At general law, an agent who proposes to act for both the vendor and the buyer in the same sale must at least do what? (Some states' conduct rules restrict this further.)
Correct Answer
B) Obtain both parties' fully informed consent and manage the conflict
An agent is a fiduciary. At general law, a fiduciary may act for two parties with conflicting interests only with the fully informed consent of both, and must then manage the conflict, for example by not using one party's confidential information for the other. State conduct rules can go further and restrict an agent acting for both sides, so agents must check their own state's rules.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Ethics Compliance Question
More Ethics Compliance Questions
NSW Fair Trading serves a notice to show cause on an agent over alleged breaches of the rules of conduct. How long must the notice give the agent to respond?
An agent tells an elderly owner she must sign an agency agreement tonight or lose every buyer, then phones her repeatedly after 10 pm when she hesitates. Which Schedule 1 rule is most clearly breached?
An agent hands a buyer the agency’s expression of interest statement form to sign before accepting her deposit. When must the agent give the buyer a copy of the signed statement?
An assistant agent's sister wants to buy a house that the assistant's employing agency has been retained to sell. How does s 49 of the Property and Stock Agents Act 2002 apply?
In New South Wales, what must an agent give a client before the client signs an agency agreement for the sale of residential property?
- → A vendor has instructed her agent in writing not to pass on any offers below $850,000 (invented). Before exchange, a buyer makes a genuine written offer of $800,000. What does NSW law require of the agent?
- → At an open home, a buyer asks the selling agent whether the roof was replaced when the house was renovated. The agent does not know. What is the appropriate response?
- → A licensee in charge learns that one of the sales agents routinely leaves the estimated selling price out of agency agreements. Under Schedule 1, what is the licensee in charge's obligation?
- → A buyer asks the agent selling a house to also act as her buyer's agent for that same house, for a separate fee. What does the Property and Stock Agents Act 2002 say?
- → After a NSW residential auction where the property was passed in, the vendor asks the agent for a copy of the Bidders Record so he can phone the underbidders himself. How should the agent respond?
- → A buyer asks the vendor's agent for the lowest price the vendor has said she would accept. The vendor has not authorised the agent to reveal it. What should the agent do?
- → To win a listing on her preferred terms, an agent tells the owner that NSW law makes a 90-day exclusive period compulsory in every sale listing. It does not. What has she done?
- → A buyer asks the selling agent to recommend a conveyancer. The agent knows a local conveyancer is already acting for the vendor, and other conveyancers practise in the area. What does Schedule 1 require?
- → After settlement, a delighted vendor drops off a case of good wine for her selling agent to thank him for his work on the sale. May he keep it under the gifts provision, s 53F?
- → Fair Trading imposes a monetary penalty and a licence condition on an agent after a disciplinary process. The agent thinks the decision is wrong. What is the review pathway?
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Related Study Resources
Previous Question
A real estate agent is approached by a client who wants to buy several high-value properties using physical cash payments of just under $10,000 each, withdrawn from different bank accounts. The client refuses to provide identification beyond the minimum required. What is the most appropriate response under AML/CTF obligations?
Next Question
A real estate agent receives a cash deposit of $15,000 from a buyer who appears nervous and provides inconsistent information about their identity. What should the agent do?