A South Australian land agent is authorised to sell a home, and the agent's family company wants to buy it. Under the Land and Business (Sale and Conveyancing) Act 1994, what applies?
Correct Answer
D) It is prohibited unless the Commissioner approves it before the interest is obtained
Section 24G of the Land and Business (Sale and Conveyancing) Act 1994 (SA) prohibits an agent authorised to sell land, its sales representatives and their associates (which includes related companies) from obtaining a beneficial interest in that land, including by purchase or option, unless the Commissioner approves beforehand. Penalties are higher where the vendor is 70 or older or otherwise vulnerable, a court can order any profit paid to the vendor, and the agent cannot take commission without the Commissioner's approval.
Why This Is the Correct Answer
Section 24G of the Land and Business (Sale and Conveyancing) Act 1994 (SA) prohibits an agent, or an associate such as a family company, from obtaining a beneficial interest in land the agent is authorised to sell, unless the Commissioner approves before the interest is obtained.
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