RES exam question on Ethics & Professional Conduct: Mr Ang asks salesperson Wen to sell his mother's apartment
Mr Ang asks salesperson Wen to sell his mother's apartment. She was diagnosed with advanced dementia last year. He produces an ordinary power of attorney she signed three years ago covering 'my property and affairs', and asks for the option to be prepared with him signing as her attorney. What should Wen do?
- AProceed, as the power of attorney covers property and was signed while she still had capacity
- BDecline until a registered lasting power of attorney or a court deputyship order is produced
- CProceed if Mr Ang signs the estate agency agreement himself, so the client has full capacity
- DProceed once the power of attorney has been registered with the Office of the Public Guardian
Show answer & explanation
Answer
B. Decline until a registered lasting power of attorney or a court deputyship order is produced
Explanation
Answer: Decline until a registered lasting power of attorney or a court deputyship order is produced. An ordinary power ends once capacity is lost.Rule: An ordinary power of attorney stops working when the donor loses capacity. A registered lasting power whose donee holds property and affairs powers, or a court deputyship order, is then needed to deal with her property, and the salesperson must verify that authority.Source: Mental Capacity Act 2008; Code of Ethics and Professional Client Care, First Schedule to the Estate Agents (Estate Agency Work) Regulations 2010 (in force 15 Nov 2010, current at 1 Oct 2026, sso.agc.gov.sg), para 4(2)(b); CEA Professional Service Manual (Practice Guidelines, version 1.0 issued 1 Jan 2014, current at 1 Oct 2026, cea.gov.sg), para 1.7.2; /learn/capacity-to-hold-land-minors-companies-mental-capacity
Why the other options are wrong
- Proceed, as the power covers property: However widely it is worded, an ordinary power is spent once the donor loses capacity.
- Mr Ang signs the agency agreement himself: Signing in his own name gives him no power over his mother's property.
- Register the existing power with the Office first: Registration is a step for lasting powers, not a cure for an ordinary one.
Study the concept behind this question: CEA Code of Ethics & Professional Conduct
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