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NZ Real Estate Branch Manager study materials
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NZ Real Estate Branch Manager practice questions

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Question 1Licensing and licence classes (branch manager requirements)

Under the Real Estate Agents Act 2008, which licence class is a branch manager required to hold?

  1. A branch manager certificate issued by the Registrar
  2. A licence that authorises them to act as an agent, i.e. an agent licence Correct answer.
  3. A provisional licence endorsed for supervision
  4. A salesperson licence held for at least two years

Explanation

A branch manager must hold a licence that authorises them to carry out agency work as an agent, meaning an agent licence. A salesperson licence, even with long experience, does not permit the holder to be appointed as a branch manager. The Registrar does not issue a separate branch manager certificate.

Question 2Licensing and licence classes (branch manager requirements)

A licensed agent operates two offices in different cities. How many branch managers must be appointed for those offices?

  1. None, because branch managers are only needed for companies
  2. One for each office, since each is a branch Correct answer.
  3. One per region as defined by the local authority
  4. One, because the agent personally supervises both

Explanation

Every branch of an agency must have its own branch manager appointed, because the manager is responsible for the day-to-day supervision at that location. A single agent cannot rely on personal oversight across separate offices. Regional boundaries set by councils are irrelevant to the Act's office-based requirement.

Question 3Licensing and licence classes (branch manager requirements)

Who appoints a branch manager for a branch of a real estate agency?

  1. The branch's salespersons by majority vote
  2. The Real Estate Agents Disciplinary Tribunal
  3. The Registrar of the Real Estate Agents Authority
  4. The licensee who operates the agency, such as the agent in charge Correct answer.

Explanation

The licensee carrying on the agency business is responsible for appointing a branch manager for each branch. The Authority and Registrar administer licensing but do not make the appointment. Salespersons and the Tribunal play no role in selecting a branch manager.

Question 4Licensing and licence classes (branch manager requirements)

Which statement best describes the core statutory responsibility of a branch manager?

  1. Recruiting and training new salespersons only
  2. Handling all trust account reconciliations personally
  3. Supervising the branch's agency work and ensuring compliance with the Act Correct answer.
  4. Maximising the branch's sales volume and market share

Explanation

A branch manager is appointed to supervise the day-to-day agency work of the branch and ensure it is carried out in accordance with the Act and the regulations. Commercial performance targets are not the statutory purpose of the role. Trust account work is a separate function, and recruitment is not the defining duty.

Question 5Licensing and licence classes (branch manager requirements)

What must a person do before they can lawfully be appointed as a branch manager?

  1. Complete a branch management course after appointment
  2. Join a professional indemnity scheme approved by the Authority
  3. Hold a current agent licence and be fit and proper Correct answer.
  4. Register with the Companies Office as an officer

Explanation

To be appointed, the person must already hold an agent licence, which itself requires being a fit and proper person under the Act. Training can be completed beforehand as part of licensing, not after appointment. Company registration and insurance arrangements are not prerequisites to appointment.

Question 6Licensing and licence classes (branch manager requirements)

A branch manager resigns. What is the licensee's immediate obligation regarding that branch?

  1. Close the branch until a replacement is found
  2. Notify the Tribunal within five working days
  3. Transfer all listings to another agency
  4. Appoint a replacement branch manager so the branch continues to have one Correct answer.

Explanation

Because every branch must have a branch manager, the licensee must arrange a replacement so the branch is not left without one. Closing the branch is not a statutory requirement. Listings are not transferred to another agency, and notification to the Tribunal is not the mechanism involved.

Question 7Licensing and licence classes (branch manager requirements)

Which licence class authorises its holder to carry out real estate agency work under the supervision of an agent but does not permit holding the branch manager role?

  1. Branch manager licence
  2. Company licence
  3. Salesperson licence Correct answer.
  4. Agent licence

Explanation

A salesperson licence allows the holder to do agency work under supervision, but it does not authorise acting as an agent or branch manager. There is no standalone branch manager or company licence class in the Act's scheme, which comprises agent and salesperson licences.

Question 8Licensing and licence classes (branch manager requirements)

Which body administers the licensing regime that a branch manager operates under?

  1. The Real Estate Agents Authority Correct answer.
  2. The Disciplinary Tribunal
  3. The Companies Office
  4. The Ministry of Business, Innovation and Employment

Explanation

The Real Estate Agents Authority administers the licensing regime under the Real Estate Agents Act 2008, including licensing and complaints. The Tribunal is a separate disciplinary body, and neither the Ministry nor the Companies Office administers real estate licensing.

Question 9Licensing and licence classes (branch manager requirements)

A salesperson at a branch repeatedly fails to disclose a known defect in a property. The branch manager becomes aware of the pattern. What is the manager's most appropriate response?

  1. Supervise and correct the conduct, and address it through the agency's supervision systems Correct answer.
  2. Ignore it because each salesperson is individually licensed
  3. Transfer the salesperson to another branch without further action
  4. Immediately lay a charge with the Tribunal

Explanation

The branch manager is responsible for supervising the branch's agency work and must act on conduct that breaches the Act, including through supervision, training and internal processes. Individual licensing does not displace the manager's supervisory duty. Only the Authority can bring complaints to the Tribunal, and moving the person elsewhere does not discharge the duty.

Question 10Licensing and licence classes (branch manager requirements)

An agent wants to appoint a highly experienced salesperson as branch manager while that person's agent licence application is pending. Is this permitted?

  1. No, because the appointee must already hold an agent licence Correct answer.
  2. Yes, if the agent supervises the branch personally in the interim
  3. No, unless the Authority grants a temporary exemption
  4. Yes, provided the salesperson has more than five years' experience

Explanation

A branch manager must hold an agent licence at the time of appointment, so a pending application is insufficient. Experience alone does not substitute for the correct licence class. The Authority does not issue temporary exemptions for this purpose.

Question 11Licensing and licence classes (branch manager requirements)

A branch manager is also a shareholder and director of the company that holds the agency licence. How does this affect the branch manager appointment?

  1. It converts the branch into a head office automatically
  2. It requires approval from the Disciplinary Tribunal
  3. It is permitted, provided the person holds an agent licence and is appointed to the branch Correct answer.
  4. It is prohibited because the roles must be held by different people

Explanation

The Act does not require the branch manager to be separate from the company's owners or directors. What matters is that the appointee holds an agent licence and is properly appointed to manage the branch. Tribunal approval and automatic changes to office status are not part of the regime.

Question 12Licensing and licence classes (branch manager requirements)

Which situation most clearly shows a licensee failing to comply with branch manager requirements?

  1. The branch manager takes annual leave for three weeks
  2. The branch manager delegates open-home duties to salespersons
  3. The licensee appoints a branch manager who also works at another agency's branch
  4. The licensee opens a new branch and trades for two months before appointing a manager Correct answer.

Explanation

A branch must have a branch manager in place, so trading at a new branch without one breaches the requirement. Annual leave and delegation of tasks do not remove the appointment. A manager working elsewhere raises supervision concerns but the clearest breach is the unfilled position.

Question 13Licensing and licence classes (branch manager requirements)

A branch manager wishes to spend most of the working week at a different branch operated by the same licensee. What is the key concern?

  1. The manager must personally supervise the branch they are appointed to Correct answer.
  2. The manager would need a second agent licence
  3. The Authority must approve all inter-branch travel
  4. The other branch must appoint the manager as a salesperson

Explanation

The branch manager is appointed to a specific branch and must provide effective day-to-day supervision there. Being absent for most of the week undermines that supervisory role. No second licence or Authority approval for travel is required, and the manager would not be appointed as a salesperson.

Question 14Licensing and licence classes (branch manager requirements)

A licensee operates a branch where the appointed branch manager is on extended sick leave. Which approach best meets the statutory requirement?

  1. Appoint another suitably licensed person as branch manager for the branch Correct answer.
  2. Suspend all agency work indefinitely
  3. Leave the branch unsupervised until the manager returns
  4. Ask the salespersons to self-certify their own compliance

Explanation

The branch must continue to have a branch manager, so the licensee should appoint another person who holds an agent licence to that role. Leaving the branch without a manager breaches the requirement. Self-certification by salespersons does not substitute for supervision, and indefinite suspension is unnecessary.

Question 15Licensing and licence classes (branch manager requirements)

Which document most directly establishes that a person is authorised to act as a branch manager?

  1. An employment agreement signed by the salesperson
  2. A client care and conduct agreement
  3. A certificate of incorporation for the agency
  4. The person's current agent licence Correct answer.

Explanation

The authority to act as a branch manager flows from holding a current agent licence together with the appointment to the branch. An employment agreement or company document does not confer licensing authority. Client care documents govern the agency relationship with clients, not the manager's licence status.

Question 16Licensing and licence classes (branch manager requirements)

A salesperson at a branch wants to become the branch manager of a small satellite office. What is the minimum licensing step required?

  1. Obtain an agent licence Correct answer.
  2. Obtain written consent from the landlord
  3. Complete an additional salesperson endorsement
  4. Register the office as a separate company

Explanation

Because branch managers must hold an agent licence, the salesperson must first obtain that licence class. Salesperson endorsements do not exist as a route to management, and company registration or landlord consent are irrelevant to licensing.

Question 17Licensing and licence classes (branch manager requirements)

Which statement about the branch manager's accountability for salespersons' conduct is most accurate?

  1. The manager is accountable only for financial performance of the branch
  2. The manager is accountable only for conduct they personally witnessed
  3. The manager's accountability ends once a salesperson is fully licensed
  4. The manager must ensure the branch operates in accordance with the Act and supervise its salespersons Correct answer.

Explanation

A branch manager must ensure the branch's agency work complies with the Act and supervise the salespersons carrying it out. Accountability is not limited to witnessed conduct or to financial results. A salesperson holding a licence does not remove the manager's supervisory duty.

Question 18Licensing and licence classes (branch manager requirements)

An agent licensee personally manages one office and appoints a branch manager for a second office. Which statement is correct?

  1. The office managed personally by the agent does not need a separate branch manager Correct answer.
  2. Both offices must share a single branch manager
  3. The personally managed office also requires a separate branch manager
  4. The second office needs a manager only if it exceeds five staff

Explanation

Where the agent licensee personally manages an office, that office is not a branch requiring its own branch manager. Each other office is a branch and must have an appointed manager. Offices cannot share a single manager, and staff numbers do not determine the requirement.

Question 19Licensing and licence classes (branch manager requirements)

A branch manager is unsure whether a new advertising practice complies with the Act. What is the most appropriate professional step?

  1. Check the applicable rules and guidance and ensure the practice complies before it is used Correct answer.
  2. Proceed because the branch manager holds an agent licence
  3. Wait for a complaint before reviewing the practice
  4. Delegate the decision to the newest salesperson

Explanation

The branch manager is responsible for ensuring the branch's work complies with the Act, which requires checking the relevant rules and guidance before adopting a practice. Holding a licence does not automatically make any practice compliant. Delegating the decision or waiting for a complaint fails the supervisory duty.

Question 20Licensing and licence classes (branch manager requirements)

Which circumstance would disqualify a person from being appointed as a branch manager even if they hold an agent licence?

  1. They are not a fit and proper person, for example due to a relevant conviction Correct answer.
  2. They work part-time rather than full-time
  3. They have never sold a residential property
  4. They have less than one year of experience in real estate

Explanation

Holding an agent licence requires being a fit and proper person, and losing that status undermines eligibility for the role. Experience length, working hours and property-type experience are not statutory disqualifiers. A relevant conviction can affect fitness and therefore the ability to hold the licence and the appointment.

Question 21Licensing and licence classes (branch manager requirements)

A licensee appoints a branch manager who then allows a salesperson to sign agency agreements without the manager reviewing the agency's supervision arrangements. Which duty has the manager most directly failed?

  1. The duty to reconcile the trust account
  2. The duty to obtain professional indemnity insurance
  3. The duty to register the branch with the Companies Office
  4. The duty to supervise the branch's agency work Correct answer.

Explanation

The branch manager's central duty is to supervise the branch's agency work so that it is carried out properly under the Act. Trust account reconciliation, company registration and insurance are separate matters. Allowing unsupervised signing of agency agreements points directly to a supervision failure.

Question 22Licensing and licence classes (branch manager requirements)

A licensee operates a branch through a company structure. The sole director holds an agent licence but works from home and visits the branch monthly. What is the most significant compliance risk?

  1. The company cannot lawfully hold an agency licence
  2. The branch may lack effective day-to-day supervision by an appointed branch manager Correct answer.
  3. The salespersons must each obtain agent licences
  4. The director's agent licence expires automatically on incorporation

Explanation

Even where a director holds an agent licence, the branch needs an appointed branch manager providing effective day-to-day supervision. Monthly visits from a remote director are unlikely to meet that standard. Incorporation does not expire licences, companies can hold agency licences, and salespersons do not need agent licences.

Question 23Licensing and licence classes (branch manager requirements)

A branch manager goes on leave and asks a senior salesperson to 'act as manager' for six weeks. Which statement is correct?

  1. The arrangement is valid only if the leave is under four weeks
  2. The arrangement does not satisfy the requirement because the acting person must hold an agent licence and be appointed Correct answer.
  3. The arrangement is valid because the salesperson is senior
  4. The arrangement is valid if the salesperson is paid a manager's salary

Explanation

Acting in the branch manager role requires holding an agent licence and being properly appointed to the branch; seniority or pay does not substitute. The length of the leave does not change the licensing requirement. A salesperson licence does not authorise the management role.

Question 24Licensing and licence classes (branch manager requirements)

A licensee wants one person to be branch manager of two branches in the same city. What is the correct analysis?

  1. Prohibited, because a person may hold only one agent licence
  2. Permitted, because each branch must have its own appointed branch manager Correct answer.
  3. Prohibited, because branch managers cannot manage city branches
  4. Permitted, because both branches are in the same city

Explanation

Each branch must have its own branch manager, so a single person cannot serve as the appointed manager for two separate branches. Geographic proximity does not merge them into one branch. There is no rule limiting a person to one agent licence or barring management of city branches.

Question 25Licensing and licence classes (branch manager requirements)

During an Authority investigation, a branch manager claims they were unaware of a salesperson's repeated breaches because they trusted the salesperson. How is this likely to be assessed?

  1. It excuses the manager only if the breaches were minor
  2. It transfers liability entirely to the salesperson's own licence
  3. It fully excuses the manager because trust is a reasonable basis for supervision
  4. It is unlikely to excuse the manager, because supervision requires active oversight of the branch's work Correct answer.

Explanation

A branch manager must actively supervise the branch's agency work rather than rely on trust alone. A claim of ignorance following repeated breaches is unlikely to discharge that duty. The salesperson's own licence does not absorb the manager's supervisory responsibility, and the seriousness of breaches does not create an excuse.

Question 26Licensing and licence classes (branch manager requirements)

Under the New Zealand real estate licensing regime, what does a company need before it can lawfully carry out real estate agency work through a branch office?

  1. Written approval from the local council for the branch premises
  2. A salesperson licence held by each director of the company
  3. Registration with the Companies Office as a real estate agency
  4. A company licence together with an appointed branch manager for that branch Correct answer.

Explanation

Real estate agency work may only be carried out by a licensed agent, and a company must hold a company licence with a branch manager appointed for each branch. The branch manager is the individual through whom the licensee's supervisory obligations at that branch are discharged. Registration or council approval does not confer any licensing authority.

Question 27Licensing and licence classes (branch manager requirements)

What is the core statutory function of a branch manager in relation to the salespersons at their branch?

  1. To guarantee the financial performance of the branch to the licensee
  2. To audit the licensee's trust account independently of the licensee
  3. To supervise the branch's real estate agency work and ensure it is carried out in accordance with the Act and the licence conditions Correct answer.
  4. To personally complete every agency agreement before it is signed

Explanation

A branch manager is appointed to supervise the agency work carried out at the branch, including overseeing salespersons and ensuring compliance with the Act, regulations and licence conditions. The role is supervisory and compliance-focused rather than a personal guarantee of every transaction or of profitability. Independent trust account audit is a separate function.

Question 28Licensing and licence classes (branch manager requirements)

A licensee holds an agent licence and wishes to open a new branch office staffed by three salespersons. Which licensing step is required before agency work begins at that branch?

  1. Transfer one salesperson's licence to the branch address
  2. Appoint a suitably qualified branch manager and have the branch recorded on the licence Correct answer.
  3. Obtain a separate company licence for the branch
  4. Notify the local REINZ branch of the opening date

Explanation

Each branch of a licensee must have an appointed branch manager who holds an agent licence, and the branch must be recorded on the licence. The branch manager is the person through whom supervision at that location is delivered. Neither industry body notification nor transferring a salesperson licence satisfies this requirement.

Question 29Licensing and licence classes (branch manager requirements)

Which person is eligible to be appointed as a branch manager of a real estate branch?

  1. A licensed salesperson with ten years of experience
  2. An unlicensed office administrator who manages staff
  3. A person who holds a current agent licence and meets the fit and proper person standard Correct answer.
  4. A former branch manager whose licence was suspended last year

Explanation

Only a person holding a current agent licence, and who satisfies the Registrar that they are fit and proper, may be appointed as a branch manager. Experience alone does not confer the required licence class. A suspended licence means the person is not currently licensed to act.

Question 30Licensing and licence classes (branch manager requirements)

A branch manager is appointed for a branch, but the licensee's head office also carries out agency work from that same address. How should the licensing records be arranged?

  1. The salespersons at the shared address must each hold agent licences
  2. Only the head office needs to be recorded, because it is the principal place of business
  3. The branch must be recorded as a branch with its own appointed branch manager Correct answer.
  4. The branch is exempt from branch manager requirements because it shares an address

Explanation

Where a licensee carries out agency work at a place other than its principal office, that place is a branch and must be recorded with an appointed branch manager. Sharing an address with head office does not remove the requirement for supervision at that location. Individual salespersons do not need agent licences to work under supervision.

Question 31Licensing and licence classes (branch manager requirements)

A branch manager is appointed to a branch but lives in another city and visits only once a month. Which statement best reflects the licensing position?

  1. The arrangement is lawful because the branch manager holds an agent licence
  2. This is acceptable provided the salespersons hold current licences
  3. The branch manager must be able to properly supervise the branch's agency work, and a token monthly visit is unlikely to satisfy that duty Correct answer.
  4. This is acceptable if the licensee's director visits weekly instead

Explanation

Appointment as branch manager carries an ongoing supervisory duty, and the person must be able to genuinely oversee the agency work at that branch. Physical presence is not prescribed in hours, but a token monthly visit where staff work daily is unlikely to meet the standard. Holding the correct licence does not by itself discharge the duty.

Question 32Licensing and licence classes (branch manager requirements)

A branch manager learns that a salesperson at their branch has been accepting gifts from a client whose listing the salesperson is marketing. What is the branch manager's most appropriate first step?

  1. Investigate the circumstances and ensure the conduct is addressed under the licensee's policies and the Act Correct answer.
  2. Ignore the matter unless the client formally complains
  3. Immediately dismiss the salesperson without further inquiry
  4. Refer the matter to the local council's trading standards team

Explanation

The branch manager is responsible for supervising the branch's agency work and must inquire into conduct that may breach the Act or the licensee's policies. Investigating first allows the manager to decide whether disclosure, remediation or escalation to the licensee is needed. Doing nothing or acting without inquiry fails the supervisory duty.

Question 33Licensing and licence classes (branch manager requirements)

A licensee's branch manager resigns and the branch continues operating for several weeks with no replacement appointed. Which statement is correct?

  1. The salespersons may elect one of their number to act as branch manager
  2. The branch may operate only if all salespersons become agent licensees
  3. The branch may continue indefinitely because the licensee holds an agent licence
  4. The licensee must appoint a replacement branch manager promptly, and continued operation without one breaches licensing requirements Correct answer.

Explanation

A branch must have an appointed branch manager for agency work to be lawfully carried out there. The licensee is responsible for ensuring a replacement is appointed promptly and the licensing record updated. Salespersons cannot confer branch manager authority on one another, and the licensee's own licence does not remove the branch requirement.

Question 34Licensing and licence classes (branch manager requirements)

A branch manager wants to check whether a proposed commission-sharing arrangement complies with the licensing rules. Which action best reflects their compliance role?

  1. Wait until the first transaction settles to see whether any issue arises
  2. Proceed because the arrangement is common in the industry
  3. Seek guidance from the licensee and, where needed, the regulator before implementing the arrangement Correct answer.
  4. Ask the salesperson involved to confirm it is lawful

Explanation

A branch manager must ensure agency work at the branch complies with the Act and licence conditions, which includes checking uncertain arrangements before they are implemented. Escalating to the licensee and, if necessary, the regulator is the prudent compliance path. Industry practice or a salesperson's assurance is not a legal basis.

Question 35Licensing and licence classes (branch manager requirements)

Which best describes the relationship between a branch manager and the licensee that holds the agency licence?

  1. The branch manager is an independent licensee operating under a franchise arrangement
  2. The branch manager has no accountability to the licensee once appointed
  3. The branch manager replaces the licensee for all purposes at the branch
  4. The branch manager acts on behalf of the licensee and is accountable to it for supervision of the branch Correct answer.

Explanation

The branch manager is appointed by the licensee to supervise the branch on its behalf and remains accountable to the licensee for that supervision. The branch manager does not become an independent licensee or displace the licensee's overall responsibilities. The appointment is a delegation of supervisory function, not a transfer of the licence.

Question 36Licensing and licence classes (branch manager requirements)

A branch manager holds an agent licence but is also employed as a salesperson at the same branch, receiving only salesperson-level pay and taking listings personally. What is the main licensing concern?

  1. The person must surrender their agent licence to work as a salesperson
  2. There is no concern because the person holds an agent licence
  3. The person must obtain a separate company licence
  4. The person may be acting as a salesperson while purporting to supervise, which risks inadequate supervision of the branch Correct answer.

Explanation

Holding an agent licence does not prevent a person from doing sales work, but the branch manager role requires genuine supervision of the branch's agency work. Where the person's own sales activity dominates and oversight is absent, the supervisory obligation is not being met. The licence class itself is not the problem.

Question 37Licensing and licence classes (branch manager requirements)

A branch manager is asked to supervise a second location operated by the same licensee but has not been appointed for it. What is the correct position?

  1. The branch manager's appointment automatically covers all branches of the licensee
  2. The second location may operate without a branch manager if it is small
  3. The salespersons at the second location may supervise each other
  4. The second location must have its own appointed branch manager recorded on the licence Correct answer.

Explanation

Each branch requires a branch manager appointed and recorded for that branch; appointment to one branch does not extend automatically to others. The licensee must make a separate appointment for the second location. Branch size and informal peer supervision do not satisfy the requirement.

Question 38Licensing and licence classes (branch manager requirements)

An agent licensee operates a single office and personally oversees all agency work there. Which statement about branch manager requirements is correct?

  1. The office must be closed unless a second agent licensee is employed
  2. The licensee must still appoint a separate branch manager for the office
  3. The licensee must convert the office into a branch with a salesperson manager
  4. The licensee's own agent licence and personal supervision can satisfy the branch manager requirement for that office Correct answer.

Explanation

Where the licensee is an individual agent who personally supervises the agency work at the office, that licensee can fulfil the branch manager function for that location. A separate appointment is not required in that situation. The requirement bites where the licensee does not personally manage the branch.

Question 39Licensing and licence classes (branch manager requirements)

A licensee wants to appoint a branch manager who holds a current agent licence but is currently subject to an unresolved disciplinary complaint alleging dishonest conduct. What is the correct analysis?

  1. The complaint is irrelevant because it has not been proven
  2. The appointment is automatically valid because the licence is current
  3. The appointment is valid provided the branch manager discloses it to salespersons
  4. The licensee should assess whether the person remains a fit and proper person, and the unresolved complaint is highly relevant Correct answer.

Explanation

Fitness and propriety is an ongoing requirement, and an unresolved complaint alleging dishonesty is directly relevant to whether the person should hold a supervisory role. The licensee should not treat a current licence as conclusive. Disclosure to salespersons does not resolve the fit and proper question.

Question 40Licensing and licence classes (branch manager requirements)

A branch manager is on approved leave and the licensee appoints an agent licensee from another branch as temporary branch manager for that branch. Which statement is correct?

  1. The temporary appointment is effective only if the salespersons consent
  2. The branch must suspend all agency work during the leave period
  3. The temporary appointment is unnecessary because the branch manager remains responsible while on leave
  4. A temporary branch manager must be appointed and recorded for the branch while the substantive manager is absent Correct answer.

Explanation

A branch must have an appointed branch manager while agency work continues, so where the substantive manager will be absent a temporary appointment of a licensed agent should be made and recorded. The substantive manager's responsibility does not substitute for an appointed person on site. Suspending all work is not required if a proper appointment is made.

Question 41Supervision requirements

Under the Real Estate Agents Act 2008, which duty applies specifically to a branch manager who is not the licensee operating the branch?

  1. Holding the client's money in a branch trust account without audit
  2. Supervising the branch's salespersons and ensuring they comply with the Act and the Code of Conduct Correct answer.
  3. Issuing licences to newly qualified salespersons in the branch
  4. Personally listing and selling every property that the branch handles

Explanation

A branch manager is a licensee appointed to supervise the branch's salespersons, ensuring they carry out work in accordance with the Act, regulations and Code of Conduct. The branch manager does not take over every transaction and does not perform licensing or trust account audit functions, which sit with the Authority and the licensee operating the trust account.

Question 42Supervision requirements

A branch manager wants to check whether a salesperson's conduct during a listing presentation met the Code of Conduct. What is the most appropriate supervisory action?

  1. Wait for a complaint to be lodged with the Authority before reviewing the matter
  2. Review the agency agreement, disclosure records and file notes against the Code's standards Correct answer.
  3. Rely on the salesperson's own assurance that the Code was followed
  4. Ask another salesperson whether the presentation went well

Explanation

Supervision requires the branch manager to actively verify compliance using the records that evidence the transaction, such as the agency agreement, disclosure and file notes. Waiting for a complaint, deferring to a colleague's impression, or accepting self-certification does not discharge the supervisory duty.

Question 43Supervision requirements

Which statement best describes how a branch manager should handle a salesperson who repeatedly fails to complete required continuing education?

  1. Suspend the salesperson's licence until the education is completed
  2. Record the issue, discuss it with the salesperson and escalate within the agency if it continues Correct answer.
  3. Ignore it because continuing education is a personal matter for each licensee
  4. Report it to the Authority immediately as misconduct without discussion

Explanation

A branch manager should document performance issues, address them directly with the salesperson, and escalate through the agency's processes where the issue persists. Continuing education is a licensing requirement, so it is not a purely personal matter, but the branch manager cannot suspend a licence, which only the Authority can do.

Question 44Supervision requirements

A branch manager is responsible for ensuring salespersons comply with the Code of Conduct. Which of the following best reflects the branch manager's own obligation under the Act?

  1. The branch manager is excused from compliance if salespersons acted without instruction
  2. The branch manager must also comply with the Act and the Code personally Correct answer.
  3. The branch manager's compliance is delegated to the salespersons they supervise
  4. The branch manager only needs to comply with the Code when dealing with clients directly

Explanation

A branch manager is a licensee and therefore personally bound by the Act and the Code of Conduct, in addition to supervising others. Compliance cannot be delegated away or excused by a salesperson's unauthorised conduct.

Question 45Supervision requirements

A salesperson at the branch discloses confidential vendor information to a friend outside the agency. What is the branch manager's most appropriate first response?

  1. Immediately cancel the salesperson's licence
  2. Investigate the facts, document findings and address the breach through the agency's disciplinary process Correct answer.
  3. Discuss the matter with the vendor and ask them to decide the outcome
  4. Take no action because no client complaint has been received

Explanation

The branch manager should investigate and document the alleged breach and then apply the agency's internal process, which may include escalation to the Authority where warranted. The branch manager cannot cancel a licence, and asking the vendor to determine the outcome shifts a supervisory responsibility onto the client.

Question 46Supervision requirements

Which record is most useful for a branch manager to evidence ongoing supervision of a salesperson's work?

  1. A copy of the branch's marketing brochure
  2. A list of the salesperson's past clients
  3. A signed employment agreement stored off-site
  4. A dated supervision log noting file reviews, feedback given and follow-up actions Correct answer.

Explanation

A dated supervision log that records what was reviewed, what feedback was given and what follow-up occurred demonstrates active and continuous supervision. The other records may exist but do not evidence supervisory activity.

Question 47Supervision requirements

A new salesperson joins the branch with limited experience. What is the branch manager's most appropriate supervisory step?

  1. Allow the salesperson to work unsupervised until a complaint arises
  2. Assign the salesperson only to administrative tasks indefinitely
  3. Provide induction on agency processes and arrange closer file review and mentoring Correct answer.
  4. Require the salesperson to find their own mentor outside the agency

Explanation

Induction, structured mentoring and closer file review are proportionate supervisory responses to an inexperienced licensee. Leaving the salesperson unsupervised until a complaint arises, or permanently restricting them to administration, does not meet the supervision duty.

Question 48Supervision requirements

Which statement about the branch manager's relationship with the licensee operating the branch is most accurate?

  1. The branch manager is entirely independent and need not report to anyone
  2. The branch manager replaces the licensee's obligations under the Act
  3. The branch manager reports to the licensee and is accountable for supervising the branch's salespersons Correct answer.
  4. The branch manager has authority to vary the licensee's licence conditions

Explanation

The branch manager is appointed by and accountable to the licensee operating the branch, and supervises the branch's salespersons on the licensee's behalf. The branch manager does not replace the licensee's obligations or have power to vary licence conditions.

Question 49Supervision requirements

A salesperson at the branch wants to act for both the vendor and a buyer on the same property. What should the branch manager do?

  1. Decline any dual agency because it is prohibited in all circumstances
  2. Ensure the salesperson follows the required disclosure and informed consent process before proceeding Correct answer.
  3. Tell the salesperson to keep the dual role confidential from both parties
  4. Approve the arrangement without further steps because the salesperson is experienced

Explanation

Where a licensee acts for more than one party, the Code requires timely written disclosure and informed consent from the parties before proceeding. The branch manager's role is to ensure that process is followed, not to bypass it, hide it, or impose a blanket ban.

Question 50Supervision requirements

A branch manager is reviewing a salesperson's agency agreement and finds the commission wording is unclear. What is the most appropriate action?

  1. Note the issue but wait until the agreement is signed to correct it
  2. Approve the agreement because commission terms are a matter for the parties
  3. Ask the salesperson to amend the agreement so the commission and fees are clearly stated before signing Correct answer.
  4. Refer the matter to the buyer for a decision

Explanation

The Code requires agency agreements to clearly set out fees and commission, so the branch manager should require correction before the client signs. Approving unclear terms, deferring correction until after signing, or involving the buyer in the vendor's agreement does not meet the supervision standard.