Does an Agent need a Contract for Sale to market a property?
For all residential property – the short answer is YES. A residential property cannot be marketed by an Agent or vendor (if no Agent is involved) until a Contract for Sale has been prepared and is held by them.
Residential property is land on which not more than two places of residence are situated (or under construction), vacant land or a place of residence in a strata scheme.
Before a residential property can be put on the market, a Contract for Sale must be prepared. There are certain certificates and documents that are required, by law, to be attached to the Contract for Sale. They include, but are not limited to, the following:
- Title search, together with all relevant plans and dealings.
- Section 10.7(2) Certificate. This is a zoning certificate issued by the local Council.
- Sewer location print and drainage diagram.
- Residential Tenancy Agreement or Lease if there is a tenant in the property.
- Compliance or non-compliance certificate if there is a swimming pool at the property.
- Home Owners Warranty Insurance if building work has been completed in the last 6 years.
There may also be certain conditions that need to be added to the Contract to disclose any information that a potential buyer will need to know about the property and to make sure all improvements, inclusions and exclusions are correctly noted.
Fines can be imposed on Agents under the Property, Stock & Business Agents Act 2002 (NSW) for marketing your property without a Contract and on your Solicitor/Conveyancer under the Conveyancing Act 1919 (NSW) for providing a Contract that is incomplete.
Therefore, it is a great idea to get in touch with your legal representative to arrange the Contract prior to the property going on the market.
This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever to this blog, including all or any reliance on this blog or use or application of this blog by you.