A vendor instructs an agent to pass in their property at auction if bidding doesn't reach $750,000, but the highest bid reaches $745,000. The agent sells the property for $745,000 immediately after the auction. What is the most serious issue?
Correct Answer
A) The agent acted outside their authority by selling below the vendor's minimum.
The agent acted outside their authority by selling below the vendor's clear instruction of $750,000 minimum. This breaches the agency relationship and could result in the agent being liable for the difference and potentially facing disciplinary action.
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Previous Question
A real estate agent updates the price guide for an auction property three times during the campaign, each time increasing it based on buyer feedback. What compliance issue might this create under current legislation?
Next Question
A vendor's reserve is $800,000 and the agent's advertised guide is '$800,000 - $850,000'. Three weeks in, the agent has received several genuine written offers between $880,000 and $900,000. What should the agent do?