Which document must be provided to a vendor before an agent can lawfully act on their behalf in NSW?
Correct Answer
B) An agency agreement
Under the Property and Stock Agents Act 2002 (NSW), an agent is not entitled to commission or expenses unless they act under a written agency agreement that is signed, contains the prescribed terms, and is copied to the client within 48 hours. The agency agreement is therefore the document that must be in place before the agent acts for the vendor.
Why This Is the Correct Answer
The written agency agreement appoints the agent, defines their authority and records the commission and expenses. Under section 55 of the Act, an agent who acts without a compliant agreement is not entitled to be paid.
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- → An assistant agent completes 5 units of CPP41419 in one CPD year, 2 more than required. What happens to the extra 2 units?
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