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
An agent buying a property she is engaged to sell has a direct conflict with her principal. Every state requires, at a minimum, full disclosure and the vendor's written consent before the purchase, with further state-specific conditions.
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