Buyers' agents recognised on contract

24 October 2018

In 2014, the Contract for the Sale and Purchase of Land was updated. There were 20 approved changes, including changing the name of the contract from Contract for Sale of Land to Contract for the Sale and Purchase of Land to give greater recognition to both parties to the contract and their respective rights and obligations.

Among the other numerous changes (between the addition of tick boxes and updated lists), there was another change that has positively impacted the real estate industry – the addition of the name and details of buyers’ agents on the front page of the contract.

Recognition where it’s due

Added at the request of REINSW, the inclusion of buyers’ agents’ details on the front page of the contract gives recognition to the increasing role they play in the purchase of property.

This change was obviously welcomed by the growing number of professional buyers’ agents across New South Wales.

“This is official recognition of the involvement of buyers’ agents in property transactions,” says Nick Viner of Buyers Domain. “Including our details on the contract highlights the importance of our profession.

“Since the mid-1990s, more and more buyers have been using buyers’ agents. Gaining our own space on the front page of the contract ultimately promotes greater awareness and understanding of the value we bring to the real estate buying process.

Improving transparency

“In the interest of transparency, including buyers’ agents’ details provides a record of the involvement of the buyer’s agent, improving accountability for the benefit of the consumer,” continues Viner.

“Buyers’ agents are licensed professionals. For the Contract of Sale and Purchase of Land to ignore the involvement of a buyer’s agent in a transaction was potentially misleading.”

Practical implications

“From a practical standpoint, and in situations where no selling agent is involved, the bank should be able to contact the buyer’s agent to organise practical matters, such as access to conduct a bank valuation,” says Viner.

“Including the buyer’s agent’s details on the front page of the contract will further improve the property buying process for the consumer. And that is the ultimate goal of a buyers’ agent.