Under section 121 of the Real Estate Agents Act 2008, what must appear on every advertisement an agent publishes?
Correct Answer
D) The agent's name and the fact that the agent is licensed under the Act
Section 121 of the Real Estate Agents Act 2008 requires each agent to show its required name information prominently on every advertisement, website, office and business document. That information is the agent's name and the fact that it is licensed under the Act, plus the name under which the business trades if that is different. This is why agency advertising carries the words 'Licensed REAA 2008'.
Why This Is the Correct Answer
Section 121 requires every agent to display its 'required name information' on all notices, advertisements and other material published in the course of business: the agent's name and the fact that it is licensed under the Act, plus the trading name if the business runs under a different name.
Why the Other Options Are Wrong
Option A: The listing salesperson's mobile number, so that buyers can reach them directly
No provision requires a salesperson's mobile number. Section 121 is about identifying the agent and its licensed status, not contact details.
Option B: The vendor's asking price or, if there is none, the agent's own price estimate
An agency need not advertise a price. Rule 10.4 only says that any advertised price must reflect the pricing expectations agreed with the client.
Option C: The property's current rateable value as shown on the latest council valuation
Rateable value is council information, and nothing in the Act or rules requires it in advertisements.
Deep Analysis of This Professional Conduct Question
This question tests the statutory disclosure that lets consumers identify who is responsible for an advertisement. Section 121 is aimed at the agent, meaning the licensed business, and ensures a member of the public can see that the business is licensed and can check it on the public register. It does not mandate personal contact details, prices or valuation data.
Background Knowledge for Professional Conduct
Section 121 of the Real Estate Agents Act 2008 defines required name information as the agent's name and the fact that it is licensed under the Act, and, if the business is carried on under another name, that name or style. The information must be displayed at each office, on each website, on all notices and advertisements, and on business documents and agreements. Separately, the Professional Conduct and Client Care Rules 2012 require advertising to match what the client authorised (r 10.9) and any advertised price to reflect the agreed pricing expectations (r 10.4).
Memory Technique
Every ad carries a name badge: WHO the agent is and THAT it is licensed. That is why you see 'Licensed REAA 2008' on signboards and listings.
When asked what must appear on advertising, look for the agent's name and licensed status. Prices, valuations and phone numbers are marketing choices, not section 121 requirements.
Exam Tip for Professional Conduct
Section 121 applies to the agent, meaning the licensed business. Watch for options that swap in a salesperson's personal details or pricing information.
Real World Application in Professional Conduct
A franchise office trades as 'Harbour Homes'. Its signboards and online listings must show the licensed company's name, that it is licensed under the Real Estate Agents Act 2008, and the 'Harbour Homes' trading name, so a buyer can check the register and know who is accountable.
Common Mistakes to Avoid on Professional Conduct Questions
- •Thinking the individual salesperson's name is the statutory requirement
- •Believing an asking price must always be advertised
- •Forgetting that the licensed status must be stated, not just the brand
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?
- → 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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