In NSW, an agent does not give the vendor a copy of the signed agency agreement within 48 hours of the vendor signing it. What is the main consequence under the Property and Stock Agents Act 2002?
Correct Answer
B) The agent may not be entitled to commission or expenses under the agreement
Under section 55 of the Property and Stock Agents Act 2002 (NSW), an agent is not entitled to commission or expenses unless a copy of the signed agency agreement is given to the client within 48 hours. The agent can apply to a court or tribunal for relief under section 55A, so the loss is not always final. The Act does not give the vendor a separate right to terminate because the copy was late.
Why This Is the Correct Answer
Section 55 makes the agent's right to commission and expenses depend on serving the client with a signed copy of the agreement within 48 hours. Missing that step puts payment at risk, although the agent may seek relief from a court or tribunal under section 55A.
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