An SA land agent receives a gift from a service provider they regularly recommend to clients. What is the agent's ethical obligation?
Correct Answer
A) Disclose the benefit to affected clients as required, and keep recommendations in their interest
Under s 24C of the Land and Business (Sale and Conveyancing) Act 1994 (SA), an agent must disclose to the client the nature, source and amount or value of any benefit received from a third party to whom the agent refers the client for services connected with the sale or purchase. In residential sales, s 24D also requires undisclosed benefits of that kind to be paid over to the client. Recommendations must still be made in the client's interest.
Why This Is the Correct Answer
Section 24C of the Land and Business (Sale and Conveyancing) Act 1994 (SA) requires the agent to disclose to the client benefits received from third parties it refers the client to. The agent must also keep recommending in the client's interest, not the supplier's.
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