A salesperson working under supervision can perform which of the following activities?
Correct Answer
C) Show properties and give buyers information, under proper supervision
Salespersons can carry out real estate agency work including showing properties and providing information to clients, but must do so under the supervision of a licensed agent or branch manager. They cannot make independent decisions about commission rates or sign agency agreements without proper authority.
Why This Is the Correct Answer
A salesperson carries out real estate agency work such as viewings and giving buyers information, but section 50 requires them to be properly supervised and managed by an agent or branch manager while doing so.
Why the Other Options Are Wrong
Option A: Agree to changes in the commission rate with a vendor on their own authority
Commission terms are part of the agency's agreement with the client; varying them needs the agent's authority, not a salesperson's own decision.
Option B: Hold a buyer's deposit in their own bank account until settlement is completed
Money received in a transaction must be paid into the agent's trust account (s 122); a personal account is never acceptable.
Option D: Set up their own real estate business while keeping their salesperson licence
Only an agent's licence allows a person to carry on business as a real estate agent; a salesperson must work for an agent.
Deep Analysis of This Agency Practice Question
The line is between agency work done on the agent's behalf under supervision, which salespeople do every day, and things that belong to the agent: the terms of the agent's contracts, client money that must go through the trust account, and running a real estate business. Viewings and giving information are core salesperson work, provided supervision is real.
Background Knowledge for Agency Practice
Under the Real Estate Agents Act 2008, salespersons must work under supervision of licensed agents or branch managers. The Act establishes clear role boundaries: salespersons can perform client-facing activities like property showings and information provision, but cannot make independent business decisions. Supervision ensures consumer protection and maintains professional standards. The licensing framework creates a hierarchy where agents have full authority while salespersons operate under delegated authority. This structure protects consumers while allowing salespersons to gain experience and develop skills under qualified oversight.
Memory Technique
Remember SHOW: Salespersons can Show properties, Handle information provision, Operate under supervision, Work with clients - but cannot make independent Weighty decisions like commission rates or sign agreements.
When you see supervision questions, think SHOW. If the activity involves showing, handling information, or working with clients under oversight, it's likely permitted. If it involves weighty independent decisions, it requires supervisor authority.
Exam Tip for Agency Practice
Salespeople do agency work on the agent's behalf and under supervision; they do not run businesses, hold client money or set the agent's terms.
Real World Application in Agency Practice
Sarah, a new salesperson, receives a call from potential buyers wanting to view a property. She can arrange and conduct the viewing, explain property features, and answer questions about the local area. However, when the buyers ask about reducing the commission to make their offer more competitive, Sarah must refer them to her supervising agent. She can facilitate the conversation but cannot independently agree to commission changes, as this requires supervisor authority under the supervision requirements.
Common Mistakes to Avoid on Agency Practice Questions
- •Assuming salespersons can make any business decisions independently
- •Confusing supervision requirements with complete restriction of client contact
- •Thinking commission negotiations are routine activities salespersons can handle
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?
People Also Study
Property Law & Legislation
56 questions
Sale & Purchase Process
63 questions
Professional Conduct & Ethics
46 questions
Property Management
85 questions
Related Study Resources
Previous Question
A salesperson's agency holds a sole agency over a property. During the term, the owner negotiates directly with a buyer who first viewed the property through the agency, and wants to complete the sale without paying commission. What is the correct position?
Next Question
A vendor instructs their agent not to disclose that the property is in a flood-prone area, claiming it's not relevant as no flooding has occurred recently. The agent knows this information would be material to purchasers. What is the agent's correct course of action?