REIQ Best Practice Guidelines v03.23 - Flipbook - Page 81
14. ADVICES
15. PREPARING A CONTRACT
Member C&I Agents should refer their
Client to seek legal advice and financial
advice prior to a contract of sale being prepared to:
(a) ascertain the correct legal entity name and
details for the seller and if any special
conditions are needed if the seller is a trust,
personal representative or attorney;
(b) ensure the Client has sought the appropriate
tax and financial planning advice they may
require prior to selling their property;
(c) ascertain what disclosure (if any) needs to be
made about the property to any prospective
buyer prior to entering the contract; and
(a) If a Member C&I Agent is instructed to prepare
a contract for sale by a Client, the Member C&I
Agent should provide a warning to the Client
that:
i.
the Member C&I Agent can facilitate a
contract but cannot provide legal
advice or services (ie. drafting special
conditions) with respect to the
contract;
ii.
that the Client may incur significant
financial or legal consequences if they
do not receive specific legal and
financial advice; and
iii.
that the Member C&I Agent has
recommended the Client obtain legal
advice in relation to the contract of
sale.
(d) provide any special conditions the seller may
need in a contract for sale for their specific
circumstances, including but not limited to:
i.
to deal with GST and land tax;
ii.
with respect to commercial or retail
tenancies in compliance with relevant
legislation; and
iii.
to deal with matters specific to the
type of commercial property being
sold including varying any standard
conditions which may be desirable to
the Client.
Watch the
REIQ Commercial
Contract Update
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REIQ BEST PRACTICE GUIDELINES
V08.23
(b) If a Member C&I Agent prepares a contract for
sale, the Member C&I Agent must ensure:
i.
they have completed the particulars of
the contract correctly and with
reasonable care;
ii.
they have inserted the correct legal
description of the Client and buying
entity;
iii.
they have expressed the price clearly
as GST inclusive or exclusive and
completed the GST schedule correctly;
iv.
they have completed the legal
description of the property correctly;
v.
they have completed the disclosure
details correctly and without omission,
including
title
encumbrances,
improvements and chattels, lease
schedule, service contract schedule,
body corporate disclosure; and
vi.
if a special condition is required to deal
with anything, the Member must only
insert a special condition if they are
certain that condition has been
prepared by a Legal Practitioner.
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