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Agency PracticeAgency AgreementsWAMEDIUM

In Western Australia, what is the consequence if an agent sells a property without a written appointment to act signed by the seller?

Correct Answer

A) The agent is not entitled to commission for that sale under the Act

Section 60 of the Real Estate and Business Agents Act 1978 (WA) says an agent is not entitled to commission unless licensed and appointed in writing, signed by the person the agent acts for, with the property identified and the method of calculating commission set out. Commission received without a valid appointment can be recovered from the agent as a civil debt. The sale between buyer and seller is not affected.

Answer Options
A
The agent is not entitled to commission for that sale under the Act
B
The sale contract is void and the buyer can recover the full deposit paid
C
The commission remains payable, but only at half the rate the parties discussed
D
The seller must pay commission and then lodge a complaint with Consumer Protection

Why This Is the Correct Answer

Section 60 of the Act makes a written, signed appointment a condition of the agent's right to commission, so an agent who acts without one cannot claim it.

Why the Other Options Are Wrong

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Related Topics & Key Terms

Key Terms:

agency disclosurecommission entitlementstatutory obligationsReal Estate and Business Agents ActWestern Australia
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