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Disclose, Disclose, Disclose

22 Aug 14

REISA members are reminded about their obligations to disclose any benefit they receive in the course of their dealings with vendors and purchasers. Section 24C of the Land and Business (Sales and Conveyancing) Act essentially states that:

1.      An agent must disclose to the client~

1.      (a)  the nature, source and amount (or estimated amount or value) of any benefit the agent receives or expects to receive from a third person to whom the agent has referred the client, or with whom the agent has contracted, for the provision of services associated with the sale or purchase; and

2.      (b)  the nature, source and amount (or estimated amount or value) of any other benefit any person receives or expects to receive in connection with the sale or purchase.

Maximum penalty: $20 000. 

The definition of a "benefit" within the legislation is deliberately broad and so for the abundance of caution, REISA recommends that members take a similarly broad view as to what is captured.

REI Forms Live includes an area for this information to be suitably disclosed. REISA is aware of a range of benefits that flow to members from a broad range of third party suppliers and such benefits must be disclosed - even if an exact amount of the benefit is unknown, then a reasonable estimate should be made. It is not unusual for such benefits to flow to agents in sale transactions, and most importantly disclosure must be made.  

REISA reminds members about this obligation specifically as a result of the recently announced arrangements by for the provision of data.