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RES exam question on Ethics & Professional Conduct: Salesperson Nora is selling the condominium unit she owns with her husband, and is…

HardProfessional Practice, Ethics & Conduct · Paper 2

Salesperson Nora is selling the condominium unit she owns with her husband, and is marketing it herself. A buyer, Mr Tan, arrives at the first viewing with his own salesperson, Jason, from another agency. Mr Tan likes the unit. Which of the following statements is/are correct? (i) Nora tells Mr Tan and Jason at the start of the first viewing that she is one of the owners. (ii) Since Nora is a registered salesperson, therefore she may act for Mr Tan too if Jason withdraws. (iii) Nora may collect a co-broke commission from Jason if the sale to Mr Tan completes. (iv) Since Nora is a party to the sale, therefore she may not accept an appointment from Mr Tan.

  1. A(i) and (iii) only
  2. B(ii) and (iii) only
  3. C(i), (iii) and (iv) only
  4. D(i) and (iv) only
Show answer & explanation

Answer

D. (i) and (iv) only

Explanation

Answer: (i) and (iv) only. Selling her own unit, Nora must disclose upfront and may represent only herself.(i) True. The first viewing is the point by which buyers and their salespersons must know she is an owner.(iv) True. Being a party, she represents herself only.Rule: A salesperson who is a party to the deal must disclose upfront that she is an interested party, cannot act for the other side and cannot collect any commission from them.Source: CEA Professional Service Manual (Practice Guidelines, version 1.0 issued 1 Jan 2014, current at 1 Oct 2026, cea.gov.sg), para 1.4.1

Why the other options are wrong

  • (ii) False. Her registration is what makes acting for the buyer of her own unit a forbidden conflict, whether or not Jason withdraws.
  • (iii) False. A salesperson selling her own property cannot take a co-broke commission from the buyer's side.

Study the concept behind this question: Dual Representation & Conflict of Interest (RES)

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