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?
Correct Answer
A) Decline to reveal it, because it is the vendor's confidential information.
Rule 7 of Schedule 1 says an agent must not use or disclose confidential information obtained while acting for a client unless the client authorises it or the law permits or compels it. The vendor's lowest acceptable price is confidential, and disclosing it would also be against her interests under rule 6.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
Common Mistakes to Avoid on Ethics Compliance Questions
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?
- → 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?
- → An agent repeats the vendor's claim that an extension was council-approved. It was not. The agent had seen council letters questioning the approval but did not follow them up. Can the agent rely on the s 52 defence?
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 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?
Next Question
A buyer's agent is bidding at auction for a client whose maximum is fixed. Bidding passes that figure. The client, reached by phone, says 'go a bit higher' but gives nothing in writing. What may the agent do?