A Townsville agent appointed to sell a house wants to buy it herself. When must she obtain the seller's written acknowledgement and consent?
Correct Answer
D) Before a contract for the sale of the property is entered into
Section 155 of the Property Occupations Act 2014 (Qld) makes it an offence for an agent, or a salesperson employed by the agent, to obtain a beneficial interest in property the client has placed with the agent for sale. It is not an offence if, before the contract is entered into, the agent obtains the client's written acknowledgement in the approved form that they know of and consent to the interest, the agent acts fairly and honestly, and the client ends up substantially as well off as on a sale at fair market value.
Why This Is the Correct Answer
The Property Occupations Act 2014 (Qld) lets an agent obtain an interest in a property they are selling only if, before a contract is entered into, the seller gives written acknowledgement in the approved form that they know about and consent to it. The agent must also act fairly and honestly and leave the seller no worse off than a fair market sale.
Why the Other Options Are Wrong
Deep Analysis of This Agency Practice Question
Background Knowledge for Agency Practice
Memory Technique
Exam Tip 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
In NSW, what happens to an agency agreement if the principal dies before the property is sold?
Priya holds an unrestricted class 2 real estate licence and wants to open her own agency as a sole trader. What does the Property and Stock Agents Act 2002 require?
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?
Under NSW law, what is the standard cooling-off period for a residential property purchase?
In NSW, what is the maximum commission an agent may charge on a residential property sale?
- → An assistant agent completes 5 units of CPP41419 in one CPD year, 2 more than required. What happens to the extra 2 units?
- → A homeowner signs a sole agency agreement, then sells the house to a neighbour she found herself, with no agent involved. Is commission payable under the sole agency?
- → A NSW homeowner signs an exclusive agency agreement to sell her house at 3 pm on a Friday. There is no public holiday that weekend. When does her statutory cooling-off period for the agency agreement end?
- → An agent records the estimated selling price in a NSW residential sales agency agreement as a range with a lower figure of $900,000 (an invented example). What is the highest upper figure the range may lawfully show?
- → A buyer paid an expression of interest deposit on a NSW house, but the vendor then exchanged contracts with a different buyer. What is the first buyer entitled to?
- → Under the certificate of registration pathway, how long must a person hold an assistant real estate agent certificate before becoming eligible for an unrestricted class 2 licence?
- → Since the June 2026 changes to the Property and Stock Agents Act 2002, who can approve standard forms of agency agreement for use in NSW?
- → Under the Property and Stock Agents Act 2002 (NSW), what must a residential sales agency agreement contain for the agent to rely on it?
- → In NSW, if a real estate agent wants to purchase a property they have been engaged to sell, what must they do under the Property and Stock Agents Act?
- → Under NSW legislation, what is the minimum period for which an exclusive agency agreement can be entered into?
People Also Study
Property Law & Legislation
110 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Property Management
126 questions