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RES exam question on Ethics & Professional Conduct: Samantha, a salesperson, acts only for Mr Goh, who is buying a private apartment

HardProfessional Practice, Ethics & Conduct · Paper 2

Samantha, a salesperson, acts only for Mr Goh, who is buying a private apartment. The seller has his own salesperson from another agency. Mr Goh wants Samantha to secure the unit at the lowest price she can. Which of the following statements is/are correct? (i) Since Samantha acts for Mr Goh, therefore she protects and promotes his interests in the price negotiation. (ii) Samantha tells Mr Goh of material facts about the unit that she knows of. (iii) Samantha deals honestly with the seller's side, though she owes the seller no duty of loyalty. (iv) Samantha explains the option's terms and their consequences to Mr Goh before he signs it.

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

Answer

D. All of the above

Explanation

Answer: All of the above. Loyalty and full disclosure run to Mr Goh, and honesty runs to everyone, so every statement holds.(i) True. Protecting and promoting his interests is her core duty, and pressing for the best price follows from it.(ii) True. Withholding a material fact she knows of breaches the duty not to withhold relevant information.(iii) True. Loyalty runs to Mr Goh alone, but honesty runs to everyone. She may negotiate hard but may not, for example, overstate his readiness to complete.(iv) True. The option binds him once signed, so its terms must be explained first.Rule: A salesperson protects and promotes the client's interests, withholds no relevant fact from him and explains documents before he signs. She must still deal honestly and fairly with the other side.Source: 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), paras 6(2), 6(2)(d), 8(2), 6(3)-(4)

Study the concept behind this question: CEA Code of Ethics & Professional Conduct

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