An SA agent advertises a property below the estimate in his sales agency agreement, in breach of the price rules. Besides a penalty, what else follows under the Land and Business (Sale and Conveyancing) Act 1994?
Correct Answer
C) He cannot demand or receive commission or expenses for the sale
Penalties apply to SA agents who breach the price advertising rules, and under the Land and Business (Sale and Conveyancing) Act 1994 (SA) the agent also cannot demand or receive commission or expenses in those cases. Consumer and Business Services describes underquoting as advertising a property below what the seller will accept to attract more buyers.
Why This Is the Correct Answer
The Act stops an agent who breaches the rules from demanding or receiving commission or expenses.
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
Exam Tip for Ethics Compliance
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