New South Wales Consolidated Regulations New South Wales Consolidated Regulations(Clause 7)
Note : Clause 7 provides that a reference in this Schedule to an agent includes a reference to a registered person to whom the Schedule applies.
This Part applies to real estate agents and assistant real estate agents who perform real estate sales or leasing functions in relation to the sale or purchase of land and business agent functions.
An agent must not act on behalf of a vendor of a property or business unless the agent has conducted a preliminary physical inspection of the property or business.
On completion of the inspection required by clause 1, an agent must prepare and give to the vendor a sales inspection report for the property or business. The report must specify the following and be signed by the agent--
(a) the name and address of the vendor,
(b) the date of preparation of the report,
(c) the agent's name, business address and telephone number,
(d) a description of the property or business, including the address of the property or business and such other details as may be necessary to enable the property or business to be readily identified, including the business name and its Australian Business Number where relevant,
(e) a description of any fittings and fixtures that are to be included in the sale of the property, and, for business sales, a description of inclusions to be included in the sale such as goodwill, plant, fittings, stock in inventory and work in progress, together with details of any encumbrances affecting those inclusions,
(f) any terms and conditions of sale known to the agent (for example, whether or not vacant possession is to be given),
(g) the agent's recommendation as to the most suitable method of sale of the property or business,
(h) the agent's estimate of the selling price (or price range) for the property or business,
(i) details of any covenants, easements, defects, local government notices or orders affecting the property or business that are known to the agent,
(j) details of any special instructions about the marketing and showing of the property or business,
(k) the name, business address, telephone number and address for service of documents of the solicitor of the vendor.
(1) The agent must, unless the vendor has instructed to the contrary in writing, inform the vendor of all offers of purchase as soon as practicable after receiving each offer up until exchange of contracts has taken place.
(2) If the agent is not going to inform the vendor of an offer, the agent must inform the person who made the offer that the offer will not be submitted to the vendor.
(3) The agent may inform the vendor of an offer orally or in writing and must identify the party by whom the offer is made. If the vendor is informed orally, the agent must confirm the information in writing.
(4) This clause does not apply to bids made in the course of an auction.
(1) Before or at the time of entering into an agency agreement under which an agent will act for the vendor on the sale of the business, the agent must prepare for inclusion in the agency agreement written confirmation of any specific instructions given to the agent by the vendor before the agreement is entered into about any of the following--(a) inclusions to be included in the sale such as goodwill, plant, fittings, stock in inventory and work in progress, together with details of any encumbrances affecting those inclusions,(b) arrangements for the transfer to the purchaser of any liability for the leasing or hire purchase of any of those inclusions,(c) the marketing of the business,(d) the entitlement of prospective purchasers to inspect the premises of the business and the circumstances under which such an inspection can be made,(e) the entitlement of prospective purchasers to inspect records, books of account and other documents concerning the business and the circumstances under which such an inspection can be made.
(2) The written confirmation may be prepared and be included as part of the agency agreement.
When the bidding at an auction does not reach the minimum or reserve price fixed for the property or business by the vendor, the licensee conducting the auction must not set aside that price without the express permission of the vendor or a person given that permission by the vendor.
(1) When an agent issues a receipt for an expression of interest deposit made prior to exchange of contracts, the agent must inform the person who paid the deposit that the vendor has no obligation to sell the property or business or the purchaser to buy the property or business and the deposit is refundable if a contract for the sale of the property or business is not entered into. The information must be provided in writing and may be provided on the receipt.
(2) The agent must promptly inform the vendor when an expression of interest deposit has been paid.
(3) The agent must promptly inform the person who paid the deposit when the agent becomes aware of any subsequent offer to purchase the property or business received from any other person. The agent must also advise the person who paid the deposit that they have the right to make further offers up until exchange of contracts has taken place.
If an agent accepts an appointment to sell residential property or a business that is tenanted, the agent must immediately give written notice of the appointment to any agent responsible for managing the property or business.
An agent must not demand or accept a fee or other valuable consideration for referring the person on behalf of whom the agent is acting on the sale to a buyer's agent.
An agent must not bid at an auction on behalf of a person who is giving instructions to the agent by telephone unless--
(a) the written authority on the basis of which the agent bids on behalf of the person contains an acknowledgment that the person has been given a copy of the conditions that are applicable in respect of the sale, and
(b) the agent is satisfied that the person has been given a copy of those conditions.
If an agent participates in the exchange or making of a contract for the sale of residential property or a business, the agent must serve a copy of the contract within 2 business days on--
(a) each party to the contract, unless paragraph (b) requires the agent to serve a copy of the contract on a solicitor or conveyancer acting for the party, or
(b) the solicitor or conveyancer acting for a party to the contract if the party has notified the agent, or it is apparent from the contract, that a solicitor or conveyancer is acting for the party.
At the time of entering into an agency agreement with a person on behalf of whom an agent is to act as buyer's agent, the agent must prepare and give the person a statement of property details that is signed by the agent and specifies the following--
(a) details known to the agent of the type of property to be purchased,
(b) details of any special instructions about the property to be purchased (for example, an instruction that vacant possession is required in the case of a rented property).
Note : These details can be changed by agreement between the parties or as provided by the agency agreement.
(1) An agent acting as a buyer's agent for a person must keep the person informed of each stage of the negotiation of a purchase price as instructed by the person.
(2) This clause does not apply to bids made in the course of an auction.
An agent acting as a buyer's agent must use the agent's best efforts to obtain the best possible purchase price, without breaching standards of ethical conduct or engaging in conduct that is contrary to good agency practice.
(1) In negotiations for the purchase of a property, an agent acting as a buyer's agent for a person (the
"client" ) must not exceed the maximum price fixed by the client without the express written authorisation of the client or a person authorised by the client.
(2) When the bidding at an auction exceeds the maximum price fixed by the client, the agent must not continue bidding without the express authorisation of the client or a person authorised by the client.
(1) An agent acting as a buyer's agent for a person must inform the person of the following if the person pays an expression of interest deposit in respect of the proposed purchase of a property prior to the exchange of contracts--(a) that the vendor has no obligation to sell the property,(b) that the person has no obligation to buy the property,(c) that the deposit is refundable if a contract for the sale of the property is not entered into.
(2) The information must be provided in writing and may be provided on the receipt issued by the vendor or the vendor's agent.
(3) An agent acting as a buyer's agent for a person must promptly inform the person if the agent becomes aware of any subsequent offers to purchase the property on which the expression of interest deposit has been paid.
An agent acting as a buyer's agent for a person must not demand or accept a fee or other valuable consideration for referring the person to a selling agent.
Note : These rules apply to real estate agents, registered persons they employ and on-site residential property managers.
This Part applies to real estate agents and assistant real estate agents who perform real estate sale or leasing functions in relation to the lease of land or on-site residential property manager functions.
An agent must, as soon as practicable after entering into an agency agreement in respect of the management of property, prepare and give to the owner of the property an inspection report for the property. The inspection report must include the following and be signed by the agent--
(a) the name and address of the owner,
(b) the address of the property,
(c) the date of preparation of the report,
(d) the agent's name, licence number and business address,
(e) a description of the exterior and interior condition of the property, including fittings, fixtures, improvements and anything provided with the property,
(f) details of any work still to be completed by the owner on the property.
(1) An agent must accompany a prospective tenant on an inspection of the property.
(2) An agent must not give the keys to a property to a prospective tenant, even for a short time.
(3) Subclauses (1) and (2) do not apply if the owner, and, if the property is currently let, the tenant, have authorised otherwise in writing.
(1) An agent must not use the services of a collection agent to collect rent on behalf of the owner unless the arrangements for the collection and holding of that rent pending its payment to the agent or the owner comply with such guidelines as the Secretary may issue from time to time under this clause (including guidelines requiring rent collected by a collection agent to be paid into and retained in a trust account).
(2) In this clause--
"collection agent" means a person who collects rent as agent for and on behalf of a licensee.
(1) An agent managing a rental property must promptly respond to and, subject to the instructions of the owner, attend to all requests by a tenant, for maintenance of, or repairs to, the property.
(2) If the owner has instructed that a repair not be carried out, the agent must inform the owner if the owner's failure to carry out the repair would constitute a breach of any tenancy agreement in force in relation to the property.
An agent managing a rental property must immediately notify the owner in writing if the agent becomes aware of a tenant's breach of the tenancy agreement.
(1) This clause applies if an agent managing a rental property is aware that--(a) the property is listed for sale, or(b) a real estate agent has been appointed to act on the sale of the property.
(2) The agent must immediately give the tenant written notice of--(a) the intended sale of the property, or(b) the appointment of the real estate agent for the sale of the property (together with the name and contact details of the agent).
An agent must take all reasonable steps to ensure that any final inspection of the property, on vacation of the property, is conducted in the presence of the tenant (unless otherwise authorised by the tenant).
Note : "Reasonable steps" by an agent would comprise contacting the tenant to discuss suitable times for the inspection, arranging to meet at a particular time and place and proceeding to meet the tenant at the arranged time and place.
An agent must not solicit or obtain the signature of a tenant to any document relating to the refund of a rental bond prior to the termination of the tenancy, unless the document directs the bond to be repaid in full to the tenant or transferred to another tenancy in accordance with the tenant's directions.
Before or at the time of entering into an agency agreement under which an agent will provide property management services in respect of the leasing of residential property or rural land, the agent must prepare for inclusion in the agency agreement written confirmation of the extent of the agent's authority to undertake the following duties in connection with the management of the property or rural land and any limitations on the agent's authority to undertake those duties--
(a) obtaining references from prospective tenants, arranging inspections of the property by prospective tenants and choosing a tenant,
(b) entering into and signing a residential tenancy agreement (specifying the term for which the property may be let),
(c) undertaking inspections of the property,
(d) effecting repairs to and maintaining the property or engaging tradespersons to do so and detailing limitations on expenditure that may be incurred by the agent without obtaining the approval of the owner,
(e) paying disbursements and expenses incurred in connection with the agent's management of the property,
(f) collecting rent,
(g) receiving, claiming and disbursing rental bond money,
(h) serving notices for breach of the residential tenancy agreement or to terminate the residential tenancy agreement,
(i) undertaking the necessary steps to obtain vacant possession and recover any money owing to the owner in relation to the tenancy of the property,
(j) representing the owner in any tribunal or court proceedings in respect of the tenancy of the property,
(k) paying accounts for amounts owing in relation to the property (for example, water rates and charges, council rates, insurance premiums, maintenance expenses and owners corporation levies),
(l) advertising the property for letting or re-letting,
(m) reviewing the rent at the end of a tenancy.
Before or at the time of entering into an agency agreement under which an agent will act for the owner of a residential property or rural land in relation to the entering into of a lease of the residential property or rural land, the agent must prepare for inclusion in the agency agreement written confirmation of the extent of the agent's authority to undertake the following duties in connection with the entering into of the lease of the property or rural land and any limitations on the agent's authority to undertake those duties--
(a) obtaining references from prospective tenants, arranging inspections of the property by prospective tenants and choosing a tenant,
(b) entering into and signing a residential tenancy agreement,
(c) undertaking an initial inspection of the property,
(d) collecting the initial rent payment,
(e) receiving and disbursing rental bond money,
(f) advertising the property for letting.