New South Wales Repealed Regulations

This legislation has been repealed.

PROPERTY, STOCK AND BUSINESS AGENTS (GENERAL) REGULATION 1993 - REG 9

9 Agency agreements--prescribed terms

(1) For the purposes of section 42AA (1) (d) of the Act, the following terms are prescribed for agreements specified in subclauses (2)-(6), as well as the relevant additional terms set out in those subclauses:

(a) a term specifying the period of the duration of the agreement or, if there is no such period, specifying the manner in which the agreement may be terminated by a party to the agreement,

(b) a term specifying:

• the circumstances in which the licensee is entitled to remuneration for services performed under the agreement, and

• the amount of the remuneration or the way in which it is to be calculated, and

• when the remuneration is due and payable,

(c) if the agreement is for a service other than:

• a service relating to arbitration, or

• a service relating to commercial land, being land used or intended to be used solely or principally for commercial, business or industrial purposes, but not including land used or intended to be used solely or principally for agricultural or pastoral purposes, or

• a service relating to the sale of residential property under an agreement entered into before 1 March 1994,

the following term:

THIS FEE HAS BEEN NEGOTIATED BETWEEN THE PARTIES TO THE AGREEMENT

This term must appear in the agreement immediately after the term fixing the remuneration of the agent,

(d) if the licensee is to be entitled to any sum or reimbursement for expenses or charges incurred by the licensee, a term specifying that the licensee is so entitled, the circumstances in which the licensee is so entitled and when the sum or reimbursement is due and payable,

(e) a term containing a warranty by the principal that the principal has authority to enter into the agreement with the licensee.

(2) The additional terms for an agreement in respect of the sale of land are:

(a) a term specifying that a prospective purchaser is entitled to inspect the land and the circumstances in which such an inspection is to be made, unless the principal has instructed otherwise, and

(b) a term specifying whether or not the licensee is authorised to sell the land on behalf of the principal and, if so authorised, the limitations on that authority (including any minimum or reserve price for the land at which the licensee is authorised to sell), and

(c) if the agreement is made after 1 March 1994 and the sale is to be by auction (but the minimum or reserve price is not so specified), a term specifying that the principal is to advise the licensee in writing of that price before the start of bidding for the land at the auction.

(3) In addition to the other terms prescribed by subclauses (1) and (2), the prescribed terms in relation to an agreement in respect of the sale of residential property are:

(a) a term specifying that the licensee cannot act on behalf of the principal in respect of the sale of residential property unless the licensee has a copy of the proposed contract of sale in respect of the property available for inspection, and

(b) a term specifying both the way in which the licensee's remuneration is to be calculated (together with the dollar amount of that remuneration in relation to the licensee's estimate of the selling price of the land) and an estimate of the amount of expenses or charges the licensee expects to incur and for which he or she is entitled under the agreement to be reimbursed.

(4) The additional terms for an agreement in respect of the leasing of an interest in land are:

(a) a term specifying that a prospective lessee of the interest in land is entitled to inspect the land and the circumstances in which such an inspection is to be made, unless the principal has instructed otherwise, and

(b) a term specifying whether or not the licensee is authorised to lease the interest in the land on behalf of the principal and, if so authorised, the limitations on that authority, and

(c) if the licensee is to be required to seek references from a prospective lessee of the interest, a term specifying that the licensee is so required, and

(d) if the licensee is to be required to receive or dispose of rental bonds in relation to the leasing, a term specifying that the licensee is so required and the procedure to be adopted for the receipt or disposal.

(5) The additional terms for an agreement in respect of the management of property are:

(a) a term containing particulars of the extent of the authority of the licensee to act as agent on behalf of the principal in the management of the property, including whether or not there is any limitation on the authority of the licensee:

• to enter and sign a lease agreement in respect of the property on behalf of the principal, or

• to effect repairs to, or maintain, the property or engage the services of a person appropriately qualified in a trade for the purpose of doing so, or

• to pay disbursements or expenses in connection with services performed by the agent on behalf of the principal, and

(b) if a prospective tenant is to be entitled to inspect the property, a term specifying that a prospective tenant is so entitled and the circumstances in which such an inspection is to be made, and

(c) if the letting and re-letting of the property is to be advertised or otherwise promoted, a term specifying that the letting and re-letting of the property is to be advertised or otherwise promoted and the manner in which it is to be advertised or otherwise promoted, and

(d) if the licensee is to be required to seek references from a prospective tenant of the property, a term specifying that the licensee is so required, and

(e) if the licensee is to be required to receive or dispose of rental bonds in relation to the leasing of the property, a term specifying that the licensee is so required and the procedure to be adopted for the receipt or disposal, and

(f) a term specifying the manner in which and the frequency at which the licensee is required to account to the principal in relation to money received on behalf of the principal, and

(g) if the licensee has undertaken to perform any other services in connection with the management of the property, a term specifying that the licensee has so undertaken and providing particulars of those services.

(6) The additional term for an agreement in respect of the sale of a business is a term specifying that a prospective purchaser of the business is entitled to inspect the business premises (if any) and the records, documents and books of account relating to the business and the circumstances in which such an inspection is to be made, unless the principal has instructed otherwise.