New South Wales Consolidated Regulations

PROPERTY AND STOCK AGENTS REGULATION 2014 - SCHEDULE 7

SCHEDULE 7 – Terms applying to all agency agreements

(Clause 8)

1 Identification of property, business or professional practice

The agreement must specify the address of the property, business or professional practice to which the agreement applies or must contain such other description of the property, business or professional practice as clearly identifies it. This clause does not apply to an agency agreement to act for the buyer of land.

2 Names of parties to agreement

The agreement must specify the names of each of the parties to the agreement (including the licensee).

3 Information identifying parties

The agreement must specify the address of the person on behalf of whom the agent is acting, the licensee's licence number and any business name under which the licensee conducts business.

4 Authority of the person on behalf of whom the agent will act to enter into agreement

The agreement must contain a statement to the effect that the person on behalf of whom the agent is acting warrants that the person has authority to enter into the agreement.

5 Authorisation for licensee to act on behalf of person

The agreement must contain a term containing particulars of the extent of the authority of the licensee to act as agent on behalf of the person on behalf of whom the agent is acting in providing services under the agreement.

6 Period of duration of the agreement

The agreement must contain a term indicating the period for which the agreement remains in force or indicating that the agreement remains in force until terminated.

7 Termination of the agreement

If the agreement provides for its termination by a party to the agreement, the agreement must indicate how and when it can be terminated.

8 Reimbursement of licensee

(1) If the licensee is to be entitled to any sum or reimbursement for expenses or charges incurred by the licensee in connection with services provided under the agency agreement, the agreement must include a term that--

(a) states that the licensee is so entitled, and

(b) describes those services, and

(c) specifies the amount to which the licensee is so entitled and when it is payable, and

(d) states that those services and amounts cannot be varied except with the agreement in writing of the person on behalf of whom the agent is acting.

(2) Subclause (1) (d) does not apply to an agency agreement for the exercise of the functions of a strata managing agent.

9 Remuneration

(1) The agreement must include a term specifying--

(a) the circumstances in which the licensee is entitled to remuneration (by way of commission or otherwise) for services performed under the agreement, and

(b) the amount of the remuneration or the way in which it is to be calculated, and

(c) when the remuneration is payable.

(2) If the agreement relates to the sale or purchase of residential property and provides for payment of commission to the agent calculated as a percentage of the sale or purchase price, the term must also specify the amount of the remuneration to which the licensee will be entitled calculated on the basis of a specified estimated sale or purchase price for the property.