RES exam question on Regulation & the CEA Framework: Salesperson Darren puts his own condominium up for sale
Salesperson Darren puts his own condominium up for sale. A buyer comes to the first viewing with her own salesperson, and Darren wonders what his role can be. Which statements are correct? (i) He must declare that he is the owner as early as possible, such as before or at the start of the first viewing (ii) He may also act for the buyer, as long as she agrees to it (iii) He must not collect commission or co-broke commission from the buyer or her salesperson (iv) He should represent only himself in the transaction
- A(i), (ii) and (iii) only
- B(ii), (iii) and (iv) only
- C(i), (iii) and (iv) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
C. (i), (iii) and (iv) only
Explanation
A salesperson who is a party to a transaction has a direct conflict of interest. Under the Code of Ethics and Professional Client Care (paragraphs 13(1) and 13(2)) and CEA's Professional Service Manual, he must declare his interest upfront, as early as possible. CEA gives the example of before or at the beginning of the first viewing, so (i) is correct. The declaration should be clear and explicit, not implied from photographs or other hints. (iv) is correct: because of the conflict, he should represent only himself. (iii) is correct: he must not collect any commission or co-broke commission from the buyer or her salesperson. Trap: thinking consent allows a salesperson-owner to act for both sides.
Why the other options are wrong
- (ii) is wrong: the buyer's agreement does not cure the conflict, and he must not accept an appointment from, or act for, the other party.
Study the concept behind this question: Estate Agent Licensing vs Salesperson Registration (CEA)
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