An agent receives two offers for the same property at the same time: one signed in writing, and one made by phone. What should the agent do?
Correct Answer
A) Submit the written offer and ask the phone buyer to put their offer in writing
Rule 10.10 of the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 requires a licensee to submit all written offers to the client, and rule 10.12 requires the agent to keep a copy for 12 months. A verbal offer for land cannot be enforced (Property Law Act 2007 s 24), so the agent should tell the vendor about the interest and ask the phone buyer to make a written offer.
Why This Is the Correct Answer
Rule 10.10 of the Client Care Rules requires a licensee to submit to the client all offers that are in writing. A contract for land is unenforceable unless it is in writing (Property Law Act 2007 s 24), so the phone buyer should be asked to put their offer in writing so the vendor can consider both.
Why the Other Options Are Wrong
Option B: Present the phone offer first, as it may have arrived a few minutes earlier
Timing does not decide it, and a phone offer cannot bind anyone. It needs to be put in writing before it can be submitted.
Option C: Present only the written offer, and tell the phone buyer that their offer is void
Brushing off the phone buyer is poor practice. The agent should help them put the offer in writing so it can be submitted properly.
Option D: Ask both buyers to raise their offers before either goes to the vendor
Holding back offers to push prices up is contrary to the agent's duty to submit written offers and act in good faith.
Deep Analysis of This Property Law Question
The question tests how offers are handled in practice. Written offers must be submitted to the client; verbal interest is passed on as information, but it becomes an offer the vendor can accept only when it is in writing and signed.
Background Knowledge for Property Law
Under rule 10.10 a licensee acting for a seller must submit all written offers to the client, and under rule 10.11 a salesperson must give their agent a copy of each written offer submitted. Rule 10.12 requires the agent to keep copies for 12 months. Section 24 of the Property Law Act 2007 makes contracts for the disposition of land unenforceable unless in writing and signed.
Memory Technique
Remember 'paper beats phone': written offers go to the vendor; phone offers need to become paper first.
When a question mixes verbal and written offers, pick the answer that submits the written offer and converts the verbal one into writing.
Exam Tip for Property Law
Rule 10.10's duty is about offers 'in writing'. Options that treat a phone call as an offer ready to present, or that stall offers to raise prices, are wrong.
Real World Application in Property Law
During a deadline sale, one buyer emails a signed offer while another rings with a matching price. The salesperson tells the vendor there is phone interest, sends the phone buyer an agreement to complete and sign, and submits both written offers to the vendor together.
Common Mistakes to Avoid on Property Law Questions
- •Treating a phone call as an offer ready to present
- •Thinking whichever offer came first must be accepted
- •Holding offers back to stir up competition
Related Topics & Key Terms
Key Terms:
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