At an open home, a buyer asks the selling agent whether the roof was replaced when the house was renovated. The agent does not know. What is the appropriate response?
Correct Answer
C) Get the answer from the vendor or refer the buyer to an expert
NSW Fair Trading guidance on misrepresentation states that if a buyer asks a question and the agent knows the answer, the agent must answer frankly and fully. If the agent does not know, they should obtain the information from the vendor or refer the person to their conveyancer or a relevant expert. An agent is generally liable for a misrepresentation whether or not they knew it was false.
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- → 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?
- → A licensee in charge learns that one of the sales agents routinely leaves the estimated selling price out of agency agreements. Under Schedule 1, what is the licensee in charge's obligation?
- → A buyer asks the agent selling a house to also act as her buyer's agent for that same house, for a separate fee. What does the Property and Stock Agents Act 2002 say?
- → After a NSW residential auction where the property was passed in, the vendor asks the agent for a copy of the Bidders Record so he can phone the underbidders himself. How should the agent respond?
- → A buyer asks the vendor's agent for the lowest price the vendor has said she would accept. The vendor has not authorised the agent to reveal it. What should the agent do?
- → To win a listing on her preferred terms, an agent tells the owner that NSW law makes a 90-day exclusive period compulsory in every sale listing. It does not. What has she done?
- → A buyer asks the selling agent to recommend a conveyancer. The agent knows a local conveyancer is already acting for the vendor, and other conveyancers practise in the area. What does Schedule 1 require?
- → After settlement, a delighted vendor drops off a case of good wine for her selling agent to thank him for his work on the sale. May he keep it under the gifts provision, s 53F?
- → Fair Trading imposes a monetary penalty and a licence condition on an agent after a disciplinary process. The agent thinks the decision is wrong. What is the review pathway?
- → An agent repeats the vendor's claim that an extension was council-approved. It was not. The agent had seen council letters questioning the approval but did not follow them up. Can the agent rely on the s 52 defence?
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