It is generally prohibited for an agent to act on behalf of both the vendor and purchaser of the same land or business at the same time. The Land and Business (Sale and Conveyancing) Act 1994 states that an agent will be subject to a maximum penalty of $20,000 if they do act on behalf of both a vendor and purchaser at the same time.
However, special circumstances may arise where this can happen without penalty. If the following circumstances apply to you, then the agent may act on your behalf if they firstly give you this warning notice and you acknowledge receipt of it by signing below.
The specific circumstances occur when:
In order for an agent to act on your behalf you must complete a sales agency agreement with the agent. If your proposed purchase of the vendor’s land or business falls through, you may still be required to comply with certain obligations under the sales agency agreement, including the payment of fees. This will depend on the wording of the agreement. If you are unsure about your obligations under a sales agency agreement you should consult an independent legal advisor.