So, you’ve made the decision to sell residential property in New South Wales and have appointed a selling agent to market the property for sale.
However, before you can legally offer the property for sale, you must have a Contract for Sale (Contract) that is prepared by your solicitor or licensed conveyancer (excluding particulars of the purchaser and purchase price). Furthermore, the prescribed documents required under section 52A of the Conveyancing Act 1919 must be attached to the Contract. Those prescribed documents include, but are not limited to, a section 10.7 certificate for the land within a local government area, diagrams from a recognised sewerage authority purporting to show the location of any sewer lines on the land and copies of all dealings lodged with the Registrar-General or registered that are shown on the property certificate for the land.
Section 66R of the Conveyancing Act 1919 makes it clear that a vendor must not, by written or broadcast advertisement, indicate that the property is for sale or is to be auctioned at any future time, amongst other things, unless the Contract and prescribed documents are available for inspection by prospective purchasers.
There are also similar provisions contained in the Property, Stock and Business Agents Act 2002 in relation to a real estate agent’s obligation not to offer residential property for sale without first having a Contract and prescribed documents available for inspection by prospective purchasers at the real estate agent’s registered office.
There are penalties for both the vendor and real estate agent failing to comply with these legal requirements. However, the penalties imposed on real estate agents for failing to comply with the provisions of the Property, Stock and Business Agents Act 2002 are far greater than those imposed on a vendor for similar offences under the Conveyancing Act 1919.