At an open home an agent tells a buyer that an apartment 'is a great investment that will suit you'. The agent will receive a bonus from the developer on sale. What must the agent give the buyer under the Regulation?
Correct Answer
C) A general-advice warning and disclosure of conflicts such as the developer bonus.
Section 11 of the Property and Stock Agents Regulation 2022 (made under s 46 of the Act) requires a real estate agent giving financial or investment advice connected with a sale to warn that it is general advice, to warn a buyer to assess the purchase for themselves or with a licensed financial adviser, and to disclose conflicts such as commissions or referral fees.
Why This Is the Correct Answer
Section 11 of the Regulation requires the general-advice warnings and disclosure of the agent's conflicts.
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
Exam Tip for Ethics Compliance
Common Mistakes to Avoid on Ethics Compliance Questions
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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?
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