An experienced salesperson engaged as an independent contractor works from home in another town and tells her agency she no longer needs supervision. What is the correct position under the Real Estate Agents Act 2008?
Correct Answer
C) She must still be supervised; remote supervision is allowed, and the agent remains liable for her.
Section 50 requires every salesperson to be properly supervised and managed by an agent or branch manager, meaning enough direction and control to ensure competent and compliant work. REA confirms supervision applies regardless of experience or contract type, that remote supervision is allowed, and that under s 51(3) an agent is liable for a contractor salesperson as if they were an employee.
Why This Is the Correct Answer
Section 50 applies to all salespersons, remote supervision is allowed, and s 51(3) keeps the agent liable.
Why the Other Options Are Wrong
Option A: She needs no supervision, because s 50 applies only to salespersons who are employees.
Section 50 applies to all salespersons, and s 51(3) makes the agent liable for contractors as for employees.
Option B: She needs no supervision after 2 years, when a salesperson may work without supervision.
REA says all salespersons must be supervised however long they have worked; there is no 2-year rule.
Option D: She must be supervised, but only when her supervisor is physically present in her office.
REA says the Act does not require physical presence; remote supervision is allowed with care.
Background Knowledge for Agency Practice
Source: https://www.rea.govt.nz/real-estate-professionals/obligations/supervision/
Exam Tip for Agency Practice
Salesperson licence means supervision, whatever the contract type, experience or location.
Common Mistakes to Avoid on Agency Practice Questions
- •Believing contractors or experienced salespersons fall outside the supervision requirement.
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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