44Appointment of real estate agents to be in writing

44 Appointment of real estate agents to be in writing

(1)  In this section –

agency agreement means an agreement, between a real estate agent and the owner of property or a business, under which the real estate agent agrees, as agent for the owner, to induce or attempt to induce, or negotiate with a view to inducing, people to do all or any of the following:

(a) acquire the property or business;

(b) make an offer to acquire the property or business;

(c) enter into a contract to acquire the property or business.

(2)  Except by leave of a court, a real estate agent named in Part 1(1) of the Register is not entitled to sue for, recover or retain any valuable consideration for services provided to a person by the agent in the capacity of a real estate agent unless the agent has a valid written appointment to act for the person in that capacity signed by the person or by a person authorised to sign on his or her behalf.

(3)  An appointment is not valid for the purposes of subsection (2) unless it is contained in a document that –

(a) generally sets out the services to be rendered by the agent; and

(b) if a specific property is the subject of those services, clearly identifies the property; and

(c) clearly indicates how any valuable consideration that the agent may receive is to be calculated; and

(d) clearly indicates the nature and extent of the expenses that the agent may incur on behalf of the person, and how those expenses are to be recouped; and

(e) clearly sets out how either party to the agreement may terminate the appointment.

(4)  An appointment by a person of a real estate agent named in Part 1(1) of the Register is not a valid appointment for the purposes of subsection (2) unless the person obtaining the signature to the appointment gives a copy of it to the signatory as soon as practicable after it is signed.

(5)  The onus of proof that subsection (4) was complied with is on the person who obtained the signature.