A licensed estate agent in Victoria becomes aware that an agent's representative employed at their agency has been accepting secret commissions from a developer in exchange for steering buyers toward the developer's properties. Under the Estate Agents Act 1980, what is the licensed agent's obligation and potential liability?
Correct Answer
A) The licensed agent must report the conduct and may face action against their own licence.
Under the Estate Agents Act 1980, a licensed estate agent is responsible for the conduct of their agent's representatives. Accepting secret commissions is a criminal offence. The licensed agent must take immediate action to address the misconduct, report it to the relevant authorities, and may face vicarious liability. Failure to supervise and act can result in disciplinary action against the licensed agent's own licence.
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