Rex Afrasiabi is the go-to lawyer for real estate agencies across Australia

Rex Afrasiabi, an esteemed commercial and litigation lawyer, has established himself as the preferred legal expert for top real estate agencies throughout Australia. His exceptional legal skills and extensive knowledge have earned him the well-deserved reputation as the go-to “Mr. Fix It” in the industry.  But, Afrasiabi is not just a lawyer to real estate agents, he is also a judge for the national industry awards, a keynote speaker and expert panelist for real estate agent specific events, and a co-host on a business advisory show for real estate professionals. 

Forbes Australia sits down with Rex Afrasiabi for this interview and insight into the real estate industry.

As the founder and principal lawyer of M A Legal, Afrasiabi has a network of high-profile industry contacts and is involved in most major transactions that occur in the real estate agency sector in Victoria, whether it be acquisitions, mergers or disputes.

With a focus on efficiency and avoiding lengthy commercial negotiations or disputes, Afrasiabi said, “the real estate industry is small, and if you are selling, buying or merging a real estate office, you want the matter to happen expeditiously to avoid, other estate agents from targeting your listings, properties under management or employees. Similarly, with disputes, you want to have the dispute resolved swiftly, and where possible avoid court, especially in real estate – where public perception and sales are paramount.”

Approximately, seventy percent of M A Legal’s work is for real estate agents, including working with the major franchise networks across Australia. Afrasiabi is on a first name basis with the CEOs of these franchise groups, and says it’s these relationships that can be very helpful in supporting his clients to navigate potential legal issues.

Afrasiabi told Forbes Australia, “A phone call to the right person can get something done quickly as opposed to seeing an issue drag out in court. And it is always in all parties, including the franchisor’s, best interest for an issue to be resolved privately with certainty in opposition to lengthy court battles and potential media coverage.”

M A Legal is also a key player in supporting real estate agencies in all aspects of their business, from appropriate corporate structures, franchising, partnerships, employee disputes, debt recovery, regulatory compliance and the list goes on.  

However, with the recent downturn in the economy, including a more than 20 per cent reduction in the number of real estate listings across Australia, Afrasiabi has seen first-hand how this is impacting the income of real estate agencies across Australia.

Afrasiabi says bigger players in the industry have been able to maintain their businesses based on the recurring income generated from their property management arms, but it’s the smaller players who are beginning to experience a downturn.

“I can see it first hand – it’s the smaller agencies who are selling their property management arms just to keep the doors open,” he said. “The bigger guys are getting bigger in the industry, through acquisition of rent rolls.”

Recently, Afrasiabi has seen and been involved in countless agencies acquiring property management rent rolls to add to their agencies.  

“The acquisition of a rent roll is a quick way for an agency to grow, with recurring revenue in management fees, an increase in sales by virtue of a good percentage of properties under management selling and the ability to leverage the acquisition with bank funding,” Afrasiabi told Forbes Australia.

Afrasiabi’s network also expands to the key rent roll brokers across Australia who refer their clients to his firm, which can produce the Sale of Rent Roll Agreements in 24-48 hours for a fixed fee, which resonates with his firm’s focus on efficiency in transactions.

When we asked Afrasiabi if he thought this downturn in the economy was the biggest risk to real estate agencies, he disagreed. 

“I think the biggest risk to any agency is from within, disgruntled employees stealing the database or a dispute between the partners or directors of the business” he said.

Afrasiabi believes that a large number of internal agreements within the real estate industry lack specific industry specific provisions to protect the agency.  By way of example “most employment agreements and even shareholder agreements lack an appropriate agreed damages provision that actually values the business based on a multiple of the recurring revenue of the property management arm of the business.” Something he urges all real estate agents to visit in line with recent court rulings in this sector.  

As an entrepreneur with multiple ventures to his name, Afrasiabi has also seen his newest venture, another law firm, Bond Conveyancing Property Lawyers, expand rapidly in a matter of months.

Bond Conveyancing Property Lawyers is currently slated as one of the fastest growing law firms in the country, leading with a technology enabled, people first approach to property transactions and conveyancing.  A pain point he identified for real estate agents transacting on a property sale but often being left in the dark by lawyers or experiencing lengthy delays in the documentation.

Afrasiabi teamed up with a client who was also an ex CEO as well as an ex COO of two different public ASX listed entities to establish this new law firm that offers a secure App and online portal for clients, as well as real estate agents, to have 24-hour access to their matter, live updates and the ability to access documents and progress their matter.  The firm also provides a number of service level guarantees that are unique to the industry, such as returned phone calls within 2 hours, and 48-hour new contract preparation or purchaser contract reviews.

In a mere 8 months, this latest law firm has gone national as it looks to change the way conveyancing transactions are delivered in Australia.

Throughout his various ventures and experiences, Afrasiabi has come to understand that intelligence and power must be combined with a diligent work ethic and a consistent pursuit for knowledge. However, he also recognizes the significance of not exhausting himself. He strikes a balance between pushing himself and maintaining boundaries, with a steadfast determination encapsulated by the words “will not be outworked” proudly tattooed on his ankle, that he displays with a sock less finely tailored suit, conveying the same individuality and creativity which he brings to his professional pursuits.

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