In the realm of real estate agency businesses, various roles exist, each carrying different regulatory requirements under the Property and Stock Agents Act 2002.

While some roles may not necessitate a license or certificate of registration, it’s crucial to understand the distinctions.

Certain administrative roles within agencies often do not require a license or certificate under the Act. For instance, individuals engaged in administrative support tasks that aid licensed agents or certificate holders typically fall into this category. While the law doesn’t specify all exempt functions, it primarily focuses on regulating specific functions outlined in the Act.

Let’s take a look at some practical examples to better illustrate these concepts:

Example 1: Administrative Support

Andre operates a property management agency where casual employees assist with administrative tasks, such as sending work orders to contractors and managing tenant details. These employees do not require a certificate of registration or license for their duties, but authorization for certain actions must come from a licensed agent.

Example 2: Receptionist Duties

Tania serves as a receptionist in a real estate agency, handling customer inquiries, issuing keys to tenants, and coordinating appointments. Her administrative functions do not mandate a certificate or license. However, she must refrain from performing tasks reserved for licensed agents, such as providing advice to clients.

Example 3: Livestock Sales Coordination

Murray works for a stock and station agent in regional NSW, mainly assisting with livestock sales coordination. While his role doesn’t demand a certificate or license, he should avoid tasks requiring specialized licensing, like managing property inspections or providing advice to clients.

Gazumping occurs when an agent or seller accepts your offer to buy a property at an agreed price but sells it to someone else, usually for a higher amount.

The agent must pass on any further offers until contracts are exchanged. In NSW, a sale is binding upon exchange, where both parties sign contracts and a deposit is usually paid.

If you’re gazumped, neither the agent nor the seller are obliged to compensate you for expenses like legal advice or inspection reports, but your expression of interest payment should be refunded.

To protect yourself:

1. Have pre-arranged loan finance and the 10% deposit ready.
2. Get the sale contract early and have it checked by a conveyancer.
3. Aim to exchange contracts quickly to avoid gazumping. Residential buyers have a five-day cooling-off period, which can be extended by agreement.
4. During the cooling-off period, you can do inspections, but rescinding the contract forfeits 0.25% of the purchase price.
5. Negotiate firmly and ensure your offers are passed on by the agent.
6. Ask for written evidence of passed-on offers if possible.
7. Be prepared to increase your offer if needed.
8. Remember, the vendor can change their mind before contracts are exchanged, and they’re not obligated to sell to any specific buyer.