Real Estate and Business Agents Act 1978

An agent is not entitled to receive any commission, reward, or other valuable consideration in respect of his services in that capacity unless —

he is licensed in that capacity and he holds a current triennial certificate in respect of his licence when he renders the services; and

he has a valid appointment to act in that capacity which is in writing signed by the person for whom the services are or are to be rendered or by some other person lawfully authorised to sign on behalf of the person for whom the services are or are to be rendered.

An appointment to act as an agent is not valid unless —

it is contained in a document which —

clearly sets out the services that are or are to be rendered; and

where specific property is to be the subject of those services, clearly identifies the property; and

clearly sets out the method by which the amount of any commission, reward or other valuable consideration to be received for those services is to be calculated; and

contains such other information, if any, as is prescribed;

and

the document is not an offer or acceptance or a contract, or a document purporting to be an offer or acceptance or a contract, binding or purporting to bind a party thereto to a transaction; and

the person obtaining the signature to the document gives a true copy thereof to the signatory immediately after the signing thereof (the onus of proof of which is upon the person obtaining the signature).

A person shall not demand or receive any commission, reward, or other valuable consideration in contravention of subsection (1) or (2), or both.

Penalty: $5 000.

Any commission, reward, or other valuable consideration received in contravention of subsection (1) or (2), or both, may be recovered as a civil debt recoverable summarily in any court of competent jurisdiction.

[Section 60 amended: No. 43 of 1994 s. 11; No. 59 of 1995 s. 9; No. 34 of 1998 s. 14.]

61. Maximum remuneration of licensees, fixing of etc.

The Commissioner may, with the approval of the Minister, by notice published in the Government Gazette fix the maximum amount of remuneration, whether by way of commission or otherwise, that a licensee is to receive for a service rendered by the licensee in the course of and incidental to the licensee’s business as an agent.

The Commissioner may, with the approval of the Minister, by further notice published in the Government Gazette, amend or revoke a notice under subsection (1).

An amount fixed under subsection (1) takes effect on the date on which the notice fixing the amount is published in the Government Gazette or on such subsequent date as is specified in the notice.

The Commissioner may fix an amount under subsection (1) by reference to —

the type of transaction negotiated and its value; or

the type of service rendered and the value of the property in respect of which the service was rendered.

If an amount is fixed under subsection (1) in respect of a service rendered by a licensee, the licensee is not entitled to receive for that service, in the licensee’s capacity as an agent, any commission, reward or other valuable consideration which exceeds that amount in value.

If an amount is not fixed under subsection (1) in respect of a service rendered by a licensee, the licensee is not entitled to demand, receive or hold for that service, in the licensee’s capacity as an agent, any commission, reward or other valuable consideration which is unjust in the circumstances.

The remuneration of an agent for services rendered by him in his capacity as agent in respect of a transaction he has negotiated is payable only on settlement of the transaction unless —

there is a failure to settle the transaction and that failure is due to the fault of the agent’s principal; or

it is a prescribed transaction.

In subsection (4) —

prescribed transaction means any of the following transactions —

the sale of a proposed lot under the Community Titles Act 2018 before the lot is created;

the sale of a proposed lot under the Strata Titles Act 1985 before the lot is created;

any other transaction prescribed, or that belongs to a class of transactions prescribed, for the purposes of this definition;

settlement, in relation to a transaction —

where the transaction is to be completed by the payment of the purchase price by way of a single payment (over and above the deposit), means the payment of the purchase price; or

where the purchaser is obliged to make 2 or more payments to the vendor (over and above any deposit paid within 28 days of the execution of the contract) before the purchaser is entitled to a conveyance or transfer of the subject matter of the contract, means the time at which the purchaser is entitled to possession, occupation or control of the subject matter or the time at which the purchaser has paid at least 10% of the purchase price, whichever is the later, or at any other time as may be prescribed by the regulations; or

where the transaction is of a kind specified in regulations, has the meaning prescribed by the regulations in relation to that kind of transaction;

transaction means —

a sale, exchange, or other disposal and a purchase, exchange, or other acquisition of real estate and any exclusive right whether deriving from the ownership of a share or interest in a body corporate or partnership; or

a sale, exchange, or other disposal and a purchase, exchange, or other acquisition of goods, chattels or other property relating to a real estate transaction of a kind specified in paragraph (a); or

a business transaction of a kind referred to in paragraph (a) or (b) of the definition of business transaction,

or both such a real estate transaction and a business transaction.

A licensee shall not demand, receive, or hold any commission, reward, or other valuable consideration in contravention of this section.

Penalty: $5 000.

Any commission, reward, or other valuable consideration received or held in contravention of this section may be recovered as a civil debt recoverable summarily in any court of competent jurisdiction.

[Section 61 amended: No. 128 of 1987 s. 89; No. 43 of 1994 s. 11; No. 59 of 1995 s. 10; No. 34 of 1998 s. 15; No. 58 of 2010 s. 134; No. 44 of 2016 s. 34; No. 30 of 2018 s. 179; No. 32 of 2018 s. 234.]