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?
Correct Answer
C) A copy signed for the agent must be given to the client within 48 hours
Section 126(1) of the Real Estate Agents Act 2008 makes commission depend on a written agency agreement signed by the client and the agent, and on a copy signed by or for the agent being given to the client within 48 hours after the client signs. A court can allow recovery despite a late copy only in the narrow circumstances in section 126(2) and (3).
Why This Is the Correct Answer
Section 126(1)(c) requires a copy of the agency agreement, signed by or on behalf of the agent, to be given to the client within 48 hours after the client signs. If that does not happen, the agent is not entitled to commission unless a court orders otherwise under section 126(2).
Why the Other Options Are Wrong
Option A: The agreement must be registered with the Real Estate Authority within 48 hours
Agency agreements are not registered with the Authority; the 48-hour rule is about giving the client a copy.
Option B: A copy must be given to the client within five working days of signing
The statutory period in section 126 is 48 hours after the client signs, not five working days.
Option D: The client's lawyer must countersign the agreement before any marketing begins
Rule 9.7 requires licensees to recommend legal advice, but no lawyer's countersignature is needed for the agreement to be valid.
Deep Analysis of This Agency Practice Question
Section 126 makes the agent's right to be paid depend on paperwork: a written agreement, signed by both sides, and a copy in the client's hands within 48 hours. The copy matters because it starts the client's right to cancel a sole agency by 5 pm on the next working day (s 130). A court can rescue a late copy only if the delay was inadvertent or beyond the agent's control, the commission is fair, and refusing would be unjust.
Background Knowledge for Agency Practice
Section 126 of the Real Estate Agents Act 2008 overrides the general contract law on this point. Section 127 requires the approved residential guide to be given before an agency agreement for residential property is signed. Section 130 allows a sole agency client to cancel by written notice by 5 pm on the first working day after receiving the copy.
Memory Technique
Once the client signs, the clock starts: a signed copy must reach the client within 48 hours or commission is at risk.
Use it for any question about what makes commission recoverable or when the sole agency cancellation window starts.
Exam Tip for Agency Practice
Section 126: written and signed by both, plus a copy to the client within 48 hours; there is no registration step.
Real World Application in Agency Practice
A vendor signs a sole agency on Friday evening. The salesperson emails the vendor a copy countersigned for the agent on Saturday morning, well inside 48 hours, and notes that the vendor may cancel by 5 pm on Monday.
Common Mistakes to Avoid on Agency Practice Questions
- •Thinking agency agreements are registered with the Authority
- •Confusing the 48-hour copy rule with a working-day period
- •Believing a lawyer must approve the agreement for it to be valid
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?
- → 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?
- → A licensed real estate agent operates as a sole trader and employs two salespersons. One salesperson engages in misleading conduct during a property sale. Who bears primary legal responsibility for this conduct under the Real Estate Agents Act 2008?
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