A client complains to an agency about its salesperson, and the agency's in-house procedure finds the complaint justified. What is the best response?
Correct Answer
A) Apologise to the client and take appropriate corrective action
Rule 12 of the Client Care Rules requires agencies to have written in-house complaint procedures and to tell people they can complain to the Authority at any time, but it does not prescribe the outcome. When a complaint is upheld, good practice is to acknowledge it, apologise and fix the problem, for example with training or closer supervision.
Why This Is the Correct Answer
Rule 12 requires written in-house complaint procedures but does not script the outcome. When an agency finds a complaint justified, good practice is to acknowledge it, apologise and fix the problem, for example with training or closer supervision, while the client stays free to complain to the Authority.
Why the Other Options Are Wrong
Option B: Refer the matter to the Real Estate Authority, as the Rules require first
The Rules do not require an agency to refer an upheld complaint; rule 12.3 only requires telling people they may go to the Authority at any time.
Option C: Dismiss the salesperson and write to every client the salesperson served
Dismissal and notifying every client are drastic and not required; the response should fit the problem.
Option D: Pay compensation, which the Rules require whenever a complaint is upheld
No rule requires compensation for every upheld complaint; compensation comes by agreement or by order of a Committee or the Tribunal.
Deep Analysis of This Professional Conduct Question
The question is about proportionate complaint handling. The Rules require a written in-house procedure (rule 12.1), that clients and customers know about it (rule 12.2), and that they know they can go to the Authority without using it first (rule 12.3). Nothing in the Rules dictates the remedy for an upheld complaint, so the best answer is the proportionate one: accept the finding, apologise, and correct the conduct.
Background Knowledge for Professional Conduct
Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012, rule 12: agencies must keep written in-house complaints and dispute resolution procedures; licensees must make sure people know of them before signing, and that they may complain to the Authority at any time. A salesperson must tell the agency within 10 working days of any complaint made to the Authority about them (rule 12.4).
Memory Technique
Remember AAA: Acknowledge, Apologise, Act. It is good practice, not a rule, and the client can still go to the Authority whenever they choose.
For in-house complaint questions, pick the proportionate response that fixes the problem, and reject options that claim a rule demands referral, compensation or dismissal.
Exam Tip for Professional Conduct
Clients never have to use the in-house process first (rule 12.3). The Rules require the procedure to exist, not a particular outcome.
Real World Application in Professional Conduct
A client complains that their salesperson failed to return calls promptly and missed an important deadline. After investigating, the agency finds the complaint justified - the salesperson was indeed unresponsive. The agency apologizes to the client for the poor service and implements corrective action by providing the salesperson with additional training on client communication protocols and implementing a call-back tracking system. This resolves the issue professionally while improving future service standards.
Common Mistakes to Avoid on Professional Conduct Questions
- •Assuming all justified complaints must be reported to the Real Estate Authority immediately
- •Believing financial compensation is always required for justified complaints
- •Thinking dismissal is the automatic response to any justified complaint
Related Topics & Key Terms
Key Terms:
More Professional Conduct Questions
According to the REA Code of Professional Conduct and Client Care, what is the primary duty of a real estate licensee?
A licensee receives confidential information about their client's financial difficulties. When can this information be disclosed to third parties?
During a complaint investigation, what is a licensee's obligation regarding cooperation with the Real Estate Authority?
A licensee discovers that a competing agent has made false statements about a property they have listed. What is the most appropriate course of action?
A licensee is charged with misconduct for serious breaches of the Code. During the disciplinary hearing, they argue that their actions were directed by their branch manager. How will this affect the Tribunal's decision?
- → A licensee keeps working while a complaint against them goes to the Real Estate Agents Disciplinary Tribunal. If misconduct is proved, what can the Tribunal do?
- → A licensee working for Agency A learns confidential information about a client’s financial difficulties. They then move to Agency B and are asked to give market advice on that client’s property to a prospective buyer who is a client of Agency B. How should they handle this situation?
- → A licensee working for Agency A learns confidential information about a client's urgent need to sell due to financial difficulties. The licensee then moves to Agency B and uses this information to approach the former client with a lower offer through a contact. This scenario primarily involves a breach of which professional obligation?
- → An agent receives two written offers on the same property at the same time: one from the agent's personal friend at $50,000 below the asking price, and one from an unknown buyer at the asking price. The agent presents only the friend's offer. Under the Real Estate Agents Act 2008, this most likely amounts to:
- → According to the REA Code of Professional Conduct and Client Care, what is the primary purpose of the Code?
- → In what situation would the Real Estate Agents Disciplinary Tribunal have jurisdiction to hear a complaint against a former licensee?
- → James, a branch manager, becomes aware that one of his salespeople has been providing misleading information to clients about settlement timeframes. Under the REA Code, what is James's primary obligation?
- → Under section 121 of the Real Estate Agents Act 2008, what must appear on every advertisement an agent publishes?
- → When can a licensee disclose confidential client information to a third party?
- → A client asks their real estate agent to not disclose a known flooding issue to potential buyers. What should the agent do?
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