An agent receives two offers on a property at the same time. What is the correct course of action under their fiduciary duties?
Correct Answer
B) Present both offers to the vendor with full details and recommendations
Agents must present all offers to their principal and provide honest advice about each offer's merits. The decision to accept, reject, or negotiate belongs to the vendor, and the agent must ensure the vendor has all relevant information to make an informed choice.
Why This Is the Correct Answer
Agents must present all offers to their principal and provide honest advice about each offer's merits. The decision to accept, reject, or negotiate belongs to the vendor, and the agent must ensure the vendor has all relevant information to make an informed choice.
About Agency Practice & Law
Agent-principal relationship, fiduciary duties, agency agreements, and professional conduct rules.
Study Tips for Agency Practice
- • Review the key legislation and regulatory frameworks for your state/territory
- • Practice with scenario-based questions to build real-world understanding
- • Focus on understanding concepts rather than rote memorisation
- • Use memory techniques to retain key definitions and thresholds
More Agency Practice Questions
Under Victorian legislation, what is the maximum duration for an exclusive agency agreement for residential property sales?
What is the primary legal relationship between a real estate agent and their client when selling a property?
Which of the following is NOT a fiduciary duty owed by a real estate agent to their principal?
Under most Australian state legislation, what is the minimum period an agency agreement must remain in effect?
Sarah, a licensed real estate agent, discovers that a property she is marketing has structural issues that the vendor has not disclosed. What is her primary obligation?
- → In NSW, what happens to an agency agreement if the principal dies before the property is sold?
- → An agent receives two offers on a property simultaneously - one from their spouse and one from an unrelated party. Both offers are identical. What should the agent do?
- → A real estate agent fails to present an offer to their principal because they believe it is too low and will be rejected. This action represents a breach of which fundamental duty?
- → In Queensland, an agent enters into a dual agency arrangement representing both vendor and purchaser in the same transaction. Which statement is correct regarding disclosure requirements?
- → An agent discovers after settlement that they inadvertently failed to disclose a material fact that was known to them during the sales process. The purchaser suffers financial loss and seeks compensation. What is the most likely legal consequence for the agent?
- → What is the primary legal relationship between a real estate agent and their client when selling a property?
- → Which of the following is NOT a fiduciary duty owed by a real estate agent to their principal?
- → Under NSW legislation, what is the minimum cooling-off period for residential property purchases?
- → What must be included in a valid agency agreement under most Australian state legislation?
- → Sarah, a licensed real estate agent, wants to purchase a property that she has listed for sale. What is her primary legal obligation?
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