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.
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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.