An estate agent in Victoria fails to disclose a material conflict of interest to both parties in a transaction where the agent acts for both vendor and purchaser. Under the Estate Agents Act 1980, what is the most severe potential consequence?
Correct Answer
C) Suspension or cancellation of the agent's licence and possible criminal prosecution.
Failing to disclose a material conflict of interest while acting for both vendor and purchaser is a serious breach of an agent's duties. Disciplinary proceedings can end in suspension or cancellation of the licence, the agent may be prosecuted and fined, and the agent can be civilly liable for losses caused.
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