RES exam question on Ethics & Professional Conduct: reflect the salesperson's professional obligations
Case Study: A registered salesperson is appointed to market a condominium unit. The person instructing her claims to be acting under a Power of Attorney (POA) on behalf of the registered owner who lives overseas. Which statements reflect the salesperson's CORRECT professional obligations? (i) The salesperson may rely entirely on the attorney's verbal assurance and proceed to market immediately (ii) The salesperson should verify that a valid POA exists and that it authorises the attorney to sell and sign documents (iii) The salesperson should sight the original or certified copy of the POA and confirm it has not been revoked (iv) If any doubt exists as to the validity of the POA, the salesperson should advise the parties to seek legal advice
- A(ii), (iii) and (iv) only
- B(i), (ii) and (iii) only
- C(i), (iii) and (iv) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
A. (ii), (iii) and (iv) only
Explanation
(ii) CORRECT — the salesperson must verify that the POA is valid, subsisting, and covers the authority to sell. (iii) CORRECT — the salesperson should inspect the original or certified copy and check that it remains unrevoked (a POA is automatically revoked upon the donor's death or mental incapacity). (iv) CORRECT — where doubt remains, advising parties to seek legal advice is the appropriate professional response under CEA's Code of Ethics.
Why the other options are wrong
- (i) INCORRECT — relying on a verbal assurance alone is insufficient; the salesperson must sight documentary proof.
Study the concept behind this question: CEA Code of Ethics & Professional Conduct
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