To hurry a hesitant buyer, a NSW selling agent says another party has already offered more, although no such offer exists. How do the rules of conduct treat this?
Correct Answer
B) It breaches the rule against misleading or deceiving a party in negotiations.
Rule 3 of Schedule 1 to the Property and Stock Agents Regulation 2022 requires an agent to act honestly, fairly and professionally with all parties in a transaction and not to mislead or deceive a party in negotiations or a transaction. Inventing a competing offer deceives the buyer and is a breach, whatever it does for the vendor.
Why This Is the Correct Answer
Inventing an offer misleads the buyer in negotiations, which rule 3 of Schedule 1 prohibits.
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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- → 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?
- → An agent hands a buyer the agency’s expression of interest statement form to sign before accepting her deposit. When must the agent give the buyer a copy of the signed statement?
- → 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?
- → As at October 2026, what is the maximum court penalty for a corporation convicted of dummy bidding at a NSW residential auction?
- → As at October 2026, an individual NSW agent holds client deposits in her personal account instead of the trust account. What maximum court penalty applies to her for mishandling trust money?
- → As at October 2026, what new maximum court penalty applies to a NSW agent or assistant agent who does not meet the continuing professional development requirements?
- → In New South Wales, what must an agent give a client before the client signs an agency agreement for the sale of residential property?
- → 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?
- → 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?
- → 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?
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On a Tuesday evening a selling agent phones the vendor to pass on a new offer. What else does Schedule 2 require the agent to do?
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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?