Marketing and disclosure obligations
What the exam tests
This domain tests accurate advertising and timely disclosure. The standard is whether a reasonable buyer could be misled, not whether the licensee intended to mislead.
Core rules
- Have written authority from the client before marketing a property.
- Advertising must be accurate and not overstate features, zoning, permits, floor area or views.
- Disclose known defects and material information that could affect a buyer's decision.
- Disclose conflicts of interest and any commission, referral fee or rebate.
- Do not advertise a price or method of sale in a way that creates a false impression.
- Keep records of instructions and approvals.
Worked example
A branch manager is asked to advertise 'fully consented home and income' for a property with an unconsented sleepout. The file has no council record. The correct approach is to verify or change the wording to 'sleepout (unconsented)' and advise the vendor. Advertising the original wording risks misleading conduct and a complaint against both the salesperson and the supervising branch manager.
Traps
- Relying on the vendor's assurance without checking council records.
- Using 'offers over' or 'price by negotiation' to hide a price the vendor would accept.
- Omitting a known leak or flood history because the vendor asked.
- Forgetting to disclose a referral arrangement with a builder or solicitor.