An assistant agent (certificate of registration holder) in a NSW property management business meets an investor, completes the inspection report and signs a management agency agreement with the investor on the agency's behalf. What is the correct position?
Correct Answer
B) A Class 1 or Class 2 licensee must sign it for it to bind
NSW Fair Trading states that certificate of registration holders cannot enter into an agency agreement; to be legally binding it must be signed by a Class 1 or Class 2 licence holder. Assistant agents can still prospect for clients, contribute to preparing the agreement and carry out inspections, but the licensee who enters the agreement must be satisfied the inspection report is accurate.
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An agent records the estimated selling price in a NSW residential sales agency agreement as a range with a lower figure of $900,000 (an invented example). What is the highest upper figure the range may lawfully show?
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