Posted .

I am alerting anyone who is selling a house to read this article below from the NSW Department of Fair Trading about Real Estate Agents and Commissions and Cooling off statements.

 

It is making legal what some people have known for a while.

The two key points are:

* Ensure that you think about when commission is payable (even if you pull out) before you sign an Agency Agreement with the local real estate agent.

This can affect you even after you stop the agreement from the Agent.

* the Cooling off is to the vendor only – this helps to avoid some confusion about who and what times the cooling off period applies to.

 

Cheers,

James

 

 

Property Industry News

27 February 2015

Reminder: new commission warning needed from 1 March 2015

Following our December update, agents are reminded of the new requirement for agency agreements to include an official warning highlighting to consumers about commissions payable, even if they pull out of a sale. 

The mandatory warning must be included from 1 March 2015 inclusive. It should appear straight after the term about the commission payable in the agency agreement, and be at least as prominent as the term itself.

The mandatory warning is:

WARNING: The term immediately above provides that a commission is payable under this agreement even if the sale of the property is not completed.

The warning should appear in the agency agreements for:

  • the sale of residential property
  • the sale of rural land, and
  • the sale of business.

Drawing on consultation with industry, this requirement comes under the Property, Stock and Business Agents Amendment (Miscellaneous) Regulation 2014. It was published on the NSW Legislation website on 16 December 2014.


Minor change to cooling-off statements

The Amendment Regulation also replaced the term ‘principal’ with ‘vendor’ in the cooling-off period statement (in the agency agreements for the sale of residential property and for the sale of rural land). This minor change took effect on 16 December 2014. The statement should now read as follows:

COOLING-OFF PERIOD: You (the vendor) have a cooling-off period for this agreement.  If you do not wish to continue with this agreement you can cancel it until 5pm on the next business day or Saturday.

Also following industry consultation, this change was made to make it clearer that the statement is directed to the vendor. Please check that this update has been made.

 
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