In a multi-offer situation, a buyer hands the salesperson a signed written offer but refuses to sign the agency's multi-offer acknowledgement form. What must the salesperson do with the offer?
Correct Answer
A) Present it to the vendor anyway, as rule 10.10 requires every written offer be submitted.
REA's multi-offer guidance says multi-offer processes are standard practice but not required by the Act or Rules. If a buyer signs a written offer but refuses to sign a multi-offer form, rule 10.10 still requires the offer to be presented, and the licensee may record that the buyer was told about the multi-offer.
Why This Is the Correct Answer
Rule 10.10 requires every written offer to be submitted, whatever the agency's process.
Why the Other Options Are Wrong
Option B: Hold it back until the buyer signs the form, as the agency's multi-offer process requires.
Multi-offer forms are industry practice, not law; rule 10.10 still requires the written offer to be presented.
Option C: Return it, because an offer that does not follow the multi-offer process is invalid.
Nothing in the Act or Rules makes an offer invalid for lack of a multi-offer form.
Option D: Present it only if it is the highest offer received by the deadline set for the process.
Rule 10.10 requires all written offers to be submitted, not just the highest.
Background Knowledge for Agency Practice
Source: https://www.rea.govt.nz/real-estate-professionals/industry-guidance-and-information/the-sales-process-and-general-guidance/multi-offers/
Exam Tip for Agency Practice
A written offer always goes to the vendor.
Common Mistakes to Avoid on Agency Practice Questions
- •Treating an agency's internal multi-offer form as a legal condition of presenting an offer.
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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