Estate Agents
When Should Estate Agents Consider an Instalment Sale?
An Instalment Sale Agreement is not intended to replace every traditional property sale. It is an additional solution that can create opportunities where a conventional transaction may be difficult or less attractive.
Side-by-Side Comparison
Traditional Sale vs RentAssist Instalment Sale
See at a glance where a RentAssist Instalment Sale may create additional opportunities compared with a conventional property transaction.
Consider an Instalment Sale When…
Scenarios where RentAssist may add value
Each transaction is unique. The scenarios below highlight where an Instalment Sale Agreement may be worth exploring with your client.
The Seller Wants to Achieve a Higher Selling Price
Because the purchase price is agreed and locked in at the start of the Instalment Sale Agreement, and buyers may benefit from an interest-free payment structure, some buyers may be prepared to pay a premium over the current market value in exchange for flexible payment terms. This can create a win-win outcome for both buyer and seller.
The Property Is Taking Too Long to Sell
If a property has been on the market for an extended period, an Instalment Sale Agreement may open the property to a broader pool of buyers who are looking for an alternative to traditional bank finance.
The Buyer Does Not Qualify for a Traditional Bank Bond
Some buyers have sufficient monthly affordability but are unable to obtain conventional bank finance. An Instalment Sale Agreement can provide an alternative path to property ownership.
The Seller Requires Ongoing Monthly Income
Rather than receiving the full purchase price immediately, some sellers prefer predictable monthly income over an agreed period while retaining ownership until the agreement has been completed.
The Seller Wants Additional Security
The seller remains the registered owner until the terms of the Instalment Sale Agreement have been fulfilled, providing an additional layer of security throughout the transaction.
Estate Agents Can Expand Their Service Offering
Offering Instalment Sale Agreements gives estate agents another professional solution when a conventional sale is not the best fit for their client. It demonstrates innovation, flexibility and a commitment to finding practical solutions.
Opportunity for a Higher Commission Value
Where the agreed purchase price under an Instalment Sale Agreement is higher than the property's current market value, the estate agent's commission may also increase because it is based on the agreed selling price.
Earlier Commission Payment
Under the RentAssist legal structure, and subject to the mandate and commission agreement, the estate agent's commission may become payable upon registration of the Instalment Sale Agreement, rather than waiting for final transfer of ownership.
Full Professional Support
You do not need to become an Instalment Sale specialist. RentAssist works with specialist attorneys who prepare the legal agreements, oversee the legal process and support you throughout the transaction. You remain the trusted property practitioner while RentAssist provides the specialist Instalment Sale expertise.
Outcomes, commission timing and pricing depend on the specific transaction, the signed mandate and commission agreement, and applicable regulatory requirements.
A Powerful Additional Tool for Estate Agents
Think of an Instalment Sale Agreement as another solution in your professional toolbox. Instead of walking away from difficult transactions, you may be able to help more buyers and sellers reach an agreement that benefits everyone involved.
Any referral, fee or commission arrangement is subject to written agreement and applicable regulatory requirements. Licensed estate agency activity must be performed through appropriately registered property practitioners and compliant business structures.
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Book a consultation to discuss how your sellers and buyers may benefit from a structured Instalment Sale Agreement — or apply to become a RentAssist Business Partner.