Sarah, a licensed agent, wants to buy a property she has listed for sale. Which step reflects the rule shared by every state, although each state sets its own conditions?
Correct Answer
A) Fully disclose her interest to the vendor and obtain the vendor's written consent first
Every state treats an agent buying a property they are engaged to sell as a conflict of interest. The shared rule is full disclosure of the agent's interest and the vendor's written consent before the agent buys, but the detailed conditions are set by each state: NSW restricts licensees obtaining a beneficial interest in section 49 of the Property and Stock Agents Act 2002, and Victoria has its own restriction in the Estate Agents Act 1980. Learn the form and conditions your state requires.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Practice Question
Background Knowledge for Agency Practice
Real World Application in Agency Practice
Common Mistakes to Avoid on Agency Practice Questions
Related Topics & Key Terms
Key Terms:
More Agency Practice Questions
In NSW, what happens to an agency agreement if the principal dies before the property is sold?
Under NSW law, what is the standard cooling-off period for a residential property purchase?
In NSW, what is the maximum commission an agent may charge on a residential property sale?
A NSW homeowner signs an exclusive agency agreement to sell her house at 3 pm on a Friday. There is no public holiday that weekend. When does her statutory cooling-off period for the agency agreement end?
An agent records the estimated selling price in a NSW residential sales agency agreement as a range with a lower figure of $900,000 (an invented example). What is the highest upper figure the range may lawfully show?
- → A buyer paid an expression of interest deposit on a NSW house, but the vendor then exchanged contracts with a different buyer. What is the first buyer entitled to?
- → Under the certificate of registration pathway, how long must a person hold an assistant real estate agent certificate before becoming eligible for an unrestricted class 2 licence?
- → Under the Property and Stock Agents Act 2002 (NSW), what must an agency agreement for the sale of residential property include?
- → Under the Property and Stock Agents Act 2002 (NSW), what must a residential sales agency agreement contain for the agent to rely on it?
- → In NSW, if a real estate agent wants to purchase a property they have been engaged to sell, what must they do under the Property and Stock Agents Act?
- → Under NSW legislation, what is the minimum period for which an exclusive agency agreement can be entered into?
- → Under the Property and Stock Agents Act 2002 (NSW), what must be included in a written agency agreement for the sale of residential property?
- → In NSW, an agent does not give the vendor a copy of the signed agency agreement within 48 hours of the vendor signing it. What is the main consequence under the Property and Stock Agents Act 2002?
- → Which document must be provided to a vendor before an agent can lawfully act on their behalf in NSW?
- → At 9 am on a Monday a Class 2 agent emails a vendor the unsigned residential sales agency agreement and the approved guide. At 4 pm that same Monday the vendor signs the agreement and the Fair Trading waiver form so marketing can start that night. What is the position?
People Also Study
Property Law & Legislation
110 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Property Management
126 questions
Related Study Resources
Previous Question
Sarah, a licensed agent, discovers significant structural damage during a property inspection that the vendor hasn't disclosed. What should she do to comply with her professional obligations?
Next Question
Sarah, a licensed real estate agent, is selling her own investment property. Under most Australian state legislation, what disclosure requirement must she fulfill?