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?
Correct Answer
C) The agent must not recommend the conveyancer who is acting for the vendor.
Rule 13 of Schedule 1 says an agent must not recommend a solicitor or licensed conveyancer who the agent knows acts, or will act, for the other party. Only if no other is available (for example in a remote location) may the agent recommend them, and must then tell the person they act for the other party.
Why This Is the Correct Answer
Other conveyancers are available, so the rule 13 exception does not apply and the agent must not recommend the vendor's conveyancer.
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
Exam Tip for Ethics Compliance
Common Mistakes to Avoid on Ethics Compliance Questions
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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?
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