KEY TAKEAWAYS: Act in Your Best Interests: Your real estate agent has a legal duty to act in your best interests, provide honest advice, avoid conflicts of interest, and work to achieve the best possible outcome for your sale Present Every Genuine Offer: Unless you have given written instructions otherwise, your agent must promptly communicate every genuine offer received. The decision to accept, reject or negotiate an offer is always yours Be Honest, Transparent and Follow Your Instructions: Your agent must provide accurate information about pricing, market conditions, fees and buyer feedback. They must also follow your lawful instructions regarding the sale of your property, including pricing and whether to accept an offer. These three obligations form the foundation of the agent-vendor relationship and help ensure your property sale is conducted fairly, transparently, and in accordance with NSW law. Selling your home is one of the biggest financial decisions you’ll make. While choosing the right real estate agent is important, it’s equally important to understand the legal obligations that the agent owes to you throughout the sales process. In New South Wales, real estate agents are licensed professionals who must comply with the Property and Stock Agents Act 2002, the Property and Stock Agents Regulation 2022, and Australian Consumer Law. These laws are designed to protect sellers and ensure agents act professionally, honestly and in their clients’ best interests. Here are the key obligations every vendor should know. Your Agent Must Act in Your Best Interests: When you appoint an agent to sell your property, they owe you a fiduciary duty. This means they must put your interests ahead of their own and avoid situations where their personal interests conflict with yours. Your agent should: Provide honest advice about pricing and market conditions. Work to achieve the best possible outcome for you, Keep you informed throughout the sales campaign, Avoid acting in a way that benefits themselves at your expense. If an agent has a conflict of interest, they must disclose it to you. They Must be Honest and Transparent An agent cannot mislead or deceive you or potential buyers. This includes being honest about: The likely selling price, Current market conditions, Buyer feedback, Marketing costs, Offers received. If an agent recommends a particular strategy, they should explain why they believe it is in your best interests. All Offers Must Be Communicated One of the most important obligations an agent has is to promptly communicate every genuine offer made on your property, unless you have given written instructions otherwise. You-not your agent – decide whether to accept, reject, or negotiate an offer. Your agent should also explain the terms of each offer, including: Price, Deposit, Settlement period, Any special conditions, This allows you to make an informed decision. Your Agent Must Follow Your Lawful Instructions While your agent is there to provide advice and recommendations, the final decisions remain yours. Provided your instructions are lawful, your agent must follow them. This includes decisions about: The asking price, Whether to accept an offer, Whether to continue marketing, Auction or private treaty strategy, Settlement preferences, Your property cannot be sold without your authority. They Must Disclose Their Fees Before your property is marketed, your agent must provide you with a written agency agreement that clearly outlines: Commission payable, Marketing expenses, When payment becomes due, The services being provided, The duration of the agreement, Read this agreement carefully before signing and ask questions if anything is unclear. They Must Handle Money Correctly If your agent received deposits or other trust money, they must deal with those funds in accordance with NSW trust accounting laws. This means money must be deposited into a properly maintained trust account and handled in accordance with strict legal requirements. They Must Keep Your Information Confidential Your agent will often have access to personal and financial information during the sale. They should protect your confidential information and only disclose information where legally required or authorised by you. They Must Disclose Material Facts to Buyers Although your agent acts for you, they also have legal obligations to buyers. If an agent becomes aware of a material fact that could affect a buyer’s decision, they may be legally required to disclose it. This protects the integrity of the property market and helps reduce disputes after settlement. They Must Market the Property Responsibly Advertising must be truthful and not misleading. Your agent should ensure that: Photographs accurately represent the property, Marketing claims are supported by facts, Price Guides comply with NSW Legislation, Buyers are not misled by advertising, Responsible marketing protects both sellers and buyers. They Must Keep You Informed Throughout the campaign, your agent should provide regular updates about: Inspection numbers, Buyers feedback, Market response, Advertising performance, Offers and negotiations, Recommended next steps, Good communication helps you make informed decisions and reduces unnecessary stress. What If You Think Your Agent Isn’t Meeting Their Obligations? If you have concerns, raise them with your agent as early as possible. Many issues can be resolved through open communication. If the problem cannot be resolved, you may be able to seek assistance through NSW Fair Trading or obtain independent legal advice regarding your rights. Final Thoughts A good real estate agent is more than a salesperson – they are a professional representative entrusted with helping you achieve the best possible outcome from one of your most valuable assets. Understanding your agent’s obligations allows you to ask informed questions, recognise professional service, and identify when something doesn’t seem right. Selling your home should be a transparent, well-managed process. Knowing your rights as a vendor is one of the best ways to ensure your sale proceeds with confidence and peace of mind. Disclaimer: This article provides general information about real estate agency obligations in New South Wales and is not legal advice. Individual circumstances vary, and sellers should obtain independent legal advice where appropriate. ABOUT KAY VITOGIANNIS: Kay joined the Coutts team in May 2021, working as a Licensed Conveyancer within our Property & Conveyancing team in Narellan. Kay has over 20 years of experience in the Legal industry. She began her journey in CBD Conveyancing firms as a secretary and attained her Advanced Diploma in Conveyancing in December 2010. For further information,n please don’t hesitate to contact: Kay Vitogiannis Licensed Conveyancer info@couttslegal.com.au 1300 268 887 Contact Coutts today. 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 in relation to this blog, including all or any reliance on this blog or use or application of this blog by you. Contact Us