New South Wales Consolidated Regulations

PROPERTY, STOCK AND BUSINESS AGENTS REGULATION 2003 - SCHEDULE 5

SCHEDULE 5 – Rules specific to buyers agents

(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.

1 Statement of property details

At the time of entering into an agency agreement with a principal to act as buyer’s agent for the principal, an agent must prepare and give the principal 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.

2 Principal to be informed of negotiations

The agent must keep the principal informed of each stage of the negotiation of a purchase price, as instructed by the principal. This clause does not apply to bids made in the course of an auction.

3 Licensee to obtain best possible purchase price

An agent is to use his or her 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.

4 Licensee not to exceed agreed purchase price in negotiations or at auction

(1) In negotiations for the purchase of a property, the agent must not exceed the maximum or agreed price fixed by the principal without the express written authorisation of the principal or a person authorised by the principal.

(2) When the bidding at an auction exceeds the maximum or agreed price fixed by the principal, the agent must not continue bidding without the express authorisation of the principal or a person authorised by the principal.

5 Information to be given when expression of interest deposit paid

(1) When the principal pays an expression of interest deposit in respect of the proposed purchase of a property prior to exchange of contracts, the agent must inform the principal that the vendor 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 issued by the vendor or their agent.

(2) An agent must promptly inform the principal when the agent becomes aware of any subsequent offers to purchase the property.

6 Licensee must not accept payment for a referral

An agent must not demand or accept a fee or other valuable consideration for referring the principal to a selling agent.