47Duty of disclosure to client and prospective buyer of land

47 Duty of disclosure to client and prospective buyer of land

47 Duty of disclosure to client and prospective buyer of land

(1) A buyer’s or seller’s agent acting on the sale or purchase of land must disclose the following to the person for whom the agent is acting (the client) and (in addition, in the case of the seller’s agent) any prospective buyer of the land—

(a) any relationship, and the nature of the relationship (whether personal or commercial), the agent has with anyone to whom the agent refers the client or a prospective buyer for professional services associated with the sale or purchase,

(b) whether the agent derives or expects to derive any consideration, whether monetary or otherwise, from a person to whom the agent has referred the client or a prospective buyer and, if so, the amount or value of the consideration,

(c) the amount, value or nature of any benefit of which the agent is aware that a person to whom the agent has referred the client or a prospective buyer has received, receives, or expects to receive in connection with the sale, or for promoting the sale, or for providing a service in connection with the sale, of the land.

Note.

The following are examples of relationships for the purposes of subsection (1) (a)—

(a) a family relationship,

(b) a business relationship, other than a casual business relationship,

(c) a fiduciary relationship,

(d) a relationship in which 1 person is accustomed, or obliged, to act in accordance with the directions, instructions, or wishes of the other.

The following are examples for the purposes of subsection (1) (c) of persons who may receive a benefit—

(a) seller,

(b) finance broker,

(c) financial adviser,

(d) financier,

(e) property valuer,

(f) Australian legal practitioner,

(g) real estate agent.

Maximum penalty—200 penalty units.

(2) Disclosure to a person is effective for the purposes of subsection (1) only if—