What ethical obligations does a land agent have when a buyer makes an offer that the agent knows the vendor is likely to reject?
Correct Answer
C) Present every genuine offer to the vendor, who decides whether to accept it
An agent has a fiduciary duty to present all genuine offers to the vendor promptly. It is not the agent's role to filter offers; the decision to accept or reject belongs solely to the vendor.
Why This Is the Correct Answer
The decision belongs to the vendor. In SA, s 21 of the Land and Business (Sale and Conveyancing) Act 1994 requires every offer to be recorded in writing, signed by the buyer, and a copy given to the vendor within 48 hours, whatever the agent thinks of it.
Why the Other Options Are Wrong
Deep Analysis of This Ethics Compliance Question
Background Knowledge for Ethics Compliance
Memory Technique
Exam Tip for Ethics Compliance
Real World Application in Ethics Compliance
Common Mistakes to Avoid on Ethics Compliance Questions
Related Topics & Key Terms
Key Terms:
More Ethics Compliance Questions
NSW Fair Trading serves a notice to show cause on an agent over alleged breaches of the rules of conduct. How long must the notice give the agent to respond?
NSW Fair Trading suspects an agent's recorded estimated selling prices are unrealistically low. Since 29 June 2026, which step can it take about those estimates?
A NSW agent's marketing emails recommend a mortgage broker as 'independent', but the broker pays the agent a fee for each referral. What do the rules of conduct require?
A licensee in charge learns that one of the sales agents routinely leaves the estimated selling price out of agency agreements. Under Schedule 1, what is the licensee in charge's obligation?
A NSW property manager arranges a 12-month residential lease for a landlord. Is this an AUSTRAC real estate designated service?
- → 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?
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions