New South Wales Consolidated Regulations New South Wales Consolidated Regulations(Clause 11)
Note: Clause 11 provides that a reference in this Schedule to an agent includes a reference to a registered person to whom the Schedule applies.
An agent must not act on behalf of a principal in respect of the sale of any property, including livestock included in the sale, unless the agent has conducted a preliminary physical inspection of the property. This clause does not apply to a sale solely of livestock.
On completion of the inspection required by clause 1, an agent must prepare and give to the principal a sales inspection report for the property. The report must specify the following and be signed by the agent:
(a) the principal’s name and address,
(b) the date of preparation of the report,
(c) the agent’s name, business address and telephone number,
(d) a description of the property, including the address of the property and such other details as may be necessary to enable the property to be readily identified, and the size of the property in hectares,
(e) a description of the services provided to the property (for example, power, phone, airstrip, closest schools, mail service, closest rail service),
(f) information about the type of country (topography, soils, timber, arable area, pasture development), water (irrigation, dams, rainfall) and production capacity,
(g) a description of any fittings and fixtures that are to be included in the sale of the property,
(h) a description of items included in the sale such as house, other accommodation, grain storage, woolshed, sheep/cattle yards or plant equipment,
(i) a description of other items to be included in the sale, such as livestock,
(j) any terms and conditions of sale known to the agent (for example, whether or not vacant possession is to be given),
(k) the agent’s recommendation as to the most suitable method of sale of the property,
(l) the agent’s estimate of the selling price (or price range) for the property,
(m) details of any covenants, easements, defects, local government notices or orders affecting the property that are known to the agent,
(n) details of any special instructions about the marketing and showing of the property,
(o) the name, business address, telephone number and address for service of documents of the principal’s solicitor.
(1) The agent must, unless the principal has instructed to the contrary in writing, inform the principal of all offers of purchase as soon as practicable after receiving the offer up until exchange of contracts has taken place.
(2) If the agent is not going to inform the principal of an offer, the agent must inform the person who made the offer that the offer will not be submitted to the principal.
(3) The agent may inform the principal of an offer orally or in writing and must identify the party by whom the offer is made. If the principal 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) 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 principal has no obligation to sell the property or the purchaser to buy the property and the deposit is refundable if a contract for the sale of the property 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 principal 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 offers to purchase the property 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.
An agent must not demand or accept a fee or other valuable consideration for referring the principal to a buyers 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 acknowledgement 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.
When the bidding at an auction does not reach the minimum or reserve price fixed for the property by the principal, the licensee conducting the auction must not set aside that price without the express permission of the principal or a person authorised to give that permission by the principal.
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 principal 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 principal,
(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 principal 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 principal, and, if the property is currently let, the tenant, have authorised otherwise in writing.
(1) A licensee must not use the services of a collection agent to collect rent on behalf of a principal unless the arrangements for the collection and holding of that rent pending its payment to the agent or the principal comply with such guidelines as the Director-General 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 principal’s instructions, attend to all requests by a tenant, for maintenance of, or repairs to, the property.
(2) If the principal has instructed that a repair not be carried out, the agent must inform the principal if the principal’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 principal 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) an 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 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 them at the arranged time and place.