Understanding Private Treaty Sales and Property Encumbrances

1. Sale by private treaty refers to the sales that occurs in case when the property is been listed
for the sales at asking price under which buyer makes offer to an agent, thereafter who
presents an offer to seller who decide on whether to accept an offer or not.
2. As per rule 15 of PSBA regulation agency and consumers can be protected against
misleading advertising in private treaty sale. Moreover, agency and consumer can inspect
the property after seeing an advertisement so that they can be protected from false
representation.
3. Encumbrance is the claim against the property by the party that is not the owner. For
example- Mortgages, Easements, Property tax liens etc.
4. Torrens title- It means when an individual buys the land, he or she get the Freehold or
Torrens title because purchasing provides with both property and land.
Strata title- It is the title under which an owner owns only the inside unit and not the outside
unit.
5.
 Establishing and building confidence and the trust in an agency and its
representatives
 By making the buyer feels as valued
 Promoting and maintaining an effective relationship with buyer.
6.
a) As an agent I would be getting monetary benefit in form of commission.
Incentive benefits are also gained by me in qualifying the buyer.
b) Seller will earn large amount of profits.
Sale of seller increases.
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He must know the buyer's interest in the property.
Agent must assess the financial condition of the buyer.
He should take care that the buyer is not involved in any illegal or misleading activity.
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 Business associates
 Buyer's agent
 Family member and friends of buyer
 Providers of professional advice that involves accountants, legal representatives, property
advisers etc.
 Spouse or partner
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 Active listening
 Providing an opportunity for seller or the buyer to clarify their understanding of the sales
process
 Soft questioning and seeking feedback from the sellers or buyers to confirm own
understanding of their expectations and needs
 Summarizing and paraphrasing to check understanding of seller or buyer message
 Using appropriate body language
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 Clear questions
 Different question types
 Reflection
 Using silences
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 Buying intentions
 Capacity to purchase
 Financial limits
 Motives
 Needs
 Preferences
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 Sales person and seller can attract large customers at times of open for inspection as in this
time they invite more and more buyers for inspection
 Open for inspection reduces private appointments for sellers which in turn leads to fewer
interruptions and less convenience
 Through open for inspection buyers can enjoys flexibility with respect to their time
 Buyers can schedule inspections for several properties that are of their interest
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a) Cleaning the property
Repairing obvious problems
Spruce up the garden
Arranging the furniture and furnishings artfully
Lock up valuables
b) Ownership papers
Any renovations or modifications made