Supervision Guideline – No. 5. Ongoing dealings with parties to an agency agreement

Supervision guidelineFurther clarification
5.1. A principal licensee must prepare and maintain written procedures that ensure all communication during the provision of services under an agency agreement is with the owner of the property or the person with the legal right to act on the owner’s behalf.

5.2. Without limiting clause 5.1, the written procedures for ongoing communication must ensure:
5.2.1. persons engaged in the business only use contact details held on the file which have been confirmed to belong to the person who is party to the agency agreement,
5.2.2. if a party to the agency agreement requests to change their contact or bank details, the change of details is confirmed, via an alternative contact method to the way in which the request originated with all parties to the agency agreement.
Agents must ensure they have written procedures to ensure continued communication is ALWAYS with the owner / client [or the person who has the legal authority – e.g., power of attorney].
Hence, why it is important the agent does ALL relevant identity checks – [refer guideline #4]

The agent must ALWAYS use the contact details provided in the agency agreement– mobile number/s, email address/es, postal address Be wary if a change is made to the contact details.
If the owner/client does advise the agent of a change of number or email or other contact detail or bank account detail – agent MUST verify, it is in fact genuine and from the actual owner/client.

Some methods to verify:
– Call the client
– Meet with the client [and ideally have them sign the change]Do not click, respond to the email sent- as it may trigger a spam. Do above 2 points first.