ANSWERS TO QUESTIONS ABOUT A BUYERS AGENT
Your buyers agent must be an independent licensed real estate agent working exclusively for you on a full time basis, providing you with market knowledge, negotiating skills and savings both financial as well as valuable time, at all times helping you avoid stress, frustration and indecision.
THE CHARACTERISTICS OF YOUR BUYERS AGENT (ADVOCATE) INCLUDE BUT ARE NOT LIMITED TO THE FOLLOWING:
- To act exclusively as a buyers agent in all real estate transactions;
- To be completely independent from vendors and selling real estate agents;
- To only receive income from buyers;
- To not list or sell real estate;
- To not act on behalf of, or receive income from any other party in a real estate transaction;
- To not represent a principal where a conflict of interest exists or is likely to arise;
- To hold a current buyers agent licence under the Property, Stock and Business Agents Act 2002 No 66 and any associated regulation;
- To have a thorough knowledge and understanding of and always act in accordance with all legislation relevant to buyer’s agency practice;
- To be able to execute a legislatively compliant written buyer’s agency agreement specifying the services to be provided and containing all applicable fees and disbursements, while clearly outlining both the agent’s and principal’s obligations under the agreement;
- To hold a current professional indemnity insurance policy.
The NSW Government introduced a new regulation effective 1st January 2013 whereby it is mandatory for a buyers agent to hold a current professional indemnity insurance. For full details, visit Property, Stock and Business Agents Amendment (Professional Indemnity Insurance) Regulation 2012.
ANSWERS TO QUESTIONS ABOUT WHAT ARE THE MAIN REQUIREMENTS:
- All licensees are required to hold current professional indemnity insurance appropriate for the industry to a minimum of $2,000,000 in the aggregate.
- Insurance is only required if the licensee engages in the activities for which the licence is required under the Property, Stock and Business Agents Act 2002.
- The policy must cover certain insurable events such as negligence, misleading or deceptive conduct, breach of professional duty, interference with intellectual property rights, and fraud or dishonesty by an employee.