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SETTLEMENT AGENTS CODE OF CONDUCT 2016 - REG 23

SETTLEMENT AGENTS CODE OF CONDUCT 2016 - REG 23

23 .         Costs disclosure

        (1)         Before being appointed to act as a settlement agent in relation to a transaction by a client as required under section 43 of the Act, a licensee must give a costs disclosure in writing to the client.

        (2)         The costs disclosure must disclose the amount ( service amount ) that the client will be charged by the licensee to provide the services that the licensee has agreed to provide to the client in relation to the transaction.

        (3)         Without limiting subrule (2), the service amount must include all amounts —

            (a)         that are listed, or that reflect amounts that are listed, in subrule (4); and

            (b)         that the client will be charged by the licensee.

        (4)         The amounts are as follows —

            (a)         professional fees;

            (b)         commissions;

            (c)         general office disbursements;

            (d)         search or enquiry fees or charges;

            (e)         electronic conveyancing service fees or charges;

            (f)         any other types of fees or charges;

            (g)         taxes, duties or levies.

        (5)         However, the service amount must not include any amount that is, or reflects, an amount that is imposed on the client (as opposed to the licensee) under a written law or otherwise by a third party, for example —

            (a)         duty imposed on the client under the Duties Act 2008 ;

            (b)         commissions imposed on the client by —

                  (i)         an agent as defined in the Real Estate and Business Agents Act 1978 section 4(1); or

                  (ii)         a developer as defined in the Real Estate and Business Agents Act 1978 section 4(1); or

                  (iii)         any other third party.

        (6)         An amount that is imposed on the client as referred to in subrule (5) may be set out, or estimated, in the costs disclosure separately from the service amount.

        [Rule 23 amended: SL 2020/221 r. 4.]