It is against the law to offer a Residential Property for Sale in NSW without first having the proposed Contract of Sale prepared including all mandatory disclosures.
Please read this REINSW article: NoContract? No Show! for a detailed discussion on this topic.
"A valid contract for sale is also a must before any inspections take place.
Section 63(2) of the Property, Stock and Business Agents Act NSW 2002 (the "PSBA") requires a contract for sale to be available for inspection at all times when an offer to purchase residential property may be made.
Under section 63(3), an agent is considered to offer a residential property for sale when, expressly or by implication, they:
🏡 Indicate that the property is for sale or is to be auctioned at any future time;
🏡 Offer to sell the property;
🏡 Invite offers to purchase; or
🏡 Indicate that a person may be willing to grant an option to purchase the property.
If an agent fails to comply with section 63, they could be subject to a substantial penalty up to $11,000 …
"When you consider that an agent could lose their licence or be fined, it is prudent to wait a week for a contract to be prepared or explain to the vendors that they too would be at risk if something were to go wrong," he says.
So, as you can see, it is not only best practice – but in line with the legislation – to ensure both an agency agreement and contract for sale are in place before offering a property for sale in NSW.”
This FAQ was created by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.