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?
Correct Answer
D) The agent need not pass it on, because of the written instruction
NSW Fair Trading guidance states that the law requires agents to inform the vendor of all offers up until exchange of contracts unless the vendor has instructed otherwise in writing, for example an instruction not to be advised of offers under a certain price. A genuine offer below that written threshold therefore does not have to be passed on. Without such a written instruction, the agent must convey every offer until exchange.
Why This Is the Correct Answer
A written vendor instruction not to receive offers below a set price displaces the general duty for those offers.
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 vendor has told her agent in writing not to pass on any offer below a stated figure. A buyer then makes an offer below that figure. What must the agent do?