A property developer is someone whose business, either alone or as part of another business, involves selling, exchanging, or otherwise disposing of property they own. Property developers do act on behalf of a client.
Property development may involve:
- subdividing land for sale
- building and selling houses
- renovating properties for resale
- knocking down and rebuilding houses
Licensing
A property developer does not need a licence, but still has obligations under the Real Estate and Business Agents Act 1978 (REBA Act).
What must property developers do
Register a principal place of business
Developers must register their main place of business with Commissioner for Consumer Protection.
Registrations be:
- in writing using the Register a principal place of business form
- in place for as long as the business operates
- immediately updated if there is a changes of address.
The location must be in WA and will usually be the head office or location where business records are kept.
Record keeping
Developers must keep records of all their real estate transactions including sales, exchanges, purchases or acquisitions of real estate, and collection of rent or other payments for use of the property.
The records must:
- be filed separately
- be kept for at least six years
- include a stamped executed copy of the contract
- include all correspondence relating to the transaction
- include the settlement statement and statements of adjustments of rates and taxes.
Developers do not have to place deposits in a statutory trust account, however, they must take care to ensure deposits are adequately safeguarded. Developers should seek independent legal advice on this.
Supply document copies
Developers must provide copies of any signed offers, acceptances, contracts, or related documents to all signatories of the sale. A signatory is someone who can signs the documents to authorise the transaction. It could be the buyer, seller or other authorised representative such as a lawyer.
Manage the property sales
A developer can sell the property by themselves or through a licensed real estate agent.
An employee of the developer cannot sell the properties unless they hold a current real estate agent licence or sales representative registration.
Use our search tool to find a licensed agent or sales representative.
Developer advertisements
Any advertisements must clearly identify the developer such as showing their:
- trading name
- office phone number
- mobile number
- email, and / or
- website.
Follow Consumer Protection laws
Developers are also required to follow any consumer laws that apply such as the Australian Consumer Law. More information is available from:
- consumer guarantees .
- Unconscionable conduct
- Unfair contract laws
- False or misleading representations
- Misleading or deceptive conduct
Advice and further information
If you need further information about what you must do as a property developer please call our Contact Centre team on 1300 30 40 54.