An agency's vendor-paid advertising earns it a 10% rebate from a property portal, but the residential agency agreement says nothing about rebates. What does the Act provide?
Correct Answer
A) The agency is not entitled to recover those advertising expenses from the vendor
Section 57 of the Property and Stock Agents Act 2002 says a licensee is not entitled to any expenses in connection with a real estate transaction unless the agency agreement identifies the source of all rebates, discounts or commissions the licensee will or may receive on those expenses and their estimated amount. The section does not apply to commercial land. Here the rebate was undisclosed, so the advertising expenses are not recoverable.
Why This Is the Correct Answer
Undisclosed rebates on expenses strip the licensee of the right to charge those expenses.
Why the Other Options Are Wrong
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