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RES exam question on Contract & Agency Law: Grace, a salesperson, holds listings from two neighbours, Mr Ali and Mrs Beh, who are…

HardLaw of Contract & Agency · Paper 1

Grace, a salesperson, holds listings from two neighbours, Mr Ali and Mrs Beh, who are selling near-identical units on the same floor. A buyer, Mr Cheong, views both and asks for her help. (i) Grace may act for both sellers at once, since acting for competing sellers is inherent in estate agency work. (ii) She must tell Mrs Beh the lowest price Mr Ali has privately said he would accept, as it bears on Mrs Beh's pricing. (iii) If Mr Cheong asks her to act for him in buying Mr Ali's unit, regulation 5 bars her even if everyone consents. Which of the following statements are correct?

  1. A(iii) only
  2. B(i) and (ii) only
  3. CAll of the above
  4. D(i) and (iii) only
Show answer & explanation

Answer

D. (i) and (iii) only

Explanation

Answer: (i) and (iii) only. Acting for competing sellers is allowed, but she must keep each seller's confidences and cannot act for both sides of one sale.(i) True. Nothing in the Act or its Regulations, nor the common law, stops a salesperson acting for several sellers of similar properties at once.(iii) True. That would make Mr Ali and Mr Cheong both her clients for the same unit, which is barred even with consent.Rule: A salesperson may act for several sellers of similar properties but must not disclose a client's confidential information without consent. She may never have both the vendor and the purchaser of the same property as clients, even with consent.Source: Estate Agents Act 2010; Kelly v Cooper [1993] AC 205 (Privy Council); CEA Code of Ethics and Professional Client Care para 15(1) (First Schedule to the Estate Agents (Estate Agency Work) Regulations 2010); regs 5(1) and 5(2) of those Regulations (current at 1 October 2026); /learn/dual-representation-conflict-of-interest

Why the other options are wrong

  • (ii) False. Mr Ali's price floor is his confidential information, which she cannot disclose without his consent.

Study the concept behind this question: Misrepresentation & an Estate Agent's Liability

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