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?
Correct Answer
B) Tell the buyer that the offer will not be submitted to the vendor.
Schedule 2, Part 1, rule 5 of the Regulation requires the vendor's agent to tell the vendor of all offers as soon as practicable until exchange, unless the vendor has given written instructions to the contrary. If the agent will not pass an offer on, rule 5(2) requires the agent to tell the person who made it that it will not be submitted.
Why This Is the Correct Answer
With written instructions in place the offer need not be passed on, but rule 5(2) requires the buyer to be told.
Why the Other Options Are Wrong
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Previous Question
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?
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