A 24G approval allows land agents and sales representatives to work within the law if they are buying a property they have appraised or been authorised to sell or are selling a property to an associate.
Associates usually include people such as:
- personal partner
- close relative
- people connected to you through work.
Associate table - a guide for industry
An alternative to the approval process is to sell the property at public auction. The auction must be prominently advertised for at least two consecutive weeks before the auction takes place.
Information about the requirements for 24G matters.
Check what you need to do before you begin.
It's best to seek legal advice if you're the authorised agent for the sale of a property or business where there may be a conflict of interest or beneficial interest.
Before you begin
Disclose benefits to the vendor
You must inform the vendor of the benefit to you, including things like your relationship to the purchaser and possible land development.
Independent valuation
You must arrange for an independent valuation of the property and make sure the valuer doesn't know the buyer's offer. The valuation must be paid for by the agent, sales representative or the purchaser. Include a valuation report stating the current market value with your application for 24G approval. A valuation is not required for the sale of a business.
Commission and expenses
You can't receive commission or claim expenses from the sale without approval. If you feel you have good reason to seek payment you can request approval from Consumer and Business Services (CBS) when you apply. Expenses that have been paid in advance also need to be advised and approved by CBS.
What happens next
24G approvals may be refused if the Commissioner believes that:
- the agent or sales representative is not acting in the best interest of the vendor
- the vendor is likely to suffer detriment as a result of the transaction
- the application has not been submitted in the correct manner and form
- requested information and documentation is inaccurate, incomplete, misleading or not provided.
Application processing times vary and can take several weeks to assess. This can affect the settlement date so advise the vendor of possible delays before they sign a contract. You will be given an estimated time frame when you lodge the application.
