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NZ Certificate in Real Estate (Salesperson, Level 4) study materials
NZ Certificate in Real Estate (Salesperson, Level 4) study resources

NZ Certificate in Real Estate (Salesperson, Level 4) practice questions

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Question 1Real Estate Agents Act 2008 and regulatory framework

Under the Real Estate Agents Act 2008, which body is responsible for licensing salespersons and issuing licences to real estate agents?

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

Explanation

The Real Estate Agents Authority (REAA) is the independent Crown entity established by the Act to administer the licensing regime, including issuing licences and issuing salesperson certificates. The REINZ is an industry body, the Tribunal hears complaints, and MBIE does not run the licensing scheme.

Question 2Real Estate Agents Act 2008 and regulatory framework

A salesperson is issued a salesperson's certificate and works under the supervision of an agent. Which statement correctly describes the relationship between the certificate and the licence?

  1. The certificate allows the salesperson to operate independently once they have two years' experience
  2. The salesperson must hold both a certificate and a licence in their own name
  3. The salesperson's certificate authorises work only while an agent's licence is in force and the salesperson is engaged by that agent Correct answer.
  4. The certificate is issued by the Tribunal after a competency hearing

Explanation

A salesperson is not licensed directly; they hold a salesperson's certificate and may act only on behalf of, and under the supervision of, a licensed agent who employs or engages them. The certificate has no independent standing separate from that relationship.

Question 3Real Estate Agents Act 2008 and regulatory framework

Which conduct best illustrates the fiduciary duty an agent owes to a client under the Act and the Code of Conduct?

  1. Disclosing the vendor's reserve to all prospective buyers to encourage competition
  2. Setting the listing price without consulting the vendor
  3. Referring every buyer enquiry to a mortgage broker owned by the agent without disclosure
  4. Acting in the client's best interests and avoiding conflicts between the client's interests and the agent's own Correct answer.

Explanation

The Act's fiduciary obligations require an agent to act in the client's best interests, obey instructions, and avoid or disclose conflicts of interest. Undisclosed self-dealing and leaking confidential instructions both breach those obligations.

Question 4Real Estate Agents Act 2008 and regulatory framework

The Real Estate Agents Act 2008 requires written offers to be presented to the client. Which statement about this duty is correct?

  1. Offers may be withheld if the agent considers them unrealistic
  2. Presentation can wait until the agency agreement expires
  3. Only offers above the asking price need be presented
  4. The agent must present every written offer to the client promptly unless the client instructs otherwise in writing Correct answer.

Explanation

The Act requires an agent to present all written offers to the client as soon as practicable, unless the client has given written instructions to the contrary. The agent does not screen offers on their own judgment of realism.

Question 5Real Estate Agents Act 2008 and regulatory framework

An agency agreement is signed for a sole agency. Which statement accurately reflects the Act's requirements for agency agreements?

  1. A sole agency agreement cannot exceed 90 days unless the client agrees in writing to extend it Correct answer.
  2. A sole agency agreement has no statutory time limit
  3. A sole agency agreement may be for any duration the parties agree
  4. A sole agency agreement must be for exactly 12 months

Explanation

The Act limits the term of a sole agency agreement to 90 days, after which it continues only if the client agrees in writing to extend it. This protects clients from being locked into long sole agency arrangements.

Question 6Real Estate Agents Act 2008 and regulatory framework

Which matter falls within the jurisdiction of the Real Estate Agents Disciplinary Tribunal?

  1. Issuing salesperson certificates to new entrants
  2. Hearing complaints about a licensee's conduct referred by the Authority Correct answer.
  3. Prosecuting criminal fraud in property transactions
  4. Setting the commission rate for a disputed transaction

Explanation

The Tribunal hears disciplinary charges about licensee conduct that the Authority refers to it, and can impose penalties such as fines, suspension, or cancellation. It does not set commissions, issue certificates, or handle criminal prosecutions.

Question 7Real Estate Agents Act 2008 and regulatory framework

A licensee receives money from a buyer as a deposit on a sale. Which statement about handling client money is correct?

  1. The licensee must pay the money into a trust account or as directed by the client, and account for it properly Correct answer.
  2. The licensee may hold the money without a receipt if the buyer agrees
  3. The licensee may use the deposit for marketing costs until settlement
  4. The licensee may hold the deposit in their personal account if receipted

Explanation

Client money must be paid into a trust account or dealt with as the client directs, and the licensee must keep proper records and receipts. Using client funds for the agency's own costs is a serious breach.

Question 8Real Estate Agents Act 2008 and regulatory framework

Under the Act, when must a licensee disclose that they are acting for both the vendor and a buyer in the same transaction?

  1. Only if the buyer asks directly
  2. After the sale is confirmed at settlement
  3. Never, because dual agency is prohibited outright
  4. Before the buyer makes an offer, in writing, with the knowledge and consent of both parties Correct answer.

Explanation

Where a licensee acts for more than one party, they must disclose this in writing and obtain informed consent before proceeding, because the interests may conflict. Dual agency is permitted only with proper disclosure and consent.

Question 9Real Estate Agents Act 2008 and regulatory framework

A salesperson's client asks them to keep a written offer secret from the vendor's other agent. How should the salesperson respond under the Act's rules on offers?

  1. Refuse to act for the buyer entirely
  2. Present the offer only if the price exceeds the asking price
  3. Comply, because client instructions always override statutory duties
  4. Explain that all written offers must be presented to the vendor promptly and cannot be suppressed Correct answer.

Explanation

The statutory duty to present written offers to the client promptly cannot be overridden by an instruction to conceal an offer from the vendor. The salesperson should explain the obligation and act accordingly.

Question 10Real Estate Agents Act 2008 and regulatory framework

Which statement best describes the role of the Code of Conduct for licensees under the Act?

  1. It applies only to agents, not salespersons
  2. It sets mandatory standards of professional conduct that the Tribunal can enforce Correct answer.
  3. It replaces the Act in disciplinary proceedings
  4. It is a set of voluntary guidelines with no disciplinary consequence

Explanation

The Code of Conduct is made under the Act and sets mandatory standards for all licensees, including salespersons. Breaching it can found a disciplinary charge before the Tribunal.

Question 11Real Estate Agents Act 2008 and regulatory framework

An agent's licence is cancelled by the Tribunal. Which consequence follows for a salesperson engaged by that agent?

  1. The salesperson's certificate automatically converts to a full licence
  2. The salesperson's certificate is automatically cancelled by the Tribunal
  3. The salesperson can no longer act on behalf of that agent and must arrange alternative engagement with a licensed agent Correct answer.
  4. The salesperson may continue trading independently until their certificate expires

Explanation

A salesperson can only act under the supervision of a licensed agent, so the loss of that agent's licence ends their authority to act for that agency. They must be engaged by another licensed agent to continue.

Question 12Real Estate Agents Act 2008 and regulatory framework

A licensee is offered a gift by a buyer to prioritise that buyer's offer. What is the correct approach under the Code of Conduct?

  1. Accept the gift if it is under a modest value
  2. Accept the gift but disclose it to the vendor
  3. Decline the gift because it creates a conflict of interest and could compromise the duty to act fairly Correct answer.
  4. Accept the gift and keep it confidential

Explanation

Accepting a benefit to favour one party breaches the duty to act fairly and in the client's best interests, and creates an undisclosed conflict. The gift should be declined.

Question 13Real Estate Agents Act 2008 and regulatory framework

Which of the following is a key function of the Real Estate Agents Authority under the Act?

  1. Setting national house prices
  2. Promoting the sale of properties on behalf of vendors
  3. Negotiating commission rates on behalf of consumers
  4. Receiving and investigating complaints about licensees Correct answer.

Explanation

The Authority receives complaints, investigates them, and may refer matters to the Disciplinary Tribunal. It does not set prices, sell property, or negotiate commissions.

Question 14Real Estate Agents Act 2008 and regulatory framework

A licensee advertises a property as 'guaranteed to sell above $800,000'. Which issue does this raise under the Code of Conduct?

  1. No issue, because advertising claims are unregulated
  2. The claim is acceptable if the vendor approves it
  3. The claim is acceptable if the licensee genuinely believes it
  4. The claim may be misleading and must be accurate and not create unrealistic expectations Correct answer.

Explanation

The Code requires advertising to be accurate and not misleading, and licensees must not create unrealistic expectations about price. Vendor approval or personal belief does not cure a misleading claim.

Question 15Real Estate Agents Act 2008 and regulatory framework

A salesperson is unsure whether a property has a known leaky-building issue. What is the appropriate action under the Act's fairness requirements?

  1. Tell only the buyer who makes the highest offer
  2. Wait until a buyer asks a direct question before revealing anything
  3. Make further enquiries and disclose material information known to the licensee to prospective buyers Correct answer.
  4. Say nothing because the salesperson has no legal duty to investigate

Explanation

Licensees must deal fairly and must not mislead; where they know or should know of material defects, they should make enquiries and disclose. Silence or selective disclosure can mislead buyers.

Question 16Real Estate Agents Act 2008 and regulatory framework

Which statement correctly describes the requirement for licensees to keep records of transactions?

  1. Records may be discarded once commission is paid
  2. Records need only be kept for six months
  3. Records must be kept for at least six years and be available for inspection Correct answer.
  4. Records are optional if the transaction settled without complaint

Explanation

The Act's record-keeping rules require transaction and trust account records to be retained for at least six years and made available to the Authority on request. This supports audit and complaint investigation.

Question 17Real Estate Agents Act 2008 and regulatory framework

A licensee is convicted of a dishonesty offence. What is the most likely consequence under the Act?

  1. The Authority may suspend or cancel the licence or certificate, or the Tribunal may impose penalties Correct answer.
  2. The conviction is irrelevant if the offence was outside working hours
  3. No consequence because convictions are private matters
  4. The licensee must simply pay a small fine to the Authority

Explanation

Dishonesty convictions are relevant to fitness to hold a licence, and the Authority or Tribunal can suspend, cancel, or penalise. Timing or privacy does not remove the regulatory consequence.

Question 18Real Estate Agents Act 2008 and regulatory framework

A vendor instructs an agent to accept only offers above $900,000. A written offer of $880,000 arrives. What is the agent's correct course?

  1. Discard the offer because it is below the instructed price
  2. Present the offer to the vendor and let the vendor decide Correct answer.
  3. Tell the buyer the vendor will never accept it
  4. Accept the offer on the vendor's behalf

Explanation

The agent must present every written offer to the client as soon as practicable; the decision to accept or reject belongs to the vendor. The agent cannot discard offers or accept on the vendor's behalf.

Question 19Real Estate Agents Act 2008 and regulatory framework

Which situation is an example of an undisclosed conflict of interest that breaches the Act?

  1. An agent discloses their commission rate in the agency agreement
  2. An agent recommends a builder who is a stranger to the agent
  3. An agent's spouse owns the property being marketed and the agent does not disclose this to the buyer Correct answer.
  4. An agent refers a client to a lawyer after disclosing a referral fee

Explanation

Where a licensee or an associate has a personal interest in the property, that interest must be disclosed. Non-disclosure of a spouse's ownership is a conflict that can mislead the buyer.

Question 20Real Estate Agents Act 2008 and regulatory framework

Under the Act, what is the principal purpose of the licensing regime for salespersons?

  1. To generate revenue for the Authority
  2. To guarantee that all sales achieve the asking price
  3. To limit competition in the real estate industry
  4. To protect consumers by ensuring those who deal in real estate meet standards of competence and conduct Correct answer.

Explanation

The Act's consumer-protection purpose is served by licensing people who meet competence and conduct standards, with disciplinary consequences for breaches. It is not a competition restriction or revenue measure.

Question 21Real Estate Agents Act 2008 and regulatory framework

A licensee acting for a vendor also owns a 20% share in a property development that will benefit if the vendor sells to a particular buyer. What must the licensee do?

  1. Disclose the interest to the vendor in writing and obtain informed consent before continuing Correct answer.
  2. Resign from the agency without telling the vendor why
  3. Proceed without comment because the shareholding is a private matter
  4. Sell the property to the development company at a discount

Explanation

A material personal interest that could influence the licensee's advice must be disclosed in writing and consented to, otherwise the licensee cannot act fairly. Concealing it breaches the fiduciary duty and the Code.

Question 22Real Estate Agents Act 2008 and regulatory framework

An agent's agency agreement contains a clause allowing the agent to continue receiving commission after the agreement ends for any buyer introduced during the term. Which statement is correct under the Act?

  1. The clause is permissible only if it is clearly disclosed and the client agrees, and the agreement complies with the Act's requirements Correct answer.
  2. The clause is enforceable regardless of disclosure because commission terms are private
  3. Such a clause is void in all circumstances
  4. Such a clause can be inserted verbally at signing

Explanation

Continuing commission clauses can be valid where they are properly disclosed and agreed in the written agency agreement, which must meet the Act's content and disclosure requirements. Undisclosed or verbal terms are not enforceable in the same way.

Question 23Real Estate Agents Act 2008 and regulatory framework

A salesperson learns that a buyer intends to on-sell the property at a large profit within days. The vendor is unaware. What is the salesperson's obligation?

  1. Disclose the material information to the vendor so the vendor can make an informed decision Correct answer.
  2. Keep the information confidential because it belongs to the buyer
  3. Do nothing because on-selling is always lawful
  4. Advise the buyer to withdraw the offer

Explanation

The salesperson owes the vendor a duty of good faith and must not withhold material information that affects the vendor's decision, even where it originates with the buyer. Confidentiality to the buyer does not override the duty to the client.

Question 24Real Estate Agents Act 2008 and regulatory framework

Which statement best captures how the Act balances the Authority's investigative role with the Disciplinary Tribunal's adjudicative role?

  1. Both bodies must act jointly on every complaint before any outcome
  2. The Tribunal investigates complaints and the Authority imposes penalties
  3. The Authority both investigates and finally decides all disciplinary outcomes
  4. The Authority investigates and may refer charges, while the Tribunal independently hears and determines them Correct answer.

Explanation

The Act separates investigation (Authority) from adjudication (Tribunal) so that charges are decided by an independent body after inquiry. This separation supports procedural fairness for licensees and complainants.

Question 25Real Estate Agents Act 2008 and regulatory framework

A licensee discovers after settlement that they failed to disclose a known defect to the buyer. Which statement best reflects the regulatory position?

  1. The licensee is protected if the buyer did not ask about defects
  2. Only the vendor can be liable, not the licensee
  3. The matter is closed because settlement has occurred
  4. The licensee may still face a complaint, investigation, and disciplinary action for misleading conduct Correct answer.

Explanation

Settlement does not extinguish regulatory liability; misleading conduct by omission can ground a complaint and disciplinary action. The licensee's duty of fair dealing is independent of whether the buyer asked questions.

Question 26Real Estate Agents Act 2008 and regulatory framework

Under the Real Estate Agents Act 2008, which person must hold a licence before carrying out real estate agency work for a fee?

  1. A person who provides legal advice on a sale and purchase agreement
  2. A person who prepares a valuation report for a bank's mortgage approval
  3. A person who inspects a building for weathertightness defects
  4. A person who negotiates the sale of a residential property on behalf of a vendor Correct answer.

Explanation

Real estate agency work under the Act covers transactions in land or businesses carried out for reward, including negotiating and marketing on a client's behalf. Those activities require a licence. Valuation, legal advice and building inspection are separate regulated or professional activities outside the licensing regime.

Question 27Real Estate Agents Act 2008 and regulatory framework

What class of licence authorises a person to carry out real estate agency work under the supervision of an agent?

  1. An agent licence
  2. A company licence
  3. A salesperson licence Correct answer.
  4. A branch manager licence

Explanation

The Act establishes licence classes of agent, branch manager and salesperson. A salesperson must work under the supervision of an agent and cannot operate independently. Only the agent licence permits carrying on a real estate business without that supervisory structure.

Question 28Real Estate Agents Act 2008 and regulatory framework

Which body hears and determines disciplinary charges brought against licensees under the Real Estate Agents Act 2008?

  1. The Real Estate Agents Disciplinary Tribunal Correct answer.
  2. The Real Estate Agents Authority's licensing team
  3. The Disputes Tribunal
  4. The High Court

Explanation

The Disciplinary Tribunal is the independent body established by the Act to hear disciplinary charges referred by the Authority's Complaints Assessment Committee. It can impose penalties such as censure, suspension or cancellation. The Authority itself investigates and prosecutes but does not adjudicate charges.

Question 29Real Estate Agents Act 2008 and regulatory framework

Which document issued by the Authority sets out the standards of professional conduct that licensees must meet?

  1. The licence certificate
  2. The agency agreement
  3. The sale and purchase agreement
  4. The Code of Conduct Correct answer.

Explanation

The Code of Conduct is issued under the Act and prescribes the standards of conduct expected of licensees, including duties of honesty, disclosure and care. Breaching it can found a disciplinary charge. The other documents are transaction or licensing records, not conduct standards.

Question 30Real Estate Agents Act 2008 and regulatory framework

What is the maximum period for which a licence may be issued under the Act before renewal is required?

  1. Five years
  2. Three years
  3. Two years
  4. One year Correct answer.

Explanation

Licences under the Act are issued for a maximum term of one year and must be renewed annually, subject to continuing education and other requirements. This annual cycle lets the Authority confirm ongoing competence and fitness. Longer terms do not apply to individual licences.

Question 31Real Estate Agents Act 2008 and regulatory framework

A salesperson wants to know how complaints about licensee conduct are initially assessed. Which body first decides whether a complaint should proceed?

  1. The Disciplinary Tribunal
  2. The Minister responsible for the Act
  3. The Authority's chief executive
  4. A Complaints Assessment Committee Correct answer.

Explanation

Complaints are referred to a Complaints Assessment Committee, which investigates and decides whether to take no further action, refer the matter to the Tribunal, or reach an agreed outcome. The Tribunal only becomes involved if a charge is referred to it. The chief executive and Minister do not adjudicate individual complaints.

Question 32Real Estate Agents Act 2008 and regulatory framework

Which obligation does the Act place on a licensee regarding continuing education?

  1. The licensee must complete continuing education only if moving to a new agency
  2. The licensee must complete continuing education as a condition of holding a licence Correct answer.
  3. The licensee has no education obligations once first licensed
  4. The licensee must complete continuing education only after a disciplinary finding

Explanation

Holding a licence requires meeting ongoing requirements including continuing education set by the Authority. These obligations apply to all licensees continuously, not merely after a complaint or a change of employer. They support competence across the whole licence term.

Question 33Real Estate Agents Act 2008 and regulatory framework

Which statement describes the Authority's power to investigate a licensee's conduct?

  1. It may investigate conduct on its own initiative or following a complaint Correct answer.
  2. It may investigate only if the client requests it in writing
  3. It may investigate only with the Tribunal's prior approval
  4. It may investigate only after a court conviction

Explanation

The Authority can inquire into conduct on its own initiative as well as responding to complaints, reflecting its role as the industry regulator. It does not need a conviction or the Tribunal's permission to begin an inquiry. Client consent is not a precondition either.

Question 34Real Estate Agents Act 2008 and regulatory framework

A licensee is engaged by a vendor and later wishes to buy the property personally. What must the licensee do before proceeding?

  1. Proceed quietly because the licensee is entitled to buy any listed property
  2. Ask the Authority to approve the purchase on the licensee's behalf
  3. Disclose the licensee's interest in writing and obtain the client's informed consent Correct answer.
  4. Resign the licence temporarily and buy through a nominee

Explanation

The Code of Conduct requires licensees to disclose any conflict of interest, including a personal interest in the property, and to obtain informed consent before acting. Concealing the interest is a breach regardless of the price paid. The Authority does not approve individual purchases, and resignation is not required.

Question 35Real Estate Agents Act 2008 and regulatory framework

A salesperson is about to list a property and discovers the vendor is a close relative. What is the appropriate course under the Code of Conduct?

  1. Continue without disclosure because family listings are common
  2. Transfer the listing to a colleague without telling anyone why
  3. Disclose the relationship to all parties who could be affected before continuing Correct answer.
  4. Withhold the relationship unless a buyer asks about it directly

Explanation

A close personal relationship with the vendor is a conflict of interest that must be disclosed promptly to affected parties so they can assess the licensee's independence. Silence until asked does not satisfy the duty. A quiet transfer without explanation also fails the transparency requirement.

Question 36Real Estate Agents Act 2008 and regulatory framework

A licensee publishes an online advertisement for a property that includes a testimonial claiming the agent 'always gets the highest price'. Which concern arises under the Code of Conduct?

  1. The statement is acceptable because it appears online rather than in print
  2. The statement is misleading and unsubstantiated, breaching the duty of honesty in advertising Correct answer.
  3. The statement is acceptable because testimonials are always permitted
  4. The statement is acceptable if the vendor approved the wording

Explanation

Advertising must be honest and not create a misleading impression, and claims that cannot be substantiated breach that duty. Vendor approval does not cure a misleading statement. The medium of publication and the general permissibility of testimonials do not override the honesty requirement.

Question 37Real Estate Agents Act 2008 and regulatory framework

A buyer gives a licensee a cheque made out to the licensee personally as a deposit. What should the licensee do?

  1. Deposit it into the licensee's personal bank account for safekeeping
  2. Pay it into the agency's trust account promptly and issue a receipt Correct answer.
  3. Pass the cheque directly to the vendor to cash
  4. Hold the cheque in the office drawer until settlement

Explanation

Client money received by an agent must be paid into a trust account and receipted in accordance with the Act and regulations. Personal accounts and informal holding of client funds are prohibited. Handing the cheque to the vendor bypasses the required trust process.

Question 38Real Estate Agents Act 2008 and regulatory framework

An agency's trust account records are found to be incomplete during an audit. Who bears responsibility under the Act?

  1. The agent in charge of the business, who must ensure trust account compliance Correct answer.
  2. The individual salesperson who handled the transaction alone
  3. The vendor, who supplied the deposit
  4. The Authority, which supervises trust accounts

Explanation

The agent carrying on the business is accountable for trust account compliance, including accurate records and audit obligations. Salespersons may handle transactions but ultimate responsibility rests with the agent. The Authority regulates rather than operates trust accounts, and the vendor has no record-keeping duty.

Question 39Real Estate Agents Act 2008 and regulatory framework

Before a vendor signs an agency agreement, what must the licensee ensure?

  1. The agreement is witnessed by the buyer
  2. The agreement is signed only after the property is advertised
  3. The agreement omits commission details to allow later negotiation
  4. The agreement is in writing and its terms, including commission, are explained and understood Correct answer.

Explanation

The Act and Code require agency agreements to be in writing and the licensee to explain the terms so the client understands them before signing. Advertising before a signed agreement and leaving commission open are contrary to those requirements. The buyer is not a party to the agency agreement.

Question 40Real Estate Agents Act 2008 and regulatory framework

A prospective client tells a licensee they cannot afford the advertised commission rate. What is the appropriate response?

  1. Quietly reduce the rate later without documenting it
  2. Decline to act because commission is always fixed by the Authority
  3. Charge the advertised rate regardless of the discussion
  4. Negotiate the commission openly and record the agreed rate in the written agreement Correct answer.

Explanation

Commission is negotiable between agent and client, and the agreed rate must be recorded in the written agency agreement. Undocumented changes create disputes and breach the requirement for clear written terms. The Authority does not fix commission rates.

Question 41Real Estate Agents Act 2008 and regulatory framework

A licensee suspects a client is using a property transaction to launder money. What does the Act require of the licensee?

  1. Report the suspicion to the appropriate authority and comply with anti-money-laundering obligations Correct answer.
  2. Keep the suspicion confidential to protect client privilege
  3. Ask the other agent to handle the suspicious steps
  4. Complete the transaction quickly to avoid inconveniencing the client

Explanation

Licensees are subject to anti-money-laundering obligations that require reporting suspicious activity rather than completing or concealing it. Client confidentiality does not override those statutory duties. Passing the work to another agent does not discharge the obligation.

Question 42Real Estate Agents Act 2008 and regulatory framework

Which statement correctly describes the standard of proof applied by the Disciplinary Tribunal?

  1. It applies the criminal standard of beyond reasonable doubt in every case
  2. It applies the standard set by the complainant's lawyer
  3. It applies the civil standard, deciding whether the charge is proved on the balance of probabilities Correct answer.
  4. It applies no standard and decides on the basis of the Authority's recommendation

Explanation

Disciplinary proceedings are civil in nature, so the Tribunal decides whether a charge is proved on the balance of probabilities. The criminal standard of beyond reasonable doubt does not apply. The Tribunal reaches its own view and is not bound by the Authority's recommendation or a complainant's lawyer.

Question 43Real Estate Agents Act 2008 and regulatory framework

A Complaints Assessment Committee decides a complaint warrants a response short of a Tribunal charge. Which outcome specifically requires the consent of the relevant parties?

  1. Cancelling the licensee's licence outright
  2. Imposing a fine enforceable in the District Court
  3. Ordering the licensee to pay compensation to the complainant
  4. Reaching an agreed settlement with the relevant parties, implemented through Committee orders Correct answer.

Explanation

A Complaints Assessment Committee may resolve a complaint through a settlement agreed by the relevant parties, with Committee orders giving effect to it. Consent is essential to that settlement. The Committee can also impose statutory fines, enforceable as District Court orders after filing a sealed copy, so fines are not exclusive to the Tribunal.

Question 44Real Estate Agents Act 2008 and regulatory framework

A licensee is charged with a disciplinary offence and wishes to challenge the Tribunal's decision. What avenue is available?

  1. Petition the Minister to overturn the finding
  2. Appeal to the High Court on a question of law or fact Correct answer.
  3. Ask the Complaints Assessment Committee to reverse the Tribunal
  4. Apply to the Authority to reopen the charge internally

Explanation

Tribunal decisions may be appealed to the High Court, reflecting the Tribunal's status as a specialist body subject to judicial oversight. Neither the Authority nor a Complaints Assessment Committee can reverse a Tribunal finding. The Minister has no appellate function over disciplinary decisions.

Question 45Real Estate Agents Act 2008 and regulatory framework

A salesperson's registration is suspended but they continue to assist a colleague with listings. Which statement is correct?

  1. They may continue if they receive no commission for the work
  2. They may continue because the colleague holds a valid licence
  3. They are carrying out real estate agency work without a current licence and may face disciplinary action Correct answer.
  4. They may continue until the Authority issues a written warning

Explanation

A suspended licensee has no authority to carry out real estate agency work, and assisting with listings is such work. Working under a licensed colleague or forgoing commission does not cure the lack of a current licence. Disciplinary consequences can follow immediately, without a prior warning.

Question 46Real Estate Agents Act 2008 and regulatory framework

A licensee receives a written complaint from a client about a transaction. What does the Code of Conduct expect of the licensee?

  1. Destroy the transaction file to limit exposure
  2. Refer the client to the Disputes Tribunal as the only option
  3. Ignore the complaint until the Authority contacts them
  4. Respond to the complaint promptly and in a professional manner Correct answer.

Explanation

The Code requires licensees to deal with complaints fairly, promptly and professionally, which includes preserving records and engaging with the client. Ignoring a complaint or destroying files compounds the breach and may itself found a disciplinary charge. Referring the client elsewhere does not discharge the duty to respond.

Question 47Real Estate Agents Act 2008 and regulatory framework

A licensee is convicted of a serious dishonesty offence unconnected to their real estate work. What is the most likely licensing consequence?

  1. The Authority may suspend or cancel the licence because the conviction affects fitness to hold one Correct answer.
  2. The conviction is relevant only if the client complains
  3. The licence is automatically transferred to a colleague
  4. No action is possible because the offence was unrelated to real estate

Explanation

Fitness to hold a licence depends on character, and a serious dishonesty conviction can lead the Authority to suspend or cancel a licence even where the offence did not arise from real estate work. The link to real estate is not required for the character assessment. Automatic transfer of a licence is not a mechanism under the Act.

Question 48Real Estate Agents Act 2008 and regulatory framework

An agent's branch manager resigns. Which statement best describes the position under the Act?

  1. The Authority automatically appoints a replacement branch manager
  2. The branch may operate without supervision until the next licence renewal
  3. The agent must ensure proper supervision of the branch is maintained, which may require appointing a new branch manager Correct answer.
  4. The salespersons at the branch may supervise themselves collectively

Explanation

Salespersons must be supervised by an agent or branch manager, so a vacancy must be managed to keep the branch compliant. Supervision cannot lapse until renewal or be exercised collectively by salespersons. The Authority does not appoint managers for private businesses.

Question 49Real Estate Agents Act 2008 and regulatory framework

A licensee holds client funds in a general business account 'temporarily' because the trust account is being audited. How should this be assessed under the Act?

  1. It is a breach, because client money must be held in a trust account at all times Correct answer.
  2. It is acceptable during an audit period
  3. It is acceptable if the client gives verbal permission
  4. It is acceptable if interest earned is passed to the client

Explanation

Client money must be held in a trust account, and administrative convenience such as an audit does not create an exception. Verbal permission cannot override the statutory trust account requirement. Paying interest to the client does not legitimise holding funds outside trust.

Question 50Real Estate Agents Act 2008 and regulatory framework

A licensee wants to advertise a property as having a particular council rating. Which approach best reflects the Code of Conduct?

  1. Publish the figure from memory and amend it only if challenged
  2. Publish an inflated figure to attract more enquiries
  3. Verify the information and present it accurately, correcting any error promptly Correct answer.
  4. Leave the figure off because advertising details are optional

Explanation

Advertising must be accurate and not misleading, so licensees should verify claims such as a council rating and correct errors quickly if they arise. Publishing from memory or inflating figures creates a misleading impression. Omitting verified information is a separate choice, but it does not justify inaccuracy.