EstatePass
Agency PracticeProfessional ConductMEDIUM

A buyer asks an agent about potential issues with the property's drainage. The agent knows there have been problems but says nothing. This represents:

Correct Answer

A) A breach of the agent's duty to deal honestly with buyers as well as the vendor

While agents primarily represent vendors, they have a duty under consumer protection laws to act honestly and fairly toward all parties. Deliberately concealing known material defects constitutes misleading conduct and can result in professional sanctions and legal liability.

Answer Options
A
A breach of the agent's duty to deal honestly with buyers as well as the vendor
B
Acceptable, because a vendor's agent owes its duties to the vendor and not to buyers
C
Acceptable, provided the agent never makes a positive false statement about the drainage
D
Only a problem for the vendor, since sellers rather than agents answer for undisclosed defects

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Agency Practice Question

Sign up free to unlock full analysis

Background Knowledge for Agency Practice

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Agency Practice

Sign up free to unlock full analysis

Common Mistakes to Avoid on Agency Practice Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

misleading conductmaterial defectsduty of honestyAustralian Consumer Lawprofessional obligations
Was this explanation helpful?

More Agency Practice Questions

People Also Study

Practice More AU Questions

Access 1,100+ Australian real estate practice questions and ace your Certificate IV.

Browse All AU Questions