AU2008200371B1 - Transaction method and system - Google Patents

Description

24/01 2008 15:17 FAX 61 3 92438333 GRIFFITH HACK -IPAUSTRALIA a 005

AUSTRALIA

Patents Act 1990 COMPLETE SPECIFICATION Standard Patent Applicant(s): Gazillion Sales Pty. Ltd.

Invention Title: TRANSACTION METHOD AND SYSTEM The following statement is a full description of this invention, including the best method for performing it known to me/us: COMS ID No: ARCS-176663 Received by IP Australia: Time 16:24 Date 2008-01-24 -2- 00 O TRANSACTION METHOD AND SYSTEM c-I

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FIELD OF THE INVENTION The present invention relates to a transaction method and C 5 system, of particular but by no means exclusive application in the sale of real estate.

BACKGROUND OF THE INVENTION In one existing method for selling real estate, the owner and vendor of the real estate pays an agent (hence a 'real 00 estate agent') to arrange advertising, locate possible purchasers, and generally endeavour to sell the real estate for the highest price. The agent passes disbursements (typically advertising costs) on to the vendor and, if the real estate is sold, the vendor pays the agent a previously agreed commission. This commission, which is only payable if the real estate is sold, is typically a percentage for example of the sale price.

SUMMARY OF THE INVENTION According to a first broad aspect, the present invention provides a transaction system, comprising: an agent computing device of an agent of a vendor, the agent governed by a first agreement between the agent and vendor whereby the agent agrees to act for the vendor in attempting to find at least one purchaser of property, goods or services of the vendor for no commission payable by the vendor to the agent; wherein the agent computing device is configured to be controllable by a purchaser computing device adapted to electronically communicate with the agent computing device to sell the property, goods or services to the purchaser, including to receive a request to purchase the property, goods or services from the purchaser computing device, to provide access to conditions of sale pertaining to the property, goods or services to the purchaser, to communicate data to the purchaser computing device to enable a user operable control to be displayed on the purchaser computing device, the control operable by the 3 00 O user to indicate acceptance of the conditions of sale, to C receive acceptance data from the purchaser computing device indicative of the acceptance, and to respond to receipt of at least the acceptance data by arranging a first transfer S 5 of a sale price from the purchaser to the vendor and arranging a second transfer of a commission for selling the property, goods or services from the purchaser to the agent.

In one embodiment, the property, goods or services 00 comprises real estate. It will be appreciated, however, Cthat the vendor may in some embodiments provide goods (such as artwork) or services (such as acting services).

In one embodiment, the first agreement obliges the vendor to pay for or reimburse the vendor for disbursements associated with the attempting to find the purchaser, such as the cost of advertising the property, goods or services arranged by or on behalf of the agent.

It will be appreciated by those in the art that such disbursements do not constitute a commission, and are normally payable irrespective of whether the agent is successful in selling the property, goods or services.

The agent computing device may be configured to notify a vendor computing device of any sales of the property, goods or services. The system may include the vendor computing device.

In one embodiment, the system includes the purchaser computing device. In certain embodiments, the purchaser computing device is one of a plurality of like purchaser computing devices of respective purchasers.

In some embodiments, the agent computing device is configured to provide access to the conditions of sale by forwarding the conditions of sale to the purchaser computing device for display to the user.

-3A- 00 O The system may comprise a conditions of sale database CI storing the conditions of sale and accessible by the agent Ucomputing device. The agent computing device may includes Sthe conditions of sale database.

C-I The agent computing device may include a transaction module for accessing the conditions of sale.

According to a second broad aspect, the present invention provides a transaction system, comprising: 00 a purchaser computing device of a purchaser operable to control an agent computing device of an agent of a vendor, the agent governed by a first agreement between the agent and vendor whereby the agent agrees to act for the vendor in attempting to find at least one purchaser of property, goods or services of the vendor for no commission payable by the vendor to the agent; wherein the purchaser computing device is controllable to communicate a request to purchase the property, goods or services to the agent computing device, to access conditions of sale pertaining to the property, goods or services, to display a user operable control operable by the user to indicate acceptance of the conditions of sale, and to communicate acceptance data from the purchaser computing device indicative of the acceptance; and wherein at least the acceptance data is operable to control the agent computing device to arrange a first transfer of a sale price from the purchaser to the vendor and arrange a second transfer of a commission for selling the property, goods or services from the purchaser to the agent.

BRIEF DESCRIPTION OF THE DRAWINGS In order that the invention may be more clearly ascertained, preferred embodiments will now be described, by way of example, with reference to the accompanying drawing, in which: 24/01 2008 15:18 FAX 61 3 92438333 GRIFFITH HACK 4IPAUSTRALIA Z008 00 4 00 04 Figure 1 is a schematic view of a first phase of Sa transaction method according to a first embodiment of the present invention; zFigure 2A is a schematic view of a second phase of the transaction method of figure 1 according to the first embodiment of the present invention; Figure 2B is a schematic view of a second phase oof the transaction method of figure 1 according to an oalternative embodiment of the present invention; 00 10 Figure 3 is a schematic view of a third phase of Sthe transaction method of figure 1 according to an Cembodiment of the present invention; Figure 4 is a flow diagram of the transaction method of figure 1 according to the first embodiment of the present invention; Figure 5 is a flow diagram of a rental method according to a third embodiment of the present invention; Figure 6 is a schematic view of a transaction system according to a fourth embodiment of the present invention; and Figure 7 is a schematic view of the agent server of the transaction system of figure 6.

DETAILED DESCRIPTION A transaction method according to a preferred embodiment of the present invention is illustrated schematically in figures 1, 2A and 3. Referring to figure 1, in a first phase a vendor 102 of property (in this embodiment in the form of real estate) and an agent 104 for assisting in the sale of that property (hence a real estate agent in this embodiment) make a vendor contract 106. Vendor contract 106 is typically exclusive, that is, confers on agent 104 exclusive responsibility for attempting to find a purchaser for the property.

Under vendor contract 106, inter alia, agent 104 agrees to attempt to find a purchaser for the property for no COMS ID No: ARCS-176663 Received by IP Australia: Time 16:24 Date 2008-01-24 24/01 2008 15:18 FAX 61 3 92438333 GRFIHAC PUTALA [O0 GRIFFITH HACK IPAUSTRALIA R009 00 ri commission payable by vendor 102 to agen: 104, vendor 102 agrees to pay for any disbursements (such as advertising l'n costs) incurred by or on behalf of agent 104, and vendor 102 is informed of the commission that agent 104 will charge the ultimate purchaser. This vendor contract 106 is typically made only after agent 104 has appraised the property (including inspecting the property and providing Cfl vendor 102 with an estimated value based on current sales, o market conditions and the condition and location of the 0010 property), and advised vendor 102 on an optimal sale o strategy (including marketing, timing, and whether to well 0 the property by private treaty or auction).

In accordance with the terms of vendor contract 106, agent 104 advertises to or otherwise contacts possible purchasers 108, and endeavours to obtain the best sale price for the property. Agent 104 expla:.ns to possible purchasers 108 the terms of sale, including settlement period, any encumbrances on the property that might affect the ultimate purchaser and the fact that upon the sale of the property a commission will be payable by the ultimate purchaser to agent 104. This may be done individually with each possible purchaser 108 or en masse, such as before the commencement of an auction of the property.

Referring to figure 2A, the second phase of this embodiment is Illustrated schematically at 200. Each possible purchaser 108 that wishes to submit an offer to purchase the property must first make an agreement with agent 104; this agreement is termed a purchaser contract 202 hereinafter. Purchaser contract 202 obliges each Possible purchaser 108, should that particular possible purchaser 108 be successful and become the actual purchaser of the property, to pay agent 104 a commission equal to a stipulated percentage (In thiii example, of the sale price. Purchaser contract 202 also indicates that vendor 102 has given co nsent to the terms of COMS ID No: ARCS-176663 Received by IP Australia: Time 16:24 Date 2008-01-24 24/01 2008 15:19 FAX 61 3 92438333 GRIFFITH HACK 4IPAUSTRALIA Q010a 00 6 Cl purchaser contract 202, including the commission that is Sto be paid by the ultimate purchaser to agent 104.

Referring to figure 2B, however, according to another embodiment in the second phase 200' of this method agent 104 explains to all possible purchasers 108 that a purchaser contract 202 must be made by the successful Spossible purchaser 108 and agent 104 before a sale contract may be made by vendor 102 and the successful possible purchaser 108, and that only the successful o possible purchaser 108 (rather than all possible 0 purchasers 108 wishing to make an offer) will be required to make such a purchaser contract 202.

In both cases, once one of the possible purchasers 108 is successful (typically by making the highest offer for the property) and has made a purchaser contract 202 with agent 104, the third phase of the method is entered, as illustrated at 300 in figure 3. In this phase, vendor 102 and successful possible purchaser 108 (henceforth termed purchaser 108') make a sale contract 302. Sale contract 302 is, in this embodiment, typical of contracts for the sale of real estate. Next, the terms of the respect contracts 106, 202, 302 are fulfilled. Under sale contract 302, purchaser 108' pays vendor 102 the agreed sale price 304 and vendor 102 conveys to purchaser 108' the title 306 to the property. Under purchaser contract 202, purchaser 108' pays agent 104 the agreed commission 308. Under vendor contract 106, vendor 132 pays agent 104 the cost 310 of disbursements incurred by agent 104 in the sale of the property.

It will be appreciated by those in the art that other parties may and typically will be involved in this method. For example, there will commonly be a mortgage over the property with a creditor of vendor 102. In some cases this may mean that this creditor holds title 306 and COMS ID No: ARCS-176663 Received by IP Australia: Time 16:24 Date 2008-01-24 24/01 2008 15:19 FAX 61 3 92438333 GRIFFITH HACK 24/0 208 1:19FAX 1 3924833 GRIFIT HAK IPAUSTRALIA Q011i 00 -7- 0 wili be involved in the settlement, though it will be understood that this does not materially affect the method of this embodiment. Furthermore, purchaser 108' may be represented or advised by a buyer's agent, but such a buyer's agent is distinct from agent 104,~ who acts for vendor 102, and the participation of a buyer's agent also does not materially affect the method of this embodiment.

The method of this embodiment is summarized in flow diagram 400 in figure 4. At step 402, vendor 102 and o0 agent 104 make vendor contract 106. At step 404, agent o 104 attempts to find a purchaser for property of vendor 102, by contacting possible purchasers 108 (including explaining the terms of sale to possible purchasers 108).

At step 406, possible purchaserB 108 and agent 104 make respective purchaser contracts 202.

At step 408 it is determined whether agent 104 has been successful in finding a purchaser for the property. If so, the method continues at step 410, where vendor 1102 and purchaser 108' make sale contract 302.

At step 412, vendor 102 and purchaser 108' effect settlement under the terms of sale contract 302, including exchanging payment sale price 304) and title 306.

At step 414, purchaser 108' pays agent 104 the commission 308 under the terms of purchaser contract 202. At step 416, vendor 102 pays agent 104 for disbursements 310 under the terms of vendor contract 106. The method then ends.

If at step 408 agent 104 has not found a purchaser 108', the method continues at step 416, where vendor 102 pays agent 104 for disbursements 310 under the terms of vendor contract 106. The method then ends.

It will be appreciated that the method of this embodiment may also be used in the provision of other services. For COMS ID No: ARCS-176663 Received by IP Australia: Time 16:24 Date 2008-01-24 24/01 2008 15:20 FAX 61 3 92438333 GIF~ AK-IASRLAIj1 GRIFFITH HACK 4 IPAUSTRALIA Q012 00 -8- 0 example, rather than selling his or her property, the owner of the property may wish to be a landlord rather than a vendor, and desire to lease the property. The owner thus employs agent 104 to find a tenant and to manage the ongoing maintenance of the property and collection of rent. The method thus proceeds in a manner similar to that shown in flow diagram 400 of figure 4, CC) except that the commission now relates to a fee for o securing a tenant, maintaining the property and collecting the rent. This commnission may, as a result, vary over the o0 life of the agreement between the owner i-nd agent. Also, 0 while in one version of this embodiment the present invention is employed-in the payment of all portions of the commission (hence, the tenant pays the agent a commission that may be notionally broken down into three portions: for locating a suitable tenant, for maintaining the property and for collecting rent), in other versions the present invention may be employed in only, for example, the location of a suitable tenant, or in the collection of rent, or in the location of a suitable tenant and the collection of rent.

One example is illustrated in flow diagram 500 of figure At step 502, the owner of the property and agent 104 make an owner contract, under which the own-er agrees to pay agent 104 for any disbursements incurred by or on behalf of agent 104 in locating a suitable tenant. At step 504, agent 104 attempts to find a tenant for property of owner, by contacting possible tenants LOB (including explaining the terms of sale to possible tenants, including that a 'Tenants Commission Applies'). At step 506, possible tenants and agent 104 make respective tenant contracts, under which the possible tenants agree to pay a commission to agent 104 should they become the successful tenant.

At step 508 it is determined whether agent 104 has been COMS ID No: ARCS-176663 Received by IP Australia: Time 16:24 Date 2008-01-24 24/01 2008 15:20 FAX 61 3 92438333 GRIFFITH HACK 24/0 208 1520 AX 1 3 243333GRIFI~hHAC IPAUST1RALIA Z0O13 00 -9- 0 successful in finding a tenant for the property. If so, the method continues at step 510, where owner and tenant make a rental contract.

At step 512, the tenant pays the owner rent under the terms of rental contract. At step 514, the tenant pays agent 104 the commission under the terms of tenant en contract; this commission may in some cases include a whether described explicitly as such or not associated with locating the tenant for the owner, but in o0 many cases will simply comprise a commLission payable with o the first rental payment.

At step 516, the owner pays agent 104 for any disbursements under the terms of the owner contract. This will initially immediately after the tenant is found) include the cost of advertising the property to possible tenants.

Next, it is determined whether there is a continuing tenancy and, if so, the method returns such as a month later to step 512 where rent is again paid. In the second and any subsequent traversals of steps 512 to 516, the commission payable by the tenant to agent 104 (at step 514) and disbursements payable by the owner to agent 104 (at step 516) may be different from those payable at the first traversal. The commission may be exclusively for the collection of rent without a component for locating a tenant, and the disbursements will generally include no component for advertising the property to possible tenants (though it may include the cost of repairs or other maintenance).

If at step 508 agent 104 has not found a tenant, the method continues at step 516, where the owner pays agent 104 for disbursements (typically for advertising) under the terms of the owner contract, then continues at step COMS ID No: ARCS-i 76663 Received by IP Australia: Time 16:24 Date 2008-01-24 24/01 2008 15:21 FAX 61 3 92438333 GIF~ AK- PUTAI 1 GRIFFITH HACK 4 IPAUSTRALIA Q014 00 ci 518. However, without a tenant there is continuing tenancy, after step 518 the method ends.

If at step 508 agent 104 did find a tenant but, at step 518, the tenancy is not continuing, the method ends.

The skill person will readily appreciate that the method described above according to the above embodiments may o also be employed in the sale of goods. In such cases it 0010 may be convenient to implement the invention in a system.

o Figure 6 is a schematic diagram of a transaction system 0 600 according to an embodiment of the present invention.

System 600 includes a vendor server 602 of a vendor of goods, an agent server 604 of an agent who represents the vendor in attempting to sell the goods, and a remote purchaser computer 606 of a possible purchiaser of the goods. The relationship between the vendor and the agent is governed by a vendor contract comparable to vendor contract 106 of the transaction method of figure 1.

It will be appreciated by those in the art that, although figure 6 includes only one purchaser computer 606, in practice system 600 would typically include a plurality of or indeed many comparable purchaser computers 606 of respective possible purchasers. Purchaser computer 606 is in electronic coimunication with agent sanver 604 via a computer network, in this embodiment in the form of the internet 6081 vendor server 602 and agent server 604 are similarly in electronic communication via the internet 608. System 600 also includes bank servers 6l0a, 610b, 610c of the banks used by, respectively, the vendor, agent and purchaser; the bank serve rs 610a, 6l0b, 610c are in electronic communication respectively with vendor server 602, agent server 604 and purchaser computer 606, and also in mutual electronic communication, via the internet 608.

The agent acts for the vendor, by offering the goods of COMS ID No: ARCS-176663 Received by IP Australia: lime 16:24 Date 2008-01-24 ii 00 the vendor on agent server 604. A purchaser, operating his or her purchaser computer 606, can peruse the vendor's Sgoods by accessing agent server 604 and downloading to purchaser computer 606 any relevant details pertaining to those goods. These details include the characteristics of the goods, their price, and conditions of sale. One of these conditions is that any purchaser must pay, upon Smaking a purchase of any of the vendor's goods, the sale price to the vendor (possibly via the agent) and a 00 10 commission to the agent.

C1 Figure 7 is a schematic view of agent server 604 of system 600. Agent server 604 includes a processor 702, memory 704, a cryptographic unit 706 (configured to encrypt and decrypt communications with agent server 604), a purchaser contract module 708, a transaction module 710 and I/O 712.

Memory 704 includes goods database 714 and conditions of sale database 716. Goods database 714 includes details of the various vendor's goods available for purchase, and conditions of sale database 716 includes details of what constitute, in effect, a sale contract (between the vendor and purchaser, comparable to sale contract 302 of figure 3) and purchaser contract (between the agent and purchaser, comparable to purchaser contract 202 of figure 2A).

In use, therefore, a purchaser uses purchaser computer 606 to connect to agent computer 604, and inspects the vendor's goods as detailed in goods database 714. The purchaser then interacts with transaction module 710 to indicate that he or she wishes to make a purchase of some of the vendor's goods. Transaction module 710 responds by extracting from conditions of sale database 716 the conditions of sale that pertain to the desired goods, and displays those conditions of sale on purchaser computer 606 to the purchaser. Transaction module 710 requests that the purchaser enter his or her personal details, the 24/01 2008 15:21 FAX 61 3 92438333 GRFIHAC PUSALA [oi GRIFFITH HACK IPAUSTRAMA Q016 00 12 c-I desired goods (selected from a menu derived from the contents of goods database 714) and confirmation indicated by selecting the appropriate check box that the purchaser accepts the conditions of sale. If that confirmation is not provided, the process is terminated.

Upon receiving that confirmation, however, transaction module 710 stores details of the intended transaction, including the acceptance of the conditions of sale and the identity of the purchaser, in purchaser contract module 0010 708; these details constitute both the sale contract o (between the vendor and purchaser) and purchaser contract 0 (between the agent and the purchaser).

Transaction module 710 then specifies the total price (which includes a first component as payment for the goods, payable directly or indirectly to the vendor, and a second component as commission payable to the agent), and requests that the purchaser enter payment details in the form of credit or debit card details. Upon receipt of those details, agent server 604 contacts purchaser bank server 6l0c and ascertains whether the required funds are available. if not, the transaction is ter-minated by transaction module 710; if agent server 604 receives confirmation from purchaser bank server 610c that the funds are available, transaction module 710 communicates with agent and purchaser bank servers 610b, 610c and initiates the transfer of the funds from purchaser bank server 610c, the first component to vendor bank server 610a and the second component to agent bank senoer When transaction module 710 receives conf:.;.rmnation from vendor and agent bank servers 610a, 6l0b that the payment has been successful, transaction module tK O confirms to purchaser computer 606 that this is so and the purchase is complete.

Agent server 604 then sends a message to vendor server 602 comprising details of the transaction, including the goods COMS ID No: ARCS-176663 Received by IP Australia: Time 16:24 Date 2008-01-24 24/01 2008 15:22 FAX 61 3 92438333 GRIFFITH HACK 4 IPAUSTRALA 017 00 -13 Ssold and the payment forwarded to vendor bank server 610a.

Modifications within the scope of the invention may be readily effected by those skilled in the art. It is to be understood, therefore, that this invention is not limited to the particular embodiments described by way of example hereinabove.

SIn the claims that follow and in the preceding description of the invention, except where the context requires 0 otherwise owing to express language or necessary 0 implication, the word "comprise" or variations such as "comprises" or "comprising" is used in an inclusive sense, that is, to specify the presence of the stated features but not to preclude the presence or addition of further features in various embodiments of the invention.

Further, any reference herein to prior art is not intended to imply that such prior art forms or formed a part of the common general knowledge in Australia or any other country.

COMS ID No: ARCS-176663 Received by IP Australia: Time 16:24 Date 2008-01-24

Claims (11)

1. A transaction system, comprising: an agent computing device of an agent of a vendor, said agent governed by a first agreement between said agent and vendor whereby said agent agrees to act for said vendor in attempting to find at least one purchaser of property, goods or services of said vendor for no commission payable by said vendor to said agent; 1 0 wherein said agent computing device is configured 00 to be controllable by a purchaser computing device adapted CI to electronically communicate with said agent computing device to sell said property, goods or services to said purchaser, including to receive a request to purchase said property, goods or services from said purchaser computing device, to provide access to conditions of sale pertaining to said property, goods or services to said purchaser, to communicate data to said purchaser computing device to enable a user operable control to be displayed on said purchaser computing device, said control operable by said user to indicate acceptance of said conditions of sale, to receive acceptance data from said purchaser computing device indicative of said acceptance, and to respond to receipt of at least said acceptance data by arranging a first transfer of a sale price from said purchaser to said vendor and arranging a second transfer of a commission for selling said property, goods or services from said purchaser to said agent.

2. A system as claimed in claim 1, wherein said agent computing device is configured to notify a vendor computing device of any sales of said property, goods or services.

3. A system as claimed in claim 2, including said vendor computing device. 15 00 O

4. A system as claimed in any one of the preceding claims, including said purchaser computing device.

A system as claimed in any one of the preceding claims, wherein said purchaser computing device is one of a plurality of like purchaser computing devices of respective purchasers.

6. A system as claimed in any one of the preceding 10 claims, wherein said agent computing device is configured 00 to provide access to said conditions of sale by forwarding CI said conditions of sale to said purchaser computing device for display to said user.

7. A system as claimed in any one of the preceding claims, comprising a conditions of sale database storing said conditions of sale and accessible by said agent computing device.

8. A system as claimed in claim 7, wherein said agent computing device includes said conditions of sale database.

9. A system as claimed in any one of the preceding claims, wherein said agent computing device includes a transaction module for accessing said conditions of sale.

A transaction system, comprising: a purchaser computing device of a purchaser operable to control an agent computing device of an agent of a vendor, said agent governed by a first agreement between said agent and vendor whereby said agent agrees to act for said vendor in attempting to find at least one purchaser of property, goods or services of said vendor for no commission payable by said vendor to said agent; wherein said purchaser computing device is controllable to communicate a request to purchase said 16 00 property, goods or services to said agent computing device, to access conditions of sale pertaining to said Sproperty, goods or services, to display a user operable control operable by said user to indicate acceptance of said conditions of sale, and to communicate acceptance data from said purchaser computing device indicative of said acceptance; and Swherein at least said acceptance data is operable to control said agent computing device to arrange a first 00 10 transfer of a sale price from said purchaser to said Svendor and arrange a second transfer of a commission for C1 selling said property, goods or services from said purchaser to said agent.

11. A transaction system substantially as hereinbefore described with reference to any one of the figures of the accompanying drawing.