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To refer or not to refer, that is the question?

27 Nov 13

It would seem that the hornets’ nest has been disturbed on this one – can an Agent refer their client to a Conveyancer?

The short answer is yes.

The long answer is yes BUT…..

  • If you do refer, make absolutely certain that there is no way you can be accused of referring to a particular Conveyancer because of some side deal/kickback (no matter how small), Christmas lunch option, or any other matter; AND
  • If you do refer, make absolutely certain you are acting in the best interests of your client at all times (and not because of any reason that might benefit you or your firm).
  • If you do refer, and do not follow the previous two dot points (or cannot defend your decision on an evidentiary basis regarding the above) then expect that a maximum penalty of $20k could apply to you.

Too simplistic? Probably.  Final word – if you can’t defend your decision to refer when and if you are questioned and end up on the front page of the Advertiser, then think again about your decision. Is REISA being too conservative? Probably but after all, it is your business decision to refer or not to refer!