A sole agency expired a month ago without a sale, and the vendor has not listed elsewhere. The agency's online listing and a signboard are still up. What does REA's guidance say about this?
Correct Answer
C) All marketing must stop now; leaving it up breaches rule 9.6.
Rule 9.6 says a licensee must not offer or market land unless the client has authorised it through an agency agreement. REA's guidance says that when a listing ends unsold, all marketing must stop, including physical, print and digital advertising, and that leaving it up breaches rule 9.6.
Why This Is the Correct Answer
Once the agency agreement ends there is no authority to market, so rule 9.6 is breached.
Why the Other Options Are Wrong
Option A: The agency may keep it up until the vendor asks in writing for it to be removed.
REA says it is the licensee's job to remove all advertising when a listing ends, without waiting.
Option B: Online listings may stay, but the signboard must go within 10 working days of expiry.
All advertising must be removed, online and physical; REA sets no 10-day grace period.
Option D: It can stay in case the vendor relists with the agency.
Without a current agency agreement, rule 9.6 bars offering or marketing the property.
Background Knowledge for Agency Practice
Source: https://www.rea.govt.nz/real-estate-professionals/industry-guidance-and-information/listing-a-property/marketing-and-advertising/
Exam Tip for Agency Practice
Listing ends, marketing ends: remove every sign and ad.
Common Mistakes to Avoid on Agency Practice Questions
- •Waiting for the vendor to ask before taking down expired advertising.
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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A salesperson wants to save time by giving a prospective vendor an automated online price estimate, without visiting the house, and then signing the agency agreement. What does REA's guidance on rule 10.2 say?
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A vendor signs a sole agency agreement and gets her copy on Tuesday. On Wednesday morning the salesperson shows the house to a buyer, and at 3 pm the vendor cancels by email under s 130. A week later she sells privately to that buyer. What is the agency's position?