An assistant agent's sister wants to buy a house that the assistant's employing agency has been retained to sell. How does s 49 of the Property and Stock Agents Act 2002 apply?
Correct Answer
B) It applies, so the vendor's prior written consent on the approved form is needed.
Section 49 prevents a real estate agent retained to sell property, and any assistant agent employed by that agent, from obtaining a beneficial interest in it. Under s 49(4) a close relative obtaining an interest counts, and s 49(6) lists siblings. The purchase can proceed only if the vendor consents beforehand on the approved form, the person acts fairly, and no commission is paid unless the vendor also consents to that.
Why This Is the Correct Answer
A sibling is a close relative and assistant agents are covered, so s 49 applies and prior written consent is required.
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
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An agent tells an elderly owner she must sign an agency agreement tonight or lose every buyer, then phones her repeatedly after 10 pm when she hesitates. Which Schedule 1 rule is most clearly breached?
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