Can a real estate agent disclose other offers? Do agents have to report a sale price? Your guide to private treaty sales in the ACT

In a private treaty sale, the seller sets a price and buyers present their offers, whereas an auction sees the offers presented in a public format.

READ MORE: What you need to know before bidding at an auction

Rules around private treaty sales differ in each state and territory.

Here, Peter Walker, licensed sales agent at Ray White Canberra, and Benjamin Grady, director of property at BAL Lawyers, clarify what agents are required to tell buyers in a private treaty sale.

While most properties listed for sale by private treaty will have a price guide, it's not a legal requirement in the ACT, according to Mr Grady.

"Agents are only required to provide an estimate of the selling price (or price range) in their sales inspection report which is provided to the seller," he said.

"In practice, agents tend to provide buyers with a price guide as this is helpful for prospective buyers to put forward a reasonable offer for the seller's consideration."

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While in the ACT it has become commonplace to see properties advertised with prices that include terms such as 'offers above' or 'offers over' a certain amount, this isn't permitted in NSW.

NSW agents who use these terms, or any symbols that could obscure a property's estimated value, such as a plus symbol at the end of a price, can face fines of up to $22,000.

Under ACT laws, real estate agents are required to submit all buyer offers to the seller until the exchange of contracts.

"Unless the seller instructs the agent not to, the agent must submit to the seller all offers put to the agent, either verbally or in writing, as well as the identity of the prospective buyer," Mr Walker said.

"In practice, the agent will qualify the offer, by confirming the details of the buyer's finance status (approved subject to valuation or finance approval pending) and other pertinent details, including the anticipated exchange and settlement dates, and if the buyer will pay the deposit on exchange or by instalments (5 per cent on exchange and the balance on settlement)."

Agents are allowed to disclose offers with other buyers, however personal details must not be mentioned.

Mr Walker said agents have differing opinions on how they advise prospective buyers of these offers.

"Agents are not prevented from disclosing an offer price or the terms of an offer submitted by another prospective buyer, but the agent must not disclose confidential information relating to the prospective buyer unless they have the consent of that prospective buyer," he said.

Once a private treaty sale is finalised, ACT guidelines do not require real estate agents to disclose a sale price.

Mr Grady noted, however, the terms and conditions of online service providers can require the disclosure of the price for the purposes of publishing on their website.

Once settlement occurs, a sale price can be obtained by carrying out a land title search.

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