If a Victorian Real Estate Agency donates $500 to charity can…
If a Victorian Real Estate...
If a Victorian Real Estate Agency donates $500 to charity can the real estate agency claim the donation as a business expense and if so is thisSubmitted: 8 years ago.Category: Australia Law
considered as a rebate as it ultimately creates a reduction in the amount of tax that the agency is liable to pay?
A copy of a REIV Exclusive Sale Authority is attached to refer to
Page 1 of 8
Exclusive Sale Authority
The Real Estate Institute of Victoria Ltd. ABN 81 004 210 897
Particulars of Appointment. This is a Continuing Authority - see Notices & Disclosures, Items 1 & 2
Agent’s Estimate Note: This is the Agent’s opinion and is not a valuation. If a price range is specifi ed, the
of Selling Price difference between the upper and lower amounts cannot be more than 10% of the lower amount.
Marketing Expenses including GST.
Tel: Fax: Email:
Tel: Fax: Email:
Date of this Agreement
$ or calculated as follows
The Vendor acknowledges
having been informed by the
Agent, before signing this
Authority, that the Agent’s
Fees and the Marketing
Expenses are subject to
if sold at a
Vendor’s Authorised $ payable in days
and upon payment of full purchase price OR upon terms on payment of full deposit
and the sum of $
Property is being sold with vacant possession or subject to a tenancy
(Section 47A of the
Estate Agents Act)
days from the date
of this Agreement.
days from the end
of the Exclusive
$ or between $ and $
*including GST *excluding GST
(delete whichever does not apply)
Will the Agent be sharing Commission
with anyone other than an Agent/agent’s
representative in the Agent’s employ or an
Agent with whom the Agent is in partnership?
If “Yes”, the Agent must complete and give to the
Vendor the “Notice of Commission Sharing” set out
in this Authority.
Copyright © 2007 The Real Estate Institute of Victoria Ltd.
This form or portions thereof may not be reproduced without the written permission of The Real Estate Institute of Victoria Ltd.
Page 2 of 8
1. Meaning of Expressions - unless inconsistent
with the context, the following defi nitions apply to this
Appointment which includes any attachments.
1.1 “Act” is the Estate Agents Act 1980 (as amended).
1.2 “Agent” includes any licensed agent or any agent’s
representative employed by the Agent.
1.3 “Appointment” includes “agreement” and/or
“authority” and the words “appoint” and/or
“appointed” shall have corresponding meanings in
the same situations.
1.4 “Binding Offer” is an offer on the terms set out in the
Particulars of Appointment which, if obtained in
compliance with this Appointment, would (or does)
result in a contract enforceable against the
1.5 “Conditions” include terms and vice versa.
1.6 “Continuing Authority Period” means the stated
number of days (if any) listed as the Continuing
Authority Period in the Particulars of Appointment
which period commences immediately upon the
expiry of the Exclusive Authority Period.
1.7 “Exclusive Authority Period” means the stated
number of days listed as the Exclusive Authority
Period in the Particulars of Appointment.
1.8 “GST” means any GST payable under the GST
1.9 “GST Legislation” includes A New Tax System
Goods and Services Tax) Act 1999, A New Tax
System (Goods and Services Transition) Act 1999,
and any other related legislation (whether or not
currently in force) and any regulations, rulings,
additions, amendments or alterations to the
1.10 “Introduced to the Property” means that the person
was made aware that the Property was available
to purchase irrespective from whatever source
Without limiting the foregoing a person shall be
deemed to have been Introduced to the Property by
the Agent if the person became aware that the
Property was available for purchase as a result of
viewing, hearing or reading any advertisements of
whatever nature or medium or any boards, placards
or other literature referring to the availability of the
Property that were connected to the Agent in any
1.11 “Marketing Expenses” are the Marketing Expenses
and charges of the Agent and include advertising
expenses and other outgoings.
1.12 “Person” includes a corporation, institution,
unincorporated body, incorporated association and
any group of persons and/or any agent or associate
of a person or any person appointed by the original
person to take the place of the original person.
1.13 “Price” means:
(i) an amount equal to or greater than the Vendor’s
Authorised Price stated in the Particulars of
(ii) the Price at which the Vendor signs a Contract of
Sale to sell the Property even if less than the
Vendor’s Authorised Price stated in the Particulars of
1.14 “Professional Fees” are the total of the “Agent’s
Commission” and the “Marketing Expenses” (as
duly authorised and expended).
1.15 “Property” means “Real Estate” as defi ned in
Section 4 of the Act.
1.16 “Purchaser” means the person to whom the
Property is sold.
1.17 “REIV” is The Real Estate Institute of Victoria Ltd of
XXXXX Camberwell, 3124.
1.18 “Sale” is the result of obtaining a Binding Offer and
“sell” and “sold” have corresponding meanings in
the same situations.
2. Where the Purchaser does not complete the
purchase and the Vendor is entitled to a forfeited
deposit the Vendor will take all reasonable steps to
recover the unpaid deposit from the Purchaser and/
or any other person who may be liable for payment
of the deposit and to pay the Professional Fees from
the sum of the deposit paid or recovered.
3. If the Vendor fails to pay the Agent any money due
under this Agreement then interest at a rate four per
centum higher than the rate for the time being fi xed
under Section 2 of the Penalty Interest Rates Act
1983 will be computed and paid to the Agent on the
4. Any signatory for a proprietary company Vendor
shall be personally liable for the due performance
of the Vendor’s obligations as if the signatory was
the Vendor. If required by the Agent the signatory
shall procure the execution by all Vendor company
directors of a guarantee to be prepared by or on
behalf of the Agent.
5. 5.1 The Agent is irrevocably authorised to deduct
from any deposit monies received all Professional
Fees properly incurred by the Agent and any
State or Federal Taxes required to be deducted by
law, including (but not limited to) any goods and
services tax or other consumption tax. This
authorisation may only be modifi ed with the written
consent of the Agent.
5.2 If the Property is sold and no deposit is
received by the Agent the Vendor will pay the
Professional Fees on demand including any State
or Federal Taxes, including (but not limited to) any
goods and services tax or other consumption tax.
5.3 Unless stated above to the contrary, the
Vendor will pay the maximum amount of Marketing
Expenses to the Agent upon signing this Agreement
and in any event Marketing Expenses will be
payable to the Agent upon demand. Upon the
conclusion of this Agreement, the Agent will
provide the Vendor with an itemised list of the
Marketing Expenses and State or Federal Taxes
expended or payable. The Agent will provide the
itemised list at any other time that may be
reasonably required by the Vendor.
5.4 If this Authority requires the Vendor to pay
reimburse or contribute to an amount paid or
payable by the Agent in respect of an acquisition
from a third party to which the Agent is entitled to
an input tax credit (as defi ned in the GST
Legislation) the amount for payment reimbursement
or contribution will be the GST exclusive value of
the acquisition by the Agent plus the GST payable
in respect of that supply but only if the Agent’s
recovery from the Vendor is a taxable supply under
the GST Legislation.
6. At the request of the Vendor, the Agent may sign on
behalf of the Vendor, a Contract of Sale which contains the
terms of sale agreed to by the Vendor.
Page 3 of 8
Notices & Disclosures
Item 1. Agent’s Entitlement to Commission
The Agent will endeavour to sell the Property in consideration for which the Vendor agrees to pay the Agent
the Agent’s Commission on the terms of this Authority if the Property is sold -
(i) during the Exclusive Authority Period by the Agent or by any other person (including the Vendor or
another Agent) for the Price and upon the above conditions; or
(ii) during the Continuing Authority Period by the Agent; or
(iii) to a person introduced to the property by the Agent before the Vendor signed this appointment; or
(iv) within 120 days after the expiration of the Exclusive Authority Period for the Price to a person
introduced to the property by the Agent within the Exclusive Authority Period and to whom, as a
result of the introduction, the Property is sold.
Items 1(ii), (iii) and (iv) shall not apply where the Vendor has incurred a liability to pay Agent’s Commission
under any Exclusive Agency agreement signed by the Vendor with another Agent after the expiration of the
Exclusive Authority Period.
NOTE: See the defi nition of Sell, Sale and Sold in the defi nitions in the General Conditions
Item 2. Continuing Authority Period
If the property is not sold during the Exclusive Authority Period and a Continuing Authority Period is stated
in the Particulars of Appointment then the Vendor appoints the Agent to sell the property on a Non-Exclusive
Agency basis for the period stated in the Continuing Authority Period.
The Vendor may terminate or delete the Continuing Authority Period at any time by written Notice to the Agent.
Item 1 is still applicable to this Authority even if the Continuing Authority Period does not apply or ceases.
In consideration of the Agent agreeing to endeavour to sell the property the Vendor will pay the Agent the
Agent’s Commission if the Property is sold by the Agent for the Price at any time during the Continuing
Authority Period except where the Vendor has incurred a liability to pay the Agent’s Commission under any
Exclusive Agency agreement signed by the Vendor with another Agent after the expiration of the Exclusive
Authority Period shown in this Authority.
If no Continuing Authority Period is stated in the Particulars of Appointment the Authority lapses (subject to
Item 1(ii), (iii) and (iv) above) at the expiration of the Exclusive Authority Period shown in this Authority.
Item 3. The Estimated Selling Price
The Estimated Selling Price is given in accordance with Section 47A of the Estate Agents Act 1980 and is the
amount the Agent or the Agent’s Representative believes, on the basis of his or her experience, skills and
knowledge, that a willing but not anxious buyer would pay for the real estate.
If a price range is given, it is the range within which that amount is likely to fall.
The Estimated Selling Price is an estimate only and is not a valuation.
Page 4 of 8
Notices & Disclosures (continued)
Item 3. The Estimated Selling Price (continued)
If a price range is given, the difference between the upper and lower limits of the range must not exceed 10%
of the amount of the lower limit of the range.
Nothing in the Act requires the Agent’s Estimated Selling Price and the Vendor’s reserve or asking price to be
the same amount.
Penalties apply to an Agent or Agent’s Representative making false representations as to their estimate of the
Item 4. Making of Complaints
Any complaint relating to commission or outgoings can be made to the Director, Consumer Affairs Victoria
(CAV) GPO Box 123, Melbourne, Victoria, 3001 or by telephoning 1300 73 70 30. Unless there are exceptional
circumstances Consumer Affairs Victoria cannot deal with any dispute concerning commission or outgoings
unless it is given notice of the dispute within 28 days of the client receiving an account for, or notice that the
Agent has taken the amount in dispute, whichever is later.
Item 5. GST and the Price
It is the responsibility of the Vendor to advise the Agent at the time of signing this Authority whether the Sale of
the Property will or may result in the Vendor having to pay GST in relation to the Price.
5.1 If the Vendor advises the Agent that GST will be payable on the Price and it is possible to quantify the
GST, the Vendor authorises the Agent to advertise the Property for sale at a price that is inclusive of
GST. If an advertisement includes a price, the Vendor acknowledges the Agent will state the price in
accordance with guidelines published by The Real Estate Institute of Australia Ltd. or, if there are no
guidelines, in accordance with published requirements of the Australian Competition and Consumer
5.2 If the Vendor advises the Agent that GST may be payable on the Price or if it will not be possible to
quantify the GST payable on the Price until the Property is sold or if the Vendor instructs the Agent
to sell the Property on the basis that GST will be paid by the Purchaser in addition to the Price then,
if in any of these instances an advertisement includes a price, the Vendor authorises the Agent to
advertise the Property for sale with a clear indication that GST may be payable in addition to the
Price, in accordance with guidelines published by The Real Estate Institute of Australia Ltd or, if there
are no guidelines, in accordance with published requirements of the Australian Competition and
Agent’s Warranty that the Agent is an REIV Member
The Agent warrants (and will confi rm upon request) that the Agent is at this date a member of the REIV, failing
which the Vendor (and any signatory for the Vendor) is released by the Agent from any obligation to pay any
This warranty cannot be deleted or modifi ed.
Agent Signs Vendor Signs
1. The Agent will not be entitled, or is not likely to be entitled, to any rebate.
2. The Agent will be entitled, or is likely to be entitled, to any rebate:
The Agent will be entitled, or is likely to be entitled, to any rebate in respect of:
(i) any outgoings; or
(ii) any prepayments made by the person engaging or appointing the agent (the client) in respect of
any intended expenditure by the agent on the client’s behalf; or
(iii) any payments made by the client to another person in respect of the work.
*complete or delete as appropriate
*Details of such entitlement are as follows:
(i) the goods or services to which the rebate relates:
(ii) the name of the person providing the rebate:
(iii) the amount of the rebate that will be attributable to the engagement or appointment, or if that
amount is not presently known, an estimate in dollars of the amount:
Agent Signs Vendor Signs
Rebate Statement - Section 48A-E of the Estate Agents Act
Important Notice for Vendors
A rebate includes any discount, commission, or other benefi t, and includes non-monetary
benefi ts. It is illegal for an Agent to keep any rebate they receive for advertising or other
outgoings purchased by the Agent on your behalf. Section 48A of the Estate Agents Act
1980 requires the Agent to immediately pay you any rebate they receive in relation to the
sale of your property.
Complete appropriate part of the Rebate Statement (delete either 1 or 2)
Page 5 of 8
Page 6 of 8
Section 54(1) of the Estate Agents Act 1980 provides that:
If an agreement stating that an estate agent is to act as the sole agent for the sale of any real estate or business does
not state when the sole agency is to end, the sole agency ends -
(a) in the case of a sale by auction, 30 days after the date of the auction;
(b) in any other case, 60 days after the date the agreement is signed by,
or on behalf of, the seller of the real estate or business.
Level of Service
The Vendor acknowledges that the level of services to be provided by the Agent has been negotiated and is *attached
or *as follows (*delete, if does not apply).
Notice of Commission Sharing (Delete by striking through if not applicable)
Important information for Vendors/Landlord(s)
If the Agent has agreed to share the commission that will be payable for selling, leasing or managing your property,
before getting your signature to engage or appoint them, they must give you this commission sharing statement.
This statement shows details of all other people who will share in the commission.
The Agent’s commission will be shared with other people (other than a licensed estate agent or an
agent’s representative employed by the agent, or a licensed agent who is in partnership with the agent.)
In accordance with Section 48 of the Estate Agents Act 1980, the agent states that the commission the agent is entitled
to under the terms of this Authority will be shared with other people as follows:
Name and address of person with whom commission is to
Description of such person
Signature of Agent Date Signatures of Vendor(s)/Landlord(s)
Page 7 of 8
1. The Vendor is obliged to pay the Agent -
(a) the Marketing Expenses incurred during the currency of this Agreement
whether or not a sale takes place;
(b) the Marketing Expenses *upon signing this Authority
or *upon written demand
2. The Vendor is obliged to pay the Agent the Agent’s Commission in accordance with Item 1 if the Vendor sells the
property during the Exclusive Authority Period.
3. The Vendor signed this Agreement before signing any binding Contract for the sale of the Property.
4. When signing this Agreement the Vendor received a counterpart from the Agent.
*Complete as appropriate whenever asterisk (*) appears.
Agent Signs Vendor Signs
Subsequent sharing of Commission to facilitate a sale
If during the Exclusive Authority Period or the Continuing Authority Period (“the authority periods”) the Agent wishes
to share the commission payable by the Vendor with another agent or person to facilitate the sale of the Property, the
Vendor agrees the agent may do so and agrees to promptly sign another authority on the same terms and conditions
as this Authority but the Vendor’s Asking Price, Agent’s Estimate of Selling Price and Dollar amount of estimated
commission may be adjusted (if necessary) and the authority periods must be adjusted to only include any days then
remaining unexpired under this Authority and the Notice of Commission Sharing will be completed to record the sharing
Privacy Act 1988
Collection and Use of Personal Information
Page 8 of 8
As your estate agent we collect personal information about you (if you are an individual) and
with your consent (indicated by the boxes in which there is an “X”) will use it for the following
to act for you and perform our obligations under this Authority, or carry out other instructions
you give to us during the term of this Authority;
to liaise with your conveyancer, legal practitioner, accountant, fi nancial planner or institution,
tradespeople, bodies corporate, government, statutory or municipal bodies or other necessary
third parties in connection with performing our obligations under this Authority or other
instructions you may give to us;
to advise The Real Estate Institute of Victoria Ltd (“REIV”) and/or realestateview.com.au Ltd
of the details of the sale of your property (except your name) for the purpose of enabling
either or both of them to collect and/or document details of sales of real estate and/or cause
to be published in print or electronic form details of sales of real estate for the benefi t of
estate agents, valuers, government departments, statutory or municipal bodies, and the
general public so there is an informed and transparent real estate market and also for
the benefi t of REIV members to assist them in providing the best possible service to their
to enable us to provide estimates of the selling price of real estate as required by the Estate
Agents Act 1980;
to enable us to prepare appraisals and/or valuations of real estate;
to enable us to promote our services and/or seek out potential clients;
unless you subsequently advise us in writing that we may no longer use your personal information
for any or all of these purposes.
We may be required to collect and use your personal information under Commonwealth and
Victorian laws relating to the sale of real estate, taxation, foreign investment, money laundering,
You may contact us between 9.00am and 5.00pm Monday to Friday (public holidays excepted) to
gain access to or amend the personal information we hold about you. Our contact details are on
the fi rst page of this Authority.
The main consequences for you if all or part of your personal information is not provided to us
are that we may not be able to act for you and/or perform our obligations under this Authority or
effectively liaise with persons with whom we will need to have contact to perform our obligations
under this Authority, or otherwise carry out other instructions you give to us.
I/We consent to the collection and use of my/our personal information for the above purposes.
Agent Signs Vendor Signs