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property_agents_and_managers
English

Management of residential property or rural land 

Agency agreement terms

1. Identification of property 

The agreement must specify the address of the property to which the agreement applies or must contain a description of the property sufficient to clearly identify it. 

2. Names of parties to agreement 

The agreement must specify the names of each of the parties to the agreement, including the licensee. 

3. Information identifying the parties 

The agreement must specify the address of the person on behalf of whom the agent is acting, the licensee’s licence number and any business name under which the licensee conducts business.

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4. Authority of the person on behalf of whom the agent will act to enter into agreement 

The agreement must contain a statement to the effect that the person on behalf of whom the agent is acting warrants that the person has authority to enter into the agreement.

5. Authorisation for licensee to act on behalf of person 

The agreement must include a term containing particulars of the extent of the licensee’s authority to act as agent on behalf of the person they are providing services to under the agreement.

6. Period of duration of the agreement 

The agreement must contain a term indicating the period for which the agreement remains in force or indicating that the agreement remains in force until terminated. 

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7. Termination of the agreement 

If the agreement provides for its termination by a party to the agreement, the agreement must indicate how and when it can be terminated.

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8. Reimbursement of licensee 

If the licensee is to be entitled to any sum or reimbursement for expenses or charges incurred by the licensee in connection with services provided under the agency agreement, the agreement must include a term that:

(a) states that the licensee is so entitled
(b) describes those services
(c) specifies the amount that the licensee is so entitled to and when it is payable
(d) states that those services and amounts cannot be varied except with the agreement in writing of the person on behalf of whom the agent is acting. 

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9. Remuneration 

The agreement must include a term specifying:

(a) the circumstances in which the licensee is entitled to remuneration (by way of commission or otherwise) for services performed under the agreement, and
(b) the amount of the remuneration or the way in which it is to be calculated, and
(c) when the remuneration is payable. 

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10. Extent of agent’s authority 

The agreement must include any written confirmation prepared for the purposes of clause 4 of the Real estate agents, Rules of conduct or the Stock and station agents, Rules of conduct of the extent of the agent’s authority to undertake the following duties in connection with the management of the property and any limitations on the agent’s authority to undertake those duties:

(a) obtaining references from prospective tenants, arranging inspections of the property by prospective tenants and choosing a tenant
(b) entering into and signing a tenancy agreement (specifying the term for which the property may be let)
(c) undertaking inspections of the property
(d) effecting repairs to and maintaining the property or engaging tradespersons do so and limitations on expenditure that may be incurred by the agent without obtaining the approval of the person on behalf of whom the agent is acting
(e) paying disbursements and expenses incurred in connection with the agent’s management of the property
(f) collecting rent
(g) receiving, claiming and disbursing rental bond money
(h) serving notices for breach of a tenancy agreement or to terminate a tenancy agreement
(i) undertaking the necessary steps to obtain vacant possession and recover any money owing to the person on behalf of whom the agent is acting in relation to the tenancy of the property
(j) representing the person on behalf of whom the agent is acting in any tribunal or court proceedings in respect of a tenancy of the property
(k) paying accounts for amounts owing in relation to the property (for example, water rates and charges, council rates, maintenance expenses or owners corporation levies)
(l) advertising the property for letting or re-letting
(m) reviewing the rent at the end of a tenancy.

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11. Accounting to the person on behalf of whom the agent is acting in respect of money received 

The agreement must specify the manner in which and the frequency with which the agent is required to account to the person on behalf of whom the agent is acting in respect of money received by the agent on behalf of the person.

12. Disclosure of rebates, discounts or commissions 

The agreement must include provision for the licensee to identify the source and amount or estimated amount of all rebates, discounts or commissions the licensee will or may receive in respect of expenses payable by the client for the services to be provided by the agent. 

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