Australian Capital Territory Numbered Regulations Australian Capital Territory Numbered RegulationsSchedule 7 Terms specific to agency agreements for sale of business
(see reg 15)
1 Meaning of business in sch 7
In this schedule:
"business" includes professional practice.
2 Exclusive agency and sole agency agreements
(1) If the agency agreement is an exclusive agency agreement the agreement must include the following statement:
IMPORTANT: This is an exclusive agency agreement. This means you may have to pay the agent commission even if another agent (or you) sells the business or introduces a buyer who later buys the business.
(2) If the agency agreement is a sole agency agreement the agreement must include the following statement:
IMPORTANT: This is a sole agency agreement. This means you may have to pay the agent commission even if another agent sells the business or introduces a buyer who later buys the business.
(3) An agency agreement is an exclusive agency agreement if the agreement provides for the agent to be entitled to commission on the happening of an event whether or not the agent or the client, or both, is or are the effective cause of the happening of the event.
(4) An agency agreement is a sole agency agreement if the agreement provides for the agent to be entitled to commission on the happening of an event (whether or not the agent is the effective cause of the happening of the event) unless the client is the effective cause of the happening of the event.
(5) The statement under subclause (1) or (2) must follow immediately after the term required by schedule 3, clause 9 (Remuneration) and be no less prominent than that term.
3 Warning about other agency agreements
(1) The agency agreement must include the following statement:
WARNING: Have you signed an agency agreement for the sale of this business with another agent? If you have you may have to pay 2 commissions (if this agreement or the other agreement you have signed is a sole or exclusive agency agreement).
(2) The warning statement under subclause (1) must follow immediately after the term required by schedule 3, clause 9 (Remuneration) and be no less prominent than that term.
4 Transfer of liability for the leasing or hire purchase of inclusions
The agreement must include any written confirmation prepared for the purposes of schedule 8, clause 60 of any specific instructions given to the agent by the principal before the agreement is entered into about arrangements for the transfer to the purchaser of any liability for the leasing or hire purchase of goodwill, plant, fittings or stock in inventory included in the sale.
5 Specific instructions about marketing and inspections
The agreement must include any written confirmation prepared for schedule 8 clause 60 of any stated instructions given to the agent by the principal before the agreement is entered into about any of the following:
(a) the marketing of the business;
(b) the entitlement of prospective purchasers to inspect the premises of the business and the circumstances under which the inspection can be made;
(c) the entitlement of prospective purchasers to inspect records, books of account and other documents concerning the business and the circumstances under which the inspection can be made.