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?
Correct Answer
C) Promptly tell Ahmed that a subsequent offer has been made
Under the Property and Stock Agents Regulation 2022 rules on expression of interest deposits, the agent must promptly inform the person who paid the deposit if a subsequent offer is made to purchase the property. The vendor's agent must also advise that person that they have the right to make further offers until contracts are exchanged. The agent still acts for the vendor and must not disclose confidential details of the rival offer.
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At 9 am on a Monday a Class 2 agent emails a vendor the unsigned residential sales agency agreement and the approved guide. At 4 pm that same Monday the vendor signs the agreement and the Fair Trading waiver form so marketing can start that night. What is the position?
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