New South Wales Consolidated Regulations

PROPERTY AND STOCK AGENTS REGULATION 2022 - SCHEDULE 5

SCHEDULE 5 – Terms applying to all agency agreements

section 9

1 Identification of property, business or professional practice

(1) The agency agreement must--

(a) specify the address of the property, business or professional practice to which the agency agreement applies, or

(b) contain another description of the property, business or professional practice to clearly identify the property, business or professional practice.

(2) This section does not apply to an agency agreement to act as a buyer's agent.

2 Names of parties to agreement

The agency agreement must specify the names of each of the parties to the agency agreement, including the licensee.

3 Information identifying parties

The agency agreement must specify--

(a) the address of the person on behalf of whom the licensee is acting, and

(b) the licensee's licence number, and

(c) the business name, if any, under which the licensee conducts business.

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

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

5 Authorisation for licensee to act on behalf of person

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

6 Duration of agreement

The agency agreement must contain a term indicating--

(a) the period for which the agency agreement remains in force, or

(b) that the agency agreement remains in force until terminated.

7 Termination of agreement

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

8 Reimbursement of licensee

(1) If the licensee is to be entitled to a 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 the licensee has this entitlement, and

(b) describes the services to which the entitlement relates, and

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

(d) states the services and amounts may not be varied except with the written agreement of the person on behalf of whom the licensee is acting.

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

9 Remuneration

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

(a) the circumstances in which the licensee is entitled to remuneration, by commission or otherwise, for services performed under the agency 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 agency agreement relates to the sale or purchase of residential property and provides for payment of commission to the licensee calculated as a percentage of the sale or purchase price, the term must also specify the amount of the remuneration to which the licensee may be entitled calculated on the basis of a specified estimated sale or purchase price for the property.