SARAH KAYE & CO.

Gazumping is one of the most frustrating experiences for property buyers. Imagine having your offer accepted on a Northern Beaches property, only to be told later that the seller has taken a higher offer from someone else. Unfortunately, this happens often—but is it legal?

Is Gazumping Legal in NSW

Yes, gazumping is legal in New South Wales. Until contracts are exchanged, the seller is under no legal obligation to proceed with your offer, even if they have verbally accepted it or confirmed in writing.

Under the Property and Stock Agents Regulation 2022 (NSW), Section 6, if you pay a deposit before exchange, the agent must inform you in writing that:

• The seller has no obligation to sell the property to you.
• You have no obligation to proceed with the purchase.
• Your deposit is fully refundable if the contract is not signed.

This means that even if you put down a deposit, the seller can still accept a better offer from another buyer. The only way to secure a property is through a signed contract.

How to Avoid Gazumping

If you’re looking to buy a home on the Northern Beaches, here’s how you can reduce the risk of being gazumped:

1. Move Quickly to Echange Contracts

✅ A property sale only becomes legally binding once contracts are exchanged.
✅ Work with a solicitor or conveyancer to finalise everything and arrange a quick exchange.

2. Request a Cooling-Off Period

✅ Some buyers exchange contracts with a 5-day cooling-off period, which prevents the seller from accepting another offer.
✅ If you back out during this period, you’ll forfeit 0.25% of the purchase price.

3. Consider Buying at Auction

✅ Auctions eliminate gazumping, as the sale is legally binding immediately when the hammer falls.

4. Negotiate a Binding Pre-Contract Agreement

✅ Some buyers attempt to lock in the deal with a pre-contract agreement before exchange.
✅ However, these agreements are not standard practice and may not always be enforceable.

What This Means for You

If you’re serious about buying a Northern Beaches property, don’t assume that a verbal agreement or depositsecures the deal. Gazumping happens often, so it’s crucial to protect yourself by:

✔ Acting fast to exchange contracts.
✔ Engaging a solicitor or conveyancer early in the process.
✔ Understanding that until contracts are signed, nothing is guaranteed.

If you want a stress-free and secure property purchase, working with a trusted Northern Beaches buyers agentensures you have an expert in your corner to navigate these risks, negotiate effectively, and help you secure the right property without the uncertainty of gazumping.

Why Work With a Northern Beaches Buyers Agent?

As an independent buyer’s agent on the Northern Beaches, we ensure you:
✅ Move faster to secure your ideal property before someone else does.
✅ Negotiate from a position of strength with expert guidance.
✅ Access off-market opportunities to avoid competitive bidding wars.

If you’re looking to buy property on the Northern Beaches—whether in Manly, Dee Why, Freshwater, Palm Beach, or beyond—having a trusted advocate in your corner can make all the difference.

Many homebuyers assume that the real estate agent they meet at an open home or through a listing can help them secure a property in their best interests—but this is not the case under NSW law.

If you’re looking to buy property in the Northern Beaches, it’s critical to understand who works for whom in a property transaction.

The Legal Reality: Who Does a Real Estate Agent Work For?

Under the Property and Stock Agents Act 2002 (NSW), Section 48, a real estate sales agent is legally obligated to act in the seller’s best interests.

Here’s what this means for buyers:

• A real estate agent cannot legally represent both the buyer and seller in the same transaction.
• The seller’s agent’s duty is to secure the highest price and best terms for the seller—not the buyer.
• The agent is paid by the seller, creating an inherent conflict of interest when engaging with buyers.

Simply put, if you’re purchasing a property, the real estate agent you’re dealing with is not working for you—they are working for the seller.

What About Buyer’s Agents?

To ensure independent representation, buyers can engage a licensed Northern Beaches buyer’s agent, whose sole duty is to act in their best interests. Unlike real estate sales agents, buyer’s agents:

✔ Negotiate exclusively for the buyer—working to secure the best possible price and terms.
✔ Are prohibited from accepting commissions or fees from the seller or selling agent, ensuring unbiased advice.
✔ Are legally bound to act in the buyer’s best interests, ensuring fair representation, transparency, and protection.

By working with a trusted Northern Beaches buyer’s agent, you gain an expert who understands the Northern Beaches property market, giving you an advantage in negotiations and access to off-market opportunities.

What This Means for You as a Buyer

If you’re looking to buy a home in the Northern Beaches, it’s essential to understand that a sales agent’s role is to maximise the seller’s profit. That means they are not on your side.

A buyer’s agent, however, works exclusively for you—helping you:

✔ Find and secure the right property in Manly, Dee Why, Freshwater, Palm Beach, and other Northern Beaches suburbs.
✔ Negotiate from a position of strength, ensuring you don’t overpay.
✔ Avoid costly mistakes and confidently navigate the buying process.

For truly independent representation, consider engaging a licensed buyer’s agent in the Northern Beaches—someone who will help you secure the right property at the right price, without hidden agendas.

Many buyers assume that the advertised price of a property reflects what the seller is actually willing to accept. However, this is not always the case. Underquoting—when a property is marketed at a price lower than its likely selling price—is illegal in NSW, yet it still occurs in subtle ways.

If you’re looking to buy property in the Northern Beaches, understanding underquoting laws can help you avoid misleading price guides and wasted time.

What Does NSW Law Say About Underquoting?

📌 It is an offence for a real estate agent to underquote a property’s price in advertising or any verbal or written representation to a buyer.

An agent is underquoting if they market the property at a price lower than:

✅ Their reasonable estimate of the likely selling price (stated in the agency agreement).
✅ The seller’s price instructions, if the seller has set a minimum price.

Key Legal Requirements for Selling Agents

✔ Agents must include an estimated selling price in the agency agreement.
✔ This estimate can be a range, but the range cannot exceed 10%.
✔ It is illegal for agents to use misleading pricing phrases, including:
❌ “Offers above”
❌ “Offers over”
❌ Any “+” symbol (e.g., “$1.5M+”)

Agents can choose not to disclose any price at all, but if they do, the stated price must not be lower than the estimated selling price in the agency agreement.

What Happens if Market Conditions Change?

If buyer feedback or market trends suggest a shift in property value, agents must update their estimated selling price regularly—typically on a weekly basis—and amend the agency agreement accordingly.

👉 Important: The agent’s estimated selling price does not have to match the seller’s expectations. Their legal obligation is to provide a reasonable market estimate, not simply reflect the seller’s asking price.

If a seller instructs the agent not to disclose any price, the agent must not provide any price guide at all—whether in advertising, in writing, or verbally.

What This Means for Buyers

❌ Don’t assume the advertised price is what the property will sell for—it could be higher.
✅ Ask the agent directly: “What is the estimated selling price in the agency agreement?”
✅ Watch for price adjustments—if a property lingers on the market, the estimated price may have been revised.
✅ Work with a buyer’s agent who can provide real market insights and protect you from misleading price expectations.

💡 Bottom Line: While underquoting is illegal, it still happens in indirect ways. If you want to buy a home in the Northern Beaches without falling for misleading price guides, working with a trusted Northern Beaches buyer’s agent ensures you get accurate market insights and avoid wasted time

Many

expectations.

Buying property—especially in the competitive Northern Beaches property market—can be overwhelming. The seller’s agent works for the vendor, using their market expertise and negotiation skills to secure the highest price possible. Without professional representation, buyers are often at a disadvantage.

A Northern Beaches buyer’s agent ensures you have an expert in your corner, protecting your interests, avoiding costly mistakes, and maximizing value—whether you’re buying your first home, upgrading, or investing.

What Does a Buyer’s Agent Do?

✔ Understands Your Needs & Market Conditions
A buyer’s agent starts with a comprehensive consultation to understand your budget, lifestyle, and property goals. Their deep knowledge of Northern Beaches suburbs helps them identify the right properties, whether you’re looking in Manly, Dee Why, Freshwater, or Palm Beach.

✔ Finds the Best Properties – Including Off-Market Opportunities
Many of the best homes never hit the open market. A buyer’s agent provides access to off-market properties, giving you exclusive buying opportunities before they’re publicly listed.

✔ Saves You Time & Reduces Stress
House hunting can be exhausting. A buyer’s agent shortlists only the best-matched properties, conducts inspections on your behalf, and ensures you avoid wasting time on unsuitable homes.

✔ Negotiates the Best Deal for You
Whether it’s a private treaty sale or bidding at auction, a buyer’s agent ensures you never overpay. Their experience means they can spot overpriced listings, understand true market value, and negotiate better terms.

✔ Protects You from Costly Mistakes
Without expert guidance, buyers risk overpaying, overlooking hidden defects, or falling victim to emotional decision-making. A buyer’s agent helps you make smart, data-driven choices, ensuring your investment is sound and strategic.

Who Should Use a Buyer’s Agent?

Many assume buyer’s agents are only for luxury purchases, but that’s not the case. A trusted Northern Beaches buyer’s agent helps:

🏡 First-home buyers – navigating the complex process and securing the right home.
📈 Investors – identifying high-growth properties and negotiating better deals.
👨‍👩‍👧‍👦 Families upsizing or downsizing – finding the perfect home in sought-after Northern Beaches suburbs.
💼 Busy professionals – handling the entire buying process to save time and stress.

The Bottom Line

If you’re looking to buy a home in the Northern Beaches, a buyer’s agent ensures you’re informed, protected, and making the best possible decision—with less stress and better financial outcomes.

Want to buy property on the Northern Beaches without the hassle? Contact us today to see how we can help you secure your ideal home with confidence.

Are Off-Market Properties a Good Deal for Buyers?

Off-market properties can offer advantages in certain situations, but they aren’t always the golden ticket they’re made out to be.

Potential Benefits for Buyers:

✔ Less Competition – With fewer buyers aware of the listing, there’s often less pressure to compete.
✔ Quieter Negotiations – No public auctions, no last-minute bidding wars—just a direct negotiation process.
✔ Early Access – Off-market deals provide a first-mover advantage on properties that may later hit the market.

Potential Downsides for Buyers:

❌ Lack of Price Transparency – Without open market comparisons, it’s harder to gauge fair value.
❌ Limited Choice – Only a small percentage of properties are truly off-market, reducing your options.
❌ Selling Agent Control – Some selling agents use off-market listings to create a false sense of urgency, even when the property is likely to be listed publicly.

The Real Story Behind Off-Market Hype

The real estate industry—particularly large franchise agencies—has heavily promoted off-market sales. Why? Because platforms like realestate.com.au have reduced their traditional control over listings, and they’re looking for ways to regain influence over buyers and sellers.

The truth is that genuinely off-market properties (those never intended to go public) make up a very small fraction of the market. Many properties marketed as “off-market” are simply in a pre-market phase and will be publicly listed if they don’t sell privately.

How Should Buyers Approach Off-Market Properties?

The best property search strategy does not rely solely on off-market listings but considers both on-market and off-market opportunities.

💡 The smart approach? Work with a trusted Northern Beaches buyer’s agent who can:
✔ Give you access to legitimate off-market properties while filtering out “fake exclusives.”
✔ Assess the real market value to ensure you don’t overpay in a private deal.
✔ Provide a balanced strategy—exploring both on-market and off-market options so you don’t miss the best property for your needs.

Final Thoughts: Off-Market Properties Are Not a Magic Bullet

While off-market properties can be beneficial in some cases, they aren’t always better deals, nor do they guarantee buyers will find the right home. The best results come from a balanced, fact-based approach—not from chasing exclusivity myths.

If you’re looking to buy property in the Northern Beaches, work with a buyer’s agent who prioritises strategy over hype. Whether you’re searching in Manly, Dee Why, Freshwater, Palm Beach, or other Northern Beaches suburbs, a buyer’s agent ensures you explore every opportunity and make the best decision for your future home.

The Truth About Property Disclosures in NSW

• Many buyers assume that the vendor’s agent must disclose all issues with a property.
• In reality, agents are only required to disclose “material facts”, such as whether the home has been used for a crime or contains major defects they are aware of.
• What this means for buyers: Unless you conduct your own due diligence, you could be buying a home with hidden structural issues, pest infestations, or zoning restrictions.

➡️ How to protect yourself: A buyer’s agent ensures thorough independent due diligence before you commit.

Can You Lose Your Deposit?

• If you sign a contract and later back out, you could lose your entire deposit.
• In some cases, the seller can even sue you for damages beyond the deposit amount.
• What this means for buyers: Always be 100% sure before you sign, and understand your legal rights.

➡️ How to protect yourself: A buyer’s agent ensures your contract conditions protect you from unnecessary risks.

Many buyers’ agents in Sydney operate on a standard 90-day agreement, meaning they will search for your property within that timeframe. If you don’t secure a property within 90 days, some agents stop working with you entirely, while others require an additional retainer or fee to continue the search.

At Sarah Kaye Buyers Agents, we believe this time limit is unnecessary and not in your best interest. Buying the right property in the Northern Beaches property market isn’t about working to an arbitrary deadline—it’s about securing the perfect home at the right price.

That’s why we don’t impose a 90-day limit. Once you engage us, we work for you until we find the right home—whether that takes days, weeks, or months. No extra fees. No hidden charges. Just a dedicated, trusted service.

We start by deeply understanding your needs, ensuring we’re the right fit for you before you commit. From there, we go all in, leveraging our expertise in Northern Beaches suburbs like Manly, Dee Why, Freshwater, and Palm Beach to secure the best possible property.

If you’re serious about buying in the Northern Beaches, you need a trusted buyers’ agent who won’t walk away just because the contract says 90 days. With us, you get commitment, transparency, and an unwavering focus on securing the best home for you.

Can the seller make fake bids at auction?

Yes—many buyers don’t realise that at auction, the seller is legally allowed to bid on their own property through the auctioneer. This is called a vendor bid, and it’s a tactic commonly used to artificially drive up the price, making buyers believe there’s more competition than there actually is.

What does this mean for you as a buyer?

You might think you’re bidding against other buyers, but in reality, you could be bidding against the seller. This can lead to overpaying for a property—a risk that many buyers aren’t aware of when they step into the Northern Beaches property market.

How can you protect yourself?

Working with a trusted Northern Beaches Buyers Agent can help you avoid overpaying at auction. At Sarah Kaye & Co Buyers Agents, we ensure you only pay what the property is truly worth. Whether you’re looking to buy property in Manly, Dee Why, Freshwater, Palm Beach or other Beaches Suburbs, our expert negotiation can help you stay in control and secure your home at the right price.

If you’re considering buying at auction in Sydney’s Northern Beaches suburbs, don’t go in alone—speak with a buyer’s agent first to ensure you’re not caught in a bidding war with the seller!

When Can a Seller Back Out?

• Even after you sign a contract, the seller can pull out before settlement in certain situations, including:
• If you fail to meet a contract condition, such as arranging finance or paying a deposit on time.
• If they invoke a sunset clause (in off-the-plan contracts) to cancel the deal.
• What this means for buyers: Just because you’ve signed doesn’t mean it’s locked in.

➡️ How to protect yourself: Having a buyer’s agent ensures you negotiate fair contract terms and meet all obligations on time.

When Can You Lose Money?

• If you buy at auction, there is NO cooling-off period—your offer is final.
• If you buy through private treaty, you have 5 days to change your mind—but you’ll forfeit 0.25% of the purchase price if you back out.
• What this means for buyers: A cooling-off period isn’t always a safety net.

➡️ How to protect yourself: A buyer’s agent ensures you understand the risks before signing anything.

Can a Developer Change the Property?

• If you buy off-the-plan, the final property may not match what was promised in the marketing materials.
• Developers can make legal changes to the design, size, and even layout without your approval.
• What this means for buyers: Your dream apartment could shrink in size, lose features, or be delayed.

➡️ How to protect yourself: A buyer’s agent ensures your contract limits the developer’s ability to make major changes.

What are the hidden costs of buying an apartment or townhouse?

Many buyers focus on the purchase price of an apartment or townhouse but underestimate the long-term financial risks, particularly when it comes to strata levies and special levies.

Why is this important?

🔹 Strata levies can increase significantly after purchase, particularly in newer buildings where there is no history and investment in some areas may have been artificially low.
🔹 If major building defects or repairs arise, owners may be hit with unexpected special levies—often running into thousands of dollars. This risk is generally higher in new or newly built apartment complexes.
🔹 Failing to research the building’s ‘financial and structural health’ before buying can lead to costly surprises.

How can you protect yourself?

Before you buy, due diligence is critical—and this is where an experienced Northern Beaches Buyers Agent can make all the difference.

At Sarah Kaye & Co Buyers Agents, we thoroughly investigate the building’s financial records, past maintenance history, and upcoming repair costs. Whether you’re looking at apartments in Manly, Dee Why, Freshwater, Palm Beach or other Northern Beach suburbs, we ensure you’re not walking into a financial trap.

If you’re considering buying property on the Northern Beaches, don’t take unnecessary risks. We help you uncover hidden costs before you buy, ensuring you make an informed and financially sound decision.

The Truth About Zoning & Building Restrictions

• Just because you buy a property doesn’t mean you can extend, subdivide, or renovate as planned.
• Councils have strict zoning laws, and heritage overlays or easements can restrict what you do.
• What this means for buyers: If you don’t check the zoning, your dream renovation could be denied.

➡️ How to protect yourself: A buyer’s agent confirms zoning and development restrictions before you buy.

Many buyers assume that home loan pre-approval guarantees financing—but this isn’t the case. A pre-approval is not legally binding, and a lender can still reject your final loan application, leaving you without financing at the last moment.

If you’re looking to buy property in the Northern Beaches, it’s critical to understand why lenders may decline a loan after pre-approval and how to protect yourself.

Why Can a Bank Reject Your Home Loan After Pre-Approval?

Even with pre-approval, your final loan approval can be denied for several reasons:

✔ The property is deemed too high-risk – Some lenders have restrictions on certain property types, locations, or conditions, including properties in specific Northern Beaches suburbs.
✔ Your financial situation has changed – If your income, employment status, debts, or credit score changes, the bank may reassess your borrowing capacity.
✔ The lender’s valuation is lower than the purchase price – If the lender values the property below what you’ve agreed to pay, they may not approve the full loan amount, leaving you to cover the shortfall.

This means that even if you’re pre-approved, you are not guaranteed financing—and this can cause serious issues if you’ve already exchanged contracts.

How to Protect Yourself from Loan Rejection

❌ Don’t assume pre-approval guarantees loan approval—always double-check lender requirements before making an offer.
✅ Work with a buyer’s agent who understands lender restrictions and can help you identify properties that banks are more likely to approve.
✅ Engage a mortgage broker early to ensure your finances align with lender expectations.
✅ Consider a valuation contingency when negotiating your purchase to reduce financial risk.

💡 Bottom Line: Buying a home is one of the biggest financial decisions you’ll make. A trusted Northern Beaches buyer’s agent helps you choose properties that lenders will approve, ensuring you don’t face financing roadblocks at the last minute.