A vendor signs a sole agency agreement on Thursday and receives her signed copy the same day. On Friday morning she has second thoughts. Under s 130, how and by when can she cancel?
Correct Answer
C) By written notice to the agent, including email, by 5 pm on Friday.
Section 130(1) lets a client cancel a sole agency agreement by written notice to the agent by 5 pm on the first working day after the day a copy was given under s 126(1)(c). Section 130(2) allows the notice to be served by fax or email, and s 130(3) says contrary contract terms do not override the right.
Why This Is the Correct Answer
Copy given Thursday, so the s 130 window closes 5 pm on the next working day, Friday; email is permitted.
Why the Other Options Are Wrong
Option A: By phoning the agent any time within 3 working days after she received her copy.
Section 130 requires written notice by 5 pm on the first working day after the copy is given.
Option B: By written notice within 10 working days, the statutory cooling-off period for listings.
There is no 10-working-day cooling-off for agency agreements; the window closes 5 pm the next working day.
Option D: She cannot cancel early, as a sole agency binds her for its term.
Section 130 gives a next-working-day right to cancel that overrides any contrary term.
Background Knowledge for Agency Practice
Source: https://www.legislation.govt.nz/act/public/2008/0066/latest/whole.html
Exam Tip for Agency Practice
Sole agency: written cancellation by 5 pm the first working day after the copy is given.
Common Mistakes to Avoid on Agency Practice Questions
- •Counting the window from signing rather than from when the copy was given.
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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