The Fidelity Guarantee Account established under the Real Estate and Business Agents Act 1978 (WA) serves what purpose?
Correct Answer
B) To compensate persons who suffer financial loss due to the defalcation of an agent or sales representative
The Fidelity Guarantee Account is funded from interest earned on agents' trust accounts and provides compensation to persons who suffer pecuniary loss due to the defalcation (misappropriation of trust funds) by a licensed agent or registered sales representative in WA.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Agency Practice Question
Background Knowledge for Agency Practice
Real World Application in Agency Practice
Common Mistakes to Avoid on Agency Practice Questions
Related Topics & Key Terms
Key Terms:
More Agency Practice Questions
Under Victorian legislation, what is the maximum duration for an exclusive agency agreement for residential property sales?
What is the primary legal relationship between a real estate agent and their client when selling a property?
Which of the following is NOT a fiduciary duty owed by a real estate agent to their principal?
Under most Australian state legislation, what is the minimum period an agency agreement must remain in effect?
Sarah, a licensed real estate agent, discovers that a property she is marketing has structural issues that the vendor has not disclosed. What is her primary obligation?
- → In NSW, what happens to an agency agreement if the principal dies before the property is sold?
- → An agent receives two offers on a property simultaneously - one from their spouse and one from an unrelated party. Both offers are identical. What should the agent do?
- → A real estate agent fails to present an offer to their principal because they believe it is too low and will be rejected. This action represents a breach of which fundamental duty?
- → In Queensland, an agent enters into a dual agency arrangement representing both vendor and purchaser in the same transaction. Which statement is correct regarding disclosure requirements?
- → An agent discovers after settlement that they inadvertently failed to disclose a material fact that was known to them during the sales process. The purchaser suffers financial loss and seeks compensation. What is the most likely legal consequence for the agent?
- → What is the primary legal relationship between a real estate agent and their client when selling a property?
- → Which of the following is NOT a fiduciary duty owed by a real estate agent to their principal?
- → Under NSW legislation, what is the minimum cooling-off period for residential property purchases?
- → What must be included in a valid agency agreement under most Australian state legislation?
- → Sarah, a licensed real estate agent, wants to purchase a property that she has listed for sale. What is her primary legal obligation?
People Also Study
Property Law & Legislation
176 questions
Contracts & Conveyancing
176 questions
Property Marketing & Sales
146 questions
Property Management
146 questions