A licensed agent is selling an investment unit that she owns herself, using her own agency. What must her advertisements for the unit disclose?
Correct Answer
D) That she has an interest in the property as its owner
Section 50(2) and (3) of the Property and Stock Agents Act 2002 prohibit a licensee who has a relevant interest in a sale from publishing an advertisement for it unless the interest is disclosed. A relevant interest includes owning the property, a director of the licensee corporation owning it, or the licensee being a director of an owner corporation.
Why This Is the Correct Answer
Owning the property is a relevant interest that must be disclosed in the advertisement.
Why the Other Options Are Wrong
Background Knowledge for Property Marketing
Exam Tip for Property Marketing
Common Mistakes to Avoid on Property Marketing Questions
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- → An agent in NSW quotes a property at $800,000-$850,000 but sets the reserve at $900,000. Three weeks later, the agent receives feedback that most buyers are interested at $820,000-$840,000. What should the agent do to comply with underquoting legislation?
- → In NSW, a buyer signs a private treaty contract for an established home and changes their mind two days later. When can they withdraw, and at what cost?
- → An agent in NSW receives an offer on a property listed for private treaty sale. The agent knows of another buyer who previously expressed strong interest but hasn't yet made a formal offer. What is the agent's legal obligation regarding disclosure?
- → In NSW, if a property is passed in at auction, what are the vendor's immediate options?
- → In NSW, the auctioneer takes a bid on the vendor's behalf without announcing it as a vendor bid, and the property is then knocked down to a genuine bidder. What is the legal position?
- → On auction morning a NSW vendor tells the auctioneer she will text her reserve price once she sees how bidding goes. What do the auction conditions require?
- → A married couple intend to bid together at a NSW residential auction to buy the house jointly. What registration is required?
- → Before a NSW residential auction, the vendor asks the auctioneer to make two vendor bids if bidding stalls, both announced as vendor bids. What must the auctioneer tell the vendor?
- → A buyer arrives to register at a NSW residential auction with only her overseas passport, which does not show her address. What will allow her to register?
- → Two brothers co-own a NSW house being sold at auction, and one brother wants to bid to buy out the other. What must happen for the co-owner to make more than one bid?
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Previous Question
A house sits two streets outside the boundary of a sought-after Sydney suburb. The vendor wants the listing to name that suburb, as buyers search for it. What may the agent do?
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A licensee who trades under a registered business name places a newspaper advertisement for a listing. Under the Property and Stock Agents Act 2002, what must the ad include?