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?
Correct Answer
B) Cancel or suspend the licence, fine the licensee, or order further training
The Real Estate Disciplinary Tribunal has comprehensive powers including licence cancellation or suspension, imposing conditions on practice, ordering penalty payments, and requiring additional education or training. These powers ensure appropriate consequences match the severity of the misconduct found.
Why This Is the Correct Answer
Under s 110 of the Real Estate Agents Act 2008, once misconduct is proved the Tribunal can make any order a Committee can (such as censure, apology, training or a fee refund), cancel the licence, suspend it for up to 24 months, fine an individual up to $15,000, and order compensation of up to $100,000.
Why the Other Options Are Wrong
Option A: Issue a warning only, because the licensee kept working during the investigation
Working while a complaint is pending is lawful unless the licence is suspended, and it does not limit the Tribunal's orders.
Option C: Send the matter back to the Authority to negotiate a money settlement
The Tribunal decides the charge itself; it has no power to hand a proved charge back for a negotiated settlement.
Option D: Publicly censure the licensee, but not affect their ability to keep practising
Censure is available, but s 110 also lets the Tribunal cancel or suspend the licence.
Deep Analysis of This Professional Conduct Question
The Real Estate Agents Disciplinary Tribunal is independent of the Authority. When a charge of misconduct is proved, s 110 gives it the full range of sanctions, from those a Complaints Assessment Committee can impose up to cancellation. Carrying on working while the process runs is normal; the Tribunal can suspend a licence pending the hearing under s 115 if needed, but continuing to work does not reduce the orders available at the end.
Background Knowledge for Professional Conduct
Real Estate Agents Act 2008, s 110: on proof of misconduct the Tribunal may make any s 93 order (censure, apology, training, reduce or refund fees, rectify errors, fine up to $10,000), cancel the licence, suspend it for up to 24 months, bar supervisory functions, order that no agent employ the person, fine an individual up to $15,000 (company $30,000), and order compensation up to $100,000.
Memory Technique
Remember SCOPE: Suspend licence, Conditions on practice, Order penalty payments, Public censure, Education requirements. The Tribunal has the full SCOPE of disciplinary powers - it's not limited to just warnings or censure, but can use the complete scope of sanctions available.
When you see disciplinary tribunal questions, think SCOPE to remember they have comprehensive powers. If an option suggests limited powers (like 'warning only' or 'censure only'), it's likely wrong because the Tribunal has the full scope of disciplinary tools.
Exam Tip for Professional Conduct
Look for options mentioning comprehensive or multiple powers rather than single limited sanctions. The Tribunal has wide-ranging authority, so avoid options suggesting restricted powers based on circumstances like continuing to work during investigation.
Real World Application in Professional Conduct
A licensee is found guilty of failing to disclose a material defect to buyers, causing them financial loss. The Tribunal could impose multiple sanctions: a $10,000 penalty payment, suspension for 6 months, conditions requiring supervision upon return, and mandatory completion of a property disclosure course. This graduated approach addresses the misconduct severity while providing rehabilitation opportunities, demonstrating how the Tribunal's comprehensive powers work in practice to protect consumers while maintaining industry standards.
Common Mistakes to Avoid on Professional Conduct Questions
- •Thinking continued work during investigation limits disciplinary powers
- •Confusing the Tribunal's role with the Real Estate Authority's investigation role
- •Believing the Tribunal can only impose single sanctions rather than multiple combined penalties
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 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?
- → A real estate agent discovers that a property they are marketing has a building consent issue that the vendor is unaware of. What is the agent's obligation under the REA Code?
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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?
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