An agent records the estimated selling price in a NSW residential sales agency agreement as a range with a lower figure of $900,000 (an invented example). What is the highest upper figure the range may lawfully show?
Correct Answer
D) $990,000
The agency agreement must include the agent's estimated selling price, which may be a single price or a range. If a range is used, the highest price cannot exceed the lowest price by more than 10%. With a lower figure of $900,000, 10% is $90,000, so the upper figure cannot exceed $990,000.
Why This Is the Correct Answer
$900,000 plus 10% is $990,000, the maximum top of a compliant range.
Why the Other Options Are Wrong
Background Knowledge for Agency Practice
Exam Tip for Agency Practice
Common Mistakes to Avoid on Agency Practice Questions
More Agency Practice Questions
In NSW, what happens to an agency agreement if the principal dies before the property is sold?
Priya holds an unrestricted class 2 real estate licence and wants to open her own agency as a sole trader. What does the Property and Stock Agents Act 2002 require?
Buyer Ahmed has paid an expression of interest deposit with an offer of $1.2 million (invented). Before exchange, another buyer submits a higher offer. Apart from passing the new offer to the vendor, what must the selling agent do regarding Ahmed?
Under NSW law, what is the standard cooling-off period for a residential property purchase?
In NSW, what is the maximum commission an agent may charge on a residential property sale?
- → An assistant agent completes 5 units of CPP41419 in one CPD year, 2 more than required. What happens to the extra 2 units?
- → A homeowner signs a sole agency agreement, then sells the house to a neighbour she found herself, with no agent involved. Is commission payable under the sole agency?
- → A NSW homeowner signs an exclusive agency agreement to sell her house at 3 pm on a Friday. There is no public holiday that weekend. When does her statutory cooling-off period for the agency agreement end?
- → A buyer paid an expression of interest deposit on a NSW house, but the vendor then exchanged contracts with a different buyer. What is the first buyer entitled to?
- → Under the certificate of registration pathway, how long must a person hold an assistant real estate agent certificate before becoming eligible for an unrestricted class 2 licence?
- → Since the June 2026 changes to the Property and Stock Agents Act 2002, who can approve standard forms of agency agreement for use in NSW?
- → Under the Property and Stock Agents Act 2002 (NSW), what must a residential sales agency agreement contain for the agent to rely on it?
- → In NSW, if a real estate agent wants to purchase a property they have been engaged to sell, what must they do under the Property and Stock Agents Act?
- → Under NSW legislation, what is the minimum period for which an exclusive agency agreement can be entered into?
- → Under the Property and Stock Agents Act 2002 (NSW), what must be included in a written agency agreement for the sale of residential property?
People Also Study
Property Law & Legislation
110 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Property Management
126 questions
Related Study Resources
Previous Question
An agent drafts a 120-day exclusive agency agreement for a residential sale. What termination right must the agreement give the vendor?
Next Question
An assistant agent (certificate of registration holder) in a NSW property management business meets an investor, completes the inspection report and signs a management agency agreement with the investor on the agency's behalf. What is the correct position?