A salesperson submits a written offer that the vendor rejects. What must happen to a copy of it under rules 10.11 and 10.12 of the Client Care Rules?
Correct Answer
C) The salesperson gives the agent a copy, and the agent keeps it for 12 months.
Rule 10.11 requires a licensee employed or engaged by an agent to give the agent a copy of every written offer they submit. Rule 10.12 requires the agent to keep a copy of every written offer for 12 months, whoever submitted it and whether or not it resulted in a transaction.
Why This Is the Correct Answer
Rules 10.11–10.12 require copies to the agent and 12-month retention of all written offers.
Why the Other Options Are Wrong
Option A: It can be destroyed, because only offers that lead to a sale need to be kept on file.
Rule 10.12 applies whether or not the offer resulted in a transaction.
Option B: The salesperson keeps it personally for 6 years in case of a complaint from the buyer.
The rules require the salesperson to give a copy to the agent, who keeps it for 12 months.
Option D: The vendor's lawyer keeps it; the agency has no retention duty.
Rules 10.11 and 10.12 put the duty on the licensee and the agent, not the vendor's lawyer.
Background Knowledge for Agency Practice
Source: https://www.rea.govt.nz/real-estate-professionals/obligations/the-code-of-conduct/real-estate-agents-act-professional-conduct-and-client-care-rules-2012/
Exam Tip for Agency Practice
Every written offer, accepted or not: copy to the agent, kept for 12 months.
Common Mistakes to Avoid on Agency Practice Questions
- •Keeping only the offer that became the sale.
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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