A branch manager finds that a salesperson has not passed on the auction bidding record that the vendor client asked for. What should the branch manager do?
Correct Answer
B) Ensure the record is provided to the vendor and address the salesperson's breach
A branch manager supervises salespeople under section 50 of the Real Estate Agents Act 2008. A vendor who asks for the bidding record is entitled to be kept informed (Rule 9.3 of the Client Care Rules), so the manager should get the record to the vendor and then deal with the salesperson's lapse.
Why This Is the Correct Answer
The manager supervises under section 50 of the Real Estate Agents Act 2008. The first step is to put the client right by getting the vendor the record, because Rule 9.3 requires clients to be kept well informed; the second is to address the salesperson's lapse so it does not happen again.
Why the Other Options Are Wrong
Option A: Leave it, because the property sold at auction and the vendor suffered no loss
A successful sale does not cure the failure: the vendor is still entitled to be kept informed (Rule 9.3), and the lapse still needs supervising.
Option C: Report the salesperson to the Police, since withholding a record is a criminal offence
Withholding a record from a client is a professional-conduct failure, not ordinarily a crime, so the Police are not the right first step.
Option D: Move the salesperson to another branch so the vendor no longer deals with them
A transfer leaves the vendor without the record and the salesperson's conduct unaddressed; it moves the problem rather than fixing it.
Deep Analysis of This Agency Practice Question
Supervision is active: when a manager learns that a client has been let down, the priority is to repair the client's position and then correct the licensee. A good sale price does not excuse a failure to keep the client informed, and moving or punishing the salesperson without fixing the client's position misses the point of the supervisory duty.
Background Knowledge for Agency Practice
Section 50 of the Real Estate Agents Act 2008 requires every salesperson to be properly supervised and managed by an agent or branch manager, meaning enough direction and control to keep the work competent and compliant. Rule 9.3 of the Professional Conduct and Client Care Rules 2012 requires licensees to communicate regularly and keep the client well informed of matters relevant to the client's interest.
Memory Technique
Remember CARE when dealing with compliance breaches: Correct the immediate issue, Address the breach with staff, Report if necessary (internally first), Educate to prevent recurrence. Like a doctor who must CARE for patients, managers must CARE for compliance.
When you see questions about supervisory responsibilities or compliance breaches, think CARE. The manager must always Correct the immediate problem first, then Address it with the staff member to ensure learning and prevent future issues.
Exam Tip for Agency Practice
In supervision scenarios, fix the client's position first, then deal with the licensee's conduct; a good outcome never excuses a breach.
Real World Application in Agency Practice
After an auction, a vendor emails the office asking to see the bidding record. The salesperson has not replied. The branch manager retrieves the record, sends it to the vendor the same day, and then meets the salesperson to go over the agency's procedure for client requests, noting the discussion on file.
Common Mistakes to Avoid on Agency Practice Questions
- •Thinking successful outcomes excuse compliance failures
- •Believing police involvement is needed for regulatory breaches
- •Assuming transfer solves the compliance problem
Related Topics & Key Terms
Key Terms:
More Agency Practice Questions
A real estate agent receives two offers on a property at the same time. What is their primary obligation?
Which of the following situations would create a conflict of interest requiring disclosure by a real estate licensee?
Sarah is a licensed salesperson working for ABC Real Estate. When showing a property to buyers, who does she primarily represent?
Under the Real Estate Agents Act 2008, what is the primary duty that a real estate agent owes to their client?
Which licence allows a person to carry out real estate agency work for an agent, but only under supervision?
- → Under section 126 of the Real Estate Agents Act 2008, what must happen after the client signs an agency agreement for the agent to be entitled to commission?
- → A licensed agent discovers that their salesperson has been providing advice about tax implications of a property investment without appropriate qualifications. What is the agent's responsibility?
- → An agency agreement contains a clause stating that the agent's commission is payable even if the property is sold by the vendor directly to a buyer introduced by the agent during the agency period, but the sale settles after the agency expires. Is this clause enforceable?
- → What must a real estate agent disclose to a potential purchaser when showing a property?
- → Under a sole agency agreement, when is the vendor still liable to pay commission to the agent?
- → Sarah holds a salesperson's licence and works for ABC Real Estate. When presenting an offer to a vendor, who is legally responsible for ensuring all disclosure obligations are met?
- → A real estate agent discovers that a property has a leaky roof after the agency agreement is signed but before any offers are received. What is the agent's obligation?
- → Which of the following allows an agent to end an agency agreement before its expiry date?
- → Under the Real Estate Agents Act 2008, what is the primary fiduciary duty that a real estate agent owes to their client?
- → What must a licensee do when they become aware of a material defect in a property they are marketing?
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