Professional conduct, ethics and the Code of Conduct
This domain tests the standards in the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012, usually called the Code of Conduct, and how you apply them when duties collide. Questions commonly involve conflicts, confidentiality, gifts, and misleading conduct.
Core standards
- A licensee owes the client fiduciary duties: act in the client's best interests, follow lawful instructions, disclose relevant information, and account for money. The licensee must also deal fairly and in good faith with other parties.
- Be honest and straightforward. Do not mislead, conceal material information, or make exaggerated claims. Confidentiality continues after the agency ends unless the client consents or the law requires disclosure.
- Disclose conflicts of interest before or at the time the issue arises. A benefit from a third party connected with the transaction, such as a referral fee or gift, must be disclosed to the client.
- Maintain competence and care; if a matter is outside your expertise, get help rather than guess.
Worked example
A salesperson refers a buyer to a mortgage broker and receives a $500 voucher. The buyer is not the salesperson's client, but the benefit is connected with the transaction. The salesperson must disclose it promptly and follow the client's informed instructions. Hiding the voucher breaches the Code even if the referral was a good one.
Traps
- Thinking confidentiality ends at settlement.
- Treating a conflict as acceptable because everyone knows the parties.
- Relying on the client's unlawful instruction as a defence.