The sales agent is required to disclose to a client certain benefits which may arise in a property transaction.
The Form R2 is a statement of disclosure by the agent of:
- The benefits he/she may receive from a third person to whom the agent has referred the vendor; and
- The benefits any person may receive from the property transaction.
The obligation to disclose is ongoing and arises as soon as the agent becomes aware of a benefit. However, if the benefit has already been disclosed in a sales agency agreement, the R2 is not required.
The Form R2 must disclose the following:
- The nature of the benefit
- The source of the benefit and
- The amount (or estimated amount or value) of any benefit that the agent or any other person receives or expects to receive from a third person.
A ‘benefit’ includes a rebate, discount or refund (e.g. advertising rebate or discount).
If the agent fails to disclose as required by the legislation, they may lose entitlement to sales commission and expenses and may incur a fine.
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