Prior appointment of another property agent
21 Prior appointment of another property agent
Before accepting an appointment to act as a property agent for a client to perform a service, the property agent (the new agent) must take reasonable steps to find out whether the client has already appointed another property agent (an existing agent) to act as a property agent to perform the service.
If the service mentioned in subsection (1) is to let lots or to collect rent for lots in a building complex, the new agent must also take reasonable steps to find out whether the client has already appointed a residential letting agent (also an existing agent) to let lots or to collect rent for lots in the complex.
The new agent must not solicit or accept the appointment if—
the new agent knows, or should know, the appointment of an existing agent to perform the service is in force; and
the client may have to pay the following if the client appoints the new agent to perform the service—
a commission under each appointment;
damages for breach of contract under the existing agent’s appointment.
However, subsection (3) does not apply if, before the client signs the new agent’s appointment, the new agent gives the client a written statement that, if the client appoints the new agent to perform the service, the client may have to pay the following—
a commission under each appointment;
damages for breach of contract under the existing agent’s appointment.
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