Unsupervised After the Branch Manager Walks Out
Hine has held a salesperson licence for four months and works at Coastal Realty, a licensed agency. On Friday her branch manager resigns without notice. The company director, who is not a licensed real estate agent, tells Hine to 'keep everything running' because she is licensed. Three residential listings are live. One property at 14 Marine Parade is advertised for auction on Wednesday; the auctioneer has been booked. A renewal of a sole agency agreement for another vendor is due Monday, and the director asks Hine to sign it as 'agent'. A buyer has also left a $15,000 cash deposit in the office safe for a property under contract, and the office manager is on leave. Hine has not been appointed as a branch manager and no other licensed agent is available. She is worried about the auction and the deposit. The director says the company's licence covers everything.
1. What are Hine's obligations once her supervising agent resigns, and can she rely on the director's assurance?
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Hine cannot rely on the director's assurance. Under the Real Estate Agents Act 2008, a salesperson must carry out real estate agency work under the supervision of a licensed agent or branch manager. The company's licence does not turn an unlicensed director into a supervisor, and Hine has not been appointed as a branch manager.
Her obligation is to stop doing agency work until a licensed supervisor is appointed. That includes appraisals, signing or renewing agency agreements, marketing instructions, presenting offers and conducting the auction. She may continue purely administrative tasks such as filing or answering the phone, but she must not give advice or act on listings.
She should put her concerns in writing to the director, contact the Authority for guidance, and keep a record of what she was told and what she refused to do. Continuing unsupervised would expose her to disciplinary action, expose the agency to licence risk, and leave vendors and buyers without the protection the Act requires. The director's instruction is not a defence.
2. What should happen to the Wednesday auction and the $15,000 cash deposit in the meantime?
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The auction should not proceed unless a licensed agent or branch manager is supervising the agency work. The agency must either appoint a supervisor before Wednesday or arrange for another appropriately licensed person to take responsibility. If that cannot be done, the auction should be postponed and the vendor and all registered bidders notified in writing. Hine should not run the auction simply because an auctioneer has been booked; the booking does not cure the supervision gap.
The $15,000 cash is client money. It must be receipted in the agency's name and paid promptly into the agency's trust account, not left in the office safe and not paid into a general operating account. If Hine cannot access the trust account because no supervisor is available, she should escalate to the director and the agency's accountant immediately and ensure the cash is securely held and recorded until it can be banked correctly. She must not use any part of it, including for expenses or commission.
3. If the director insists that Hine sign the agency agreement renewal as 'agent', what should she do?
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She should refuse. Signing as 'agent' would misrepresent her licence class and the level of authority she holds. A salesperson can sign documents only in accordance with the supervision arrangements and the agency's procedures; she cannot hold herself out as the agent for the business.
She should explain the legal risk to the director, offer to prepare the renewal for a licensed agent to review and sign, and document the refusal. If the director continues to pressure her, she should escalate the matter to the Authority. Signing would not be excused by the director's instruction, and it could mislead the vendor about who is responsible for the agency work.