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Selling without a contract NSW

Discussion in 'The Buying & Selling Process' started by Rayan, 30th May, 2016.

  1. Rayan

    Rayan Active Member

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    I have enquired with a property listed on re.com and requested a copy of the contract from the agent.

    Have been told- by the agent- in writing- that they don't have a contract available yet!!

    Is it not illegal in NSW to advertise a property for sale without a contract prepared?

    Thoughts on this agents conduct/strategy?
     
  2. datto

    datto Well-Known Member

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    Oh no the agent has not complied:

    Sale contracts - NSW Fair Trading

    Of course you could use the agent's error as leverage to get the price you want :D

    Don't worry about the agent's strategy, this would be my strategy lol.
     
  3. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Sales agents not adhering to the law? Surely not??? :D
     
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  4. Mumbai

    Mumbai Well-Known Member

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    I have never ever ever heard a sales agent NOT complying with the law.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    There is probably a contract, but it is not complete yet - they are probably waiting on the s149 certificate.
     
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  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Yes, an agent may not offer a property for sale without a contract.

    He might have jumped the gun expecting a contract to be available by the time the advert was uploaded on re.com Either way the agent seems a bit naive to have admitted their mistake in writing. Use the situation to your advantage to get an inspection before everyone else.
     
  7. Mick Butterfield

    Mick Butterfield Well-Known Member

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    Is the property greater than 6.5 acres? In NSW if the land component is greater than or equal to this there is no compulsion to have a marketing contract.
     
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  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    They are still in breach s 63 of PSBA Act if the required documents are are missing from a contract.
    PROPERTY, STOCK AND BUSINESS AGENTS ACT 2002 - SECT 63 Proposed contract for sale of residential property

    This includes a s149 certificate because of schedule 1 of the Conveyancing (Sale of Land) Regs 2010
    CONVEYANCING (SALE OF LAND) REGULATION 2010 - SCHEDULE 1

    Mick's right This only applies to 'residential property' which doesn't include land used for non-residential purposes or land over 2.5 hectares in size
    s 66Q Conveyancing Act
    CONVEYANCING ACT 1919 - SECT 66Q Meaning of “residential property”
     
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  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Mick - you have exaggerated slightly I think. it is 2.5 hectares which is just under 6.2 acres
     
  10. Mick Butterfield

    Mick Butterfield Well-Known Member

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    Haha better safe than sorry.
     
  11. hash_investor

    hash_investor Well-Known Member

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    Ever came across the type of advertisements "offers above $X"? They are only allowed if owner will accept the $X. Most of the time the agent / owner will refuse these offers.

    Can we accept this situation to our advantage ? Has anyone tried to do that?
     
  12. Scott No Mates

    Scott No Mates Well-Known Member

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    You can no longer advertise as > $X in NSW
     
  13. hash_investor

    hash_investor Well-Known Member

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    Talking about QLD. It is allowed as long as the owner is willing to accept X. If they are not willing to accept X then it is illegal.
     
  14. Rayan

    Rayan Active Member

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    It's a standard property and it's now been advertised over a week and STILL no contract.

    And spoke to a second agent today regarding a different property, also listed since last week on re.com and he tells me he doesn't have a contract on that one either!

    I have been buying real estate for awhile, but have never had an agent tell me he doesn't have the contract, now I have had two agents do it within two days. I suspect it must be a strategy. Trying to insist you inspect the property before seeing the pitfalls in the contracts maybe? It just seems ludicrous to me. They can't sell it without the contract so why bother starting to market?

    But this year I have seen everything:

    Sold Price for 26 Oxford Street Newtown NSW 2042

    This property in Newtown was being sold with no occupation certificate AND no title. They vendor had a proposed subdivision of one lot into a separate title and the contract stipulated that the vendor had 12 months to get the title or the contract was void. And it STILL sold for $500k above the price guide. Love the Sydney market.
     
  15. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I have seen this a few times. It can be due to an agent trying to lock in the seller before the searches are back and/or like you say it could be trying to get the buyers interested before something potentially bad in the contract.