinely offered for recommending $600,000 two-bedroom apartments, typically as investments for SMSFs,” the article said.
One developer told Fairfax he was “tired” of brokers asking for eight per cent commissions.
However, the Urban Development Institute of Australia told The Adviser to the best of its knowledge, brokers had been doing no such thing.
FBAA president Peter White also told The Adviser he had no knowledge of the practice.
He added he had no objection to brokers asking for commissions, as long as they were disclosed to the client.
He also said commissions needed to be “fair and reasonable” – and although it was unclear where to draw the line, eight per cent was excessive.
JOIN THE DISCUSSION