An SA agent receives multiple offers on a property listed for private treaty sale. What is the agent's obligation?
Correct Answer
C) Present all genuine offers to the vendor and let the vendor decide
An agent has a fiduciary duty to present all genuine offers to the vendor, who decides which to accept; the agent cannot withhold offers or decide on the vendor’s behalf. In SA, s 21 of the Land and Business (Sale and Conveyancing) Act 1994 requires each offer to be recorded in writing, signed by the offeror, and a copy given to the vendor within 48 hours.
Why This Is the Correct Answer
The vendor decides which offer to accept, weighing price and conditions, so the agent must present every genuine offer. The sales agency agreement states whether the agent has any authority to accept offers.
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