CBS Workshop - Sales Agency and Pricing Compliance
Issues included, sales agency, subsequent and extended agencies, vendor & agent pricing in the agency agreement, compliant dialogue in reference to pricing and advertising, price guides given verbally at open inspections and over the phone, clarifying market confusion regarding legitimate price disclosure and industry practices which may conflict with legislation and comparable sales versus recent sales in the context of misrepresentation.
We invited Attendees to get guidance from CBS on these issues and heard firsthand what issues authorised officers are looking for when carrying out an office audit.
Chris Gill chaired the Seminar with assistance from Paul Bertram, CBS Deputy Commissioner
and Senior Inspectors David Sedgwick and Josie Shimmin.
Issues of relevance included:
- Identifying your vendor and advice, check your Vendor is who they say they are, NEVER sign a contract on behalf of a vendor unless you have specific instructions to do so relevant to all variables to include price, settlement and any subject clauses.
- Deposit should be 10 percent and if insufficient deposit, the vendor could have a claim against the agent if this wasn’t discussed with the Vendor at the time of Contract signing, (you can always use a deposit bond to top the deposit up to 10%).
- Property details – watch for extensions and renovations without consent.
- Agency - Note R1 & R2 and recent sales must be given to the vendor before signing the agency – if no comparable sales, you need a note of explanation as how you arrived at your price. And beware at 91 days, if your agency has expired you have no authority whatsoever to act in any capacity on the property. Vendors selling price must be what the vendor will accept and all representation of price must be consistent with the Prescribed Minimum Advertising Price (PMAP) – best to give buyers all sales for 6 months.
- R3 - the workshop suggested that a clause be added making it clear that the agent acts for the vendor and the purchaser should get their own advice as to price.
- R6 – Make sure you have signed when listing a subject sale property for a property you have sold.
- Property Management, please note from 28 September Property Managers cannot work without a licence.
- Trust accounts, make sure you have a registered statutory trust account in the name in the trading entity.
At the end of the session there was a Q & A session and when asked did you gain anything from this presentation?
‘YES’ - a reminder how critical the paperwork is, ‘YES’ - CBS interaction is awesome, ‘YES’ - clarifying many grey areas, ‘YES’ - Chris Gill, crystal clear with explanations, ‘YES’ - great clarity and dialogue with CBS was paramount!
What did you like most?
CBS attendance and their explanations and responses, Chris Gill always makes a boring topic interesting! Was excellent to have reps from CBS - was very informative, it’s nice to hear CBS take a common-sense approach.
What would you tell others about this workshop?
Clarity of understanding complex legislation and access to CBS, Should be compulsory to attend this type of training annually, I have been to every Society CBS session so far and continue to learn, there is so much an agent needs to know.