A client complains to a salesperson about the service they received. Under the Client Care Rules, what must the licensee make sure the client knows?
Correct Answer
C) That they can complain to the Authority without using the in-house process first
Rule 12 of the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 requires every agent to have written in-house complaints procedures (r 12.1) and to tell clients about them (r 12.2). Rule 12.3 adds that clients must be told they can complain to the Authority without first using the in-house process. Section 74 of the Act lets any person complain to the Authority.
Why This Is the Correct Answer
Rule 12.3 of the Client Care Rules requires licensees to make sure clients and customers know they can use the Authority's complaints process without first using the in-house procedure, and that using the in-house procedure does not stop them complaining to the Authority.
Why the Other Options Are Wrong
Option A: That the complaint must go to the Disciplinary Tribunal before anything else can happen
Complaints go to the Authority, not the Tribunal. The Tribunal hears charges only after a Committee has dealt with a complaint.
Option B: That a complaint the agency thinks unreasonable can simply be ignored
Agents must keep written in-house complaint procedures (r 12.1). Ignoring a complaint is not an option the rules allow.
Option D: That the agency must obtain legal advice before it can respond to them
No rule requires legal advice before responding. The rules focus on having a procedure and telling clients about the Authority.
Deep Analysis of This Property Law Question
The question tests how in-house complaint handling and the statutory complaints process fit together. Agencies should try to resolve complaints, but they cannot make that a gate the consumer must pass through before going to the regulator.
Background Knowledge for Property Law
Rule 12 of the 2012 Client Care Rules requires agents to keep written in-house complaint and dispute procedures, make them available, and tell prospective clients and customers about them before they sign anything. Under rule 12.3 licensees must also tell people that they can go straight to the Authority and that using the in-house process does not prevent a complaint. Section 74 of the Act lets any person complain in writing to the Authority.
Memory Technique
Picture two doors side by side: the agency's in-house process and the Authority. Rule 12.3 says both are open, and the client can use either first.
If an option makes the in-house process compulsory before a complaint to the Authority, reject it.
Exam Tip for Property Law
Watch for 'must first' wording. The in-house process is available, but it is never a mandatory first step before the Authority.
Real World Application in Property Law
A vendor is unhappy with how their campaign was run. The branch manager explains the agency's complaints procedure and also tells the vendor they may complain directly to the Real Estate Authority at any stage, whether or not they use the in-house process.
Common Mistakes to Avoid on Property Law Questions
- •Believing the in-house process must be used first
- •Sending complaints straight to the Tribunal
- •Thinking the agency can decide a complaint is not worth answering
Related Topics & Key Terms
Key Terms:
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