Victorian Consolidated Legislation

Estate Agents Act 1980 - SECT 49A

Offence not to give certain information about commission

49A. Offence not to give certain information about commission



(1) An estate agent must not obtain, or seek to obtain, any payment from a
person in respect of work done by, or on behalf of, the agent or in respect of
any outgoings incurred by the agent unless-

   (a)  the agent holds a written engagement or appointment that is signed by
        the person (or the person's representative); and

   (b)  before obtaining the person's signature to the engagement or
        appointment, the agent (or an agents' representative employed by the
        agent) informed the person (or the person's agent or representative)
        that the commission to be paid to the agent under the engagement or
        appointment and any money to be paid by the person in respect of
        outgoings were subject to negotiation; and

   (c)  the engagement or appointment contains-

   (i)  details of the commission and outgoings that have been agreed; and

   (ii) if a fee is to be calculated on a percentage basis, a statement of
        that fee expressed as both a percentage and as the dollar amount that
        would be payable on the reserve price or any other relevant amount set
        out in the engagement or appointment; and

   (iii) a rebate statement that complies with subsection (4); and

   (iv) a statement in a form approved by the Director as to where a complaint
        concerning any commission or outgoings in the engagement or
        appointment can be made; and

   (v)  anything else required by the Director; and

   (d)  the agent (or an agent's representative employed by the agent) gave
        the person a copy of the signed engagement or appointment.

Penalty: 100 penalty units.

(2) An estate agent or agent's representative must not destroy any document
required by this section and must retain any such document for the prescribed
period.

Penalty: 100 penalty units.

(3) If an estate agent takes any money in respect of commission or outgoings
from any money held in trust by the agent on behalf of a person, the agent
must give the person written notice of the amount taken, and why it was taken,
within 7 days of taking it.

Penalty: 100 penalty units.

(4) A rebate statement complies with this subsection if it is in a form
approved by the Director and it contains-

   (a)  a statement of whether or not the agent will be, or is likely to be,
        entitled to any rebate in respect of-

   (i)  any outgoings; or

   (ii) any prepayments made by the person engaging or appointing the agent
        (the client) in respect of any intended expenditure by the agent on
        the client's behalf; or

   (iii) any payments made by the client to another person in respect of the
        work; and

   (b)  if such an entitlement will, or is likely to, occur, details of-

   (i)  the goods or services to which the rebate relates; and

   (ii) the name of the person providing the rebate; and

   (iii) the amount of the rebate that will be attributable to the engagement
        or appointment, or if that amount is not known at the time the
        statement is made, an estimate (in dollars) of the amount; and

   (c)  a statement that the agent is not entitled to retain any rebate and
        must not charge the client an amount for any expenses that is more
        than the cost of those expenses; and

   (d)  any other statements or details required by the regulations.

(5) Section 48C also applies for the purposes of subsection (4)(b)(iii).