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.
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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?