The James Conflict Management Policy

James Conflict
• A conflict occurs when we have two clients (with signed authorities) who have given us instructions to bid on the same property.
• We do not knowingly take on new clients on a property where we have an existing client who has given us instructions to bid.
• The conflict situation usually arises because of low stock levels or an unsual/rare property that has a lot of interest.
• To avoid other conflicts, we do not take money from agents or any other parties – ever. If we know the seller we tell our clients. We only act for buyers.

James Conflict Procedure
1. We are here because of stock levels – shortages and/or this is a very good property.
2. If you feel uncomfortable with us at anytime, we would release you from any agreements at no charge – we operate on a basis of complete trust – we trust you as well.
3. We will continue to be accessible to both of you however XXXX will not discuss price other than ancillary issues such as cost of renovations with the other party.
4. I (Mal) will issue all my thoughts on price via email and our reports – they will be identical save my comments on meeting your personal needs. You both have access to the full bid rating – it is exactly the same.
5. Any communication to the agent will see you all blind copied in.
6. Any communication on your specific price should no longer be via email as we have shared emails – all written amounts should now be via text.
7. Yes, it is possible for advocates to see other client files – however there is no financial advantage in this instance to do so (See Point 13) and in fact there are now significant financial disadvantages to operate unethically (dismissal).
8. XXXX and XXXX will no longer talk price to each other on the above property (both XXXX and XXXX know it could be a dismissible offence – it is a separate and specific paragraph in their contracts). Both have roughly equal experience at auctions and boardroom auctions (that is why they have been chosen). If we go to a boardroom auction or auction or any other form of sale, XXXX will be given a figure by one of you and XXXX the other. XXXX and XXXX will bid on your behalf until a purchase or a pass-in. You will be able to consult with XXXX in any situation as you normally would. You will be able to witness all negotiations if you so chose and it is appropriate.
9. It is important that you do not just focus on us as I believe there will be other interest as well. Information says XXXX potential bidders, maybe more.
10. We recognise this is stressful for you and we will commission a pest and building on both of your behalf (if you want one) – at shared cost. However, it will be your pest and building not ours. If either or both of you don’t wish to share costs or not wish to do them, then no problems.
11. You both are using different solicitors.
12. I/We will not discuss any details with you at any stage about the other party.
13. Commission: Irrespective of whoever is successful (if any of you are), our commission will be the same should both parties instruct us to bid above the reserve (the selling agent will nominate the reserve). We would charge the lowest. E.g. if one of our clients was on a search and negotiate (say 2%) and one on a negotiate only ( say 1%) then even if the search and negotiate client purchased our fee would be at the lower of 1%. In this special circumstance it is company policy to share all commissions equally should both parties instruct us to bid above the reserve. There are no financial advantages to advocates, but of course one of you still needs to purchase for the advocates to be paid – that is their financial incentive.
14. If we are to put an offer in from now to start the process you will both be advised to put the same offer in, however the initial and final offer amount and terms will be your choice. At this time and not before, we shall inform the selling agent there is multiple interest from us. If it is best offers we will submit both no matter what.
15. If we get into a negotiation stage not foreseen here, I will offer $1000 above the lower client’s final instructions on behalf of the higher client.
16. If something else unforeseen happens, I (Mal) will first notify you via email and then talk to you on the phone.
17. Finally if all else fails, we reserve the right to cease to work for any of you if we consider our involvement is not in your best interests.

Please be aware there are some advantages to this:
1) You know your competition is real
2) You will be told if the other party has dropped out
3) Shared pest and building costs if you so choose
4) Our services and experience and relationship with you.

There are no industry (REIV) guidelines as such, so I (Mal) have copied this one letter into the REIV legal advisor. If you or he can see anything that requires change, I will notify all parties. If you have any concerns about our company’s dealings with you in this matter, please contact me and, if not satisfied, then contact Peter Lowenstern at the REIV or the Complaints Dept at CAV.
Please feel free to consult your solicitor and show them this letter. The REIV legal department, our company solicitor Chris Farrell and an independent solicitor Michael Pharr are aware of this procedure for managing conflict. You will get a fair shake and our best efforts – absolutely no favouritism or wink and a nudge in this instance. But please note, you will in all likelihood still have to beat others.