A seller's agent refers a prospective buyer to a mortgage broker who pays the agent a referral fee on settlement. What must the agent do for the disclosure to be effective under s 47 of the Property and Stock Agents Act 2002?
Correct Answer
B) Give the buyer the approved form at the referral, and have the buyer acknowledge it in writing.
Section 47(1) requires a seller's agent to disclose to the client and to any prospective buyer any relationship with a person they refer them to, and any consideration they expect from that person. Under s 47(2), disclosure is effective only if it is on the approved form, acknowledged in writing, and given at the time of referral and before a contract is entered into.
Why This Is the Correct Answer
Section 47(2) makes disclosure effective only on the approved form, acknowledged in writing at the time of referral.
Why the Other Options Are Wrong
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A NSW property manager arranges a 12-month residential lease for a landlord. Is this an AUSTRAC real estate designated service?
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A vendor has instructed her agent in writing not to pass on any offers below $850,000 (invented). Before exchange, a buyer makes a genuine written offer of $800,000. What does NSW law require of the agent?