Agency Practice

An agency agreement contains a clause stating that the agent's commission is payable even if the property is sold by the vendor directly to a buyer introduced by the agent during the agency period, but the sale settles after the agency expires. Is this clause enforceable?

What is the minimum requirement for agency agreements under the Real Estate Agents Act 2008?

Under section 126 of the Real Estate Agents Act 2008, what must happen after the client signs an agency agreement for the agent to be entitled to commission?

Before a homeowner signs an agency agreement to sell their residential property, what must the agent do under s 127 of the Real Estate Agents Act 2008?

A vendor signs a sole agency agreement on Monday afternoon. The salesperson forgets to give her a signed copy until the following Monday, and the property later sells. Under s 126 of the Real Estate Agents Act 2008, what is the agency's position on commission?

What type of agency agreement allows a property owner to engage multiple real estate agencies to market their property?

What information must be included in every agency agreement under the Real Estate Agents Act 2008?

Under what circumstances can a real estate agent continue to act for a client after their agency agreement has expired?

A salesperson's agency holds a sole agency over a property. During the term, the owner negotiates directly with a buyer who first viewed the property through the agency, and wants to complete the sale without paying commission. What is the correct position?

Which of the following allows an agent to end an agency agreement before its expiry date?

Before a vendor signs an agency agreement, which matters must the licensee explain and set out in writing under the Client Care Rules?

Which type of agency agreement allows a vendor to sell their property themselves without paying commission to the agent?

An agent's sole agency expires in two days, and the vendor plans to list with a different agent next month. The original agent says a buyer it introduced is still negotiating. What determines the original agent's entitlement to commission?

A licensed salesperson working under a sole agency agreement discovers that the vendor has been showing the property privately to potential buyers without informing the agency. The vendor then sells to one of these private buyers. What is the commission situation?

A real estate company's sole agency expires on Friday. The agreement entitles it to commission on a later sale to any buyer it introduced during the term. On Thursday it introduces a buyer whose offer is declined; on Monday that buyer buys through another agent. What is the company's position?

An agency agreement contains a clause stating that commission is payable even if the sale falls through due to the buyer's inability to obtain finance. The sale proceeds to unconditional status but subsequently fails due to the buyer's finance decline. Is commission payable?

In a sole agency agreement, what happens if the property is sold by another real estate agency during the agreement period?

Under a sole agency agreement, when is the vendor still liable to pay commission to the agent?

A licensee is appraising an unusual converted church, and there are no directly comparable or semi-comparable recent sales in the area. What does rule 10.3 of the Client Care Rules require?

A salesperson wants to save time by giving a prospective vendor an automated online price estimate, without visiting the house, and then signing the agency agreement. What does REA's guidance on rule 10.2 say?

A developer lists 12 new townhouses in one continuous development with an agency under a 6-month sole agency. After 100 days the developer wants to cancel under s 131. What is the likely position?

A vendor signs a sole agency agreement on Thursday and receives her signed copy the same day. On Friday morning she has second thoughts. Under s 130, how and by when can she cancel?

A homeowner signed a 150-day sole agency agreement for her house 95 days ago. The house has not sold and she wants to move to another agency. What does s 131 of the Real Estate Agents Act 2008 allow?

A vendor signs a sole agency agreement and gets her copy on Tuesday. On Wednesday morning the salesperson shows the house to a buyer, and at 3 pm the vendor cancels by email under s 130. A week later she sells privately to that buyer. What is the agency's position?

Before a vendor signs, a salesperson's agency agreement says only that commission is '3.95% of the sale price plus GST'. What else does rule 10.6(a) of the Client Care Rules require?

A salesperson owns 50% of a company that owns a rental unit her agency is selling. She tells a buyer about her interest only verbally, and he signs the agreement. Later he learns the details and wants to cancel under s 136. What is the position?

A salesperson lists a 1998 house with monolithic plaster cladding and no eaves. The vendor says there have been no leaks and has no reports. Under rule 10.7, what must the salesperson do?

A property was listed last year, but a sale fell through after a building report found weathertightness problems. The vendor has had repairs done and gives the agency a new clean report, asking that the old report not be mentioned. What does REA's guidance on a Tribunal decision say?

A vendor client tells the listing agent that the buyer who has just made an offer is her brother, and she wants to accept a price below the agent's appraisal. What should the agent do?

A salesperson working under a branch manager is listing a property owned by her brother. What disclosure must she make to prospective buyers?

What must a real estate agent disclose to a potential purchaser when showing a property?

A real estate agent discovers that a property has a leaky roof after the agency agreement is signed but before any offers are received. What is the agent's obligation?

Which of the following situations would create a conflict of interest requiring disclosure by a real estate licensee?

What must a licensee do when they become aware of a material defect in a property they are marketing?

What must a licensee disclose to a potential purchaser if they are related to the vendor?

When must a real estate agent disclose to a potential purchaser that they have a personal interest in the property being sold?

When must a real estate agent disclose any potential conflict of interest to their client?

A salesperson discovers that a property they are marketing has a leaking roof that the vendor has not disclosed. What should they do?

What must a licensee disclose to a potential purchaser when they have a personal interest in the property being sold?

A salesperson working under a branch manager wants to purchase a property listed by their own agency. What is the correct procedure?

Under the Real Estate Agents Act 2008, what is the primary duty that a real estate agent owes to their client?

What is the primary difference between a buyer's agent and a vendor's agent in terms of fiduciary duties?

A real estate agent receives two offers on a property at the same time. What is their primary obligation?

Under the Real Estate Agents Act 2008, what is the primary fiduciary duty that a real estate agent owes to their client?

An agent receives two offers on the same property within minutes of each other. The first offer is lower but from a buyer the agent knows well. The second offer is higher but from an unknown buyer. What must the agent do?

Sarah, a real estate agent, receives two offers on her client's property at the same time. One offer is higher but has more conditions, while the other is lower but unconditional. What is her primary obligation?

A buyer asks their agent to submit an offer significantly below the asking price without the seller knowing the buyer's maximum budget. How should the agent respond?

Which of the following best describes a fiduciary duty that a licensee owes to their client?

Sarah is a licensed salesperson who discovers that a property she is marketing has a significant structural issue that the vendor has not disclosed. What should she do?

A licensee discovers that a competing agency has been making false statements about properties they have listed. The licensee's fiduciary duty to their client would best be served by:

Sarah, a licensed salesperson, discovers that a property she is marketing has a leaky roof that the vendor hasn't disclosed. What should she do?

A vendor instructs their agent not to disclose that the property is in a flood-prone area, claiming it's not relevant as no flooding has occurred recently. The agent knows this information would be material to purchasers. What is the agent's correct course of action?

A salesperson receives an offer on a property they have listed. What is their first obligation regarding this offer?

Under what circumstances can a real estate agent purchase a property they have been engaged to sell?

A licensed salesperson receives confidential information about their client's urgent need to sell due to financial difficulties. A potential purchaser asks about the vendor's motivation. What should the salesperson do?

A licensee acting for a vendor receives two written offers at once: one from a buyer the licensee has been showing homes to, and a higher but more conditional offer through another agency. How should the offers be presented?

A salesperson learns confidential information about their vendor client's urgent financial situation requiring a quick sale. A potential purchaser asks the salesperson if there's any flexibility on price. How should the salesperson respond while maintaining their fiduciary duties?

In what circumstances can a real estate licensee continue to act for a client when they have a personal financial interest in the outcome of the transaction?

A salesperson working under supervision can perform which of the following activities?

Which licence allows a person to carry out real estate agency work for an agent, but only under supervision?

Which licence category allows a person to carry out real estate agency work without being supervised?

A licensed agent operates multiple offices across different cities. Each office has salespersons but no branch manager. Which statement is correct regarding supervision requirements?

A branch manager discovers that one of their salespersons has been providing incomplete information to potential purchasers about a property's title restrictions. What is the branch manager's primary responsibility?

Which licence category allows a person to carry on business as a real estate agent?

While holding a salesperson's licence, when can a person carry out real estate agency work without supervision?

A branch manager discovers that one of their salespersons has been operating without proper supervision for several weeks. Who is primarily responsible for this breach?

A licensee buys a client's property. The client agreed the valuation could follow within 14 days, and Form 2 records a provisional valuation of $610,000 (an invented figure). The independent valuation comes back at $645,000. What can the client do?

A salesperson's nephew wants to buy a house the salesperson has listed. The vendor is happy to go ahead and says she doesn't need a valuation. Under ss 134–135, what must happen?

A salesperson's spouse bought a listed property without the vendor's consent on the prescribed form. The vendor decides to keep the sale, but the agency has already deducted commission from the deposit. What does s 134 say about the commission?

A licensed real estate agent operates as a sole trader and employs two salespersons. One salesperson engages in misleading conduct during a property sale. Who bears primary legal responsibility for this conduct under the Real Estate Agents Act 2008?

A real estate company discovers that one of their salespersons has been taking secret commissions from mortgage brokers for client referrals. What are the potential consequences under the Real Estate Agents Act 2008?

A sole agency expired a month ago without a sale, and the vendor has not listed elsewhere. The agency's online listing and a signboard are still up. What does REA's guidance say about this?

A vendor tells the listing salesperson firmly that she will not accept less than $820,000 (an invented figure). The salesperson wants to advertise 'buyers enquiry over $780,000' to draw more interest. What does REA's guidance say?

A vendor tells the salesperson the section 'can definitely be subdivided' and wants this in the advertising, but the salesperson has not been able to confirm it with the council. What does REA recommend?

Three buyers are in a multi-offer process. Shortly before the deadline two withdraw, leaving one buyer who put in a strong offer believing she faced competition. What does REA's guidance say the salesperson should do?

In a multi-offer situation, a buyer hands the salesperson a signed written offer but refuses to sign the agency's multi-offer acknowledgement form. What must the salesperson do with the offer?

A licensed agent discovers that a competing agency has been making false statements about properties they have listed. The agent has evidence of these misrepresentations. What is the most appropriate course of action under the Real Estate Agents Act 2008?

An agency receives a volume rebate from a property-listing website on the marketing it charges vendors for, but its agency agreement says nothing about the rebate. The vendor pays the commission but refuses to pay the marketing costs. Who is right under s 128?

A salesperson submits a written offer that the vendor rejects. What must happen to a copy of it under rules 10.11 and 10.12 of the Client Care Rules?

A licensed agent discovers that their salesperson has been providing advice about tax implications of a property investment without appropriate qualifications. What is the agent's responsibility?

What is the minimum cooling-off period for a purchaser who buys a residential property at auction?

Sarah is a licensed salesperson working for ABC Real Estate. When showing a property to buyers, who does she primarily represent?

A branch manager discovers that one of their salespersons has been keeping duplicate keys to listed properties for personal use. What action should be taken?

A branch manager finds that a salesperson has not passed on the auction bidding record that the vendor client asked for. What should the branch manager do?

Sarah holds a salesperson's licence and works for ABC Real Estate. When presenting an offer to a vendor, who is legally responsible for ensuring all disclosure obligations are met?

James, a branch manager, discovers that one of his salespersons has been providing incorrect information about a property's zoning to potential buyers. The salesperson claims it was an honest mistake. What are James's obligations under the Real Estate Agents Act 2008?

An agency hires a non-licensed assistant to help at open homes. Which task does REA's guidance say the assistant may do?

An experienced salesperson engaged as an independent contractor works from home in another town and tells her agency she no longer needs supervision. What is the correct position under the Real Estate Agents Act 2008?

A salesperson licensed 4 months ago has found a buyer for a listing and wants to draft the sale and purchase agreement herself. What does REA's supervision guidance say?