Listing a Property: Appraisals, Agency Agreements, Marketing and Disclosure
What this domain tests
Listing work: appraisal, agency agreement, marketing consent and disclosure. The exam tests whether you can get authority and present the property lawfully.
Appraisal and agency agreement
- Give a written appraisal of likely selling price before entering the agency agreement; base it on comparable evidence; it is an opinion, not a registered valuation.
- The agency agreement must be written, explained, and a copy provided; terms cover parties, property, term, commission, cancellation and authority.
- Check the agency type (exclusive, sole or general) because commission triggers differ.
Marketing and disclosure
- Do not advertise until a written agency agreement exists and the client consents.
- Ads must be accurate and not misleading; disclose material facts and known defects.
- Keep vendor instructions and disclosure decisions documented.
Worked example
A vendor wants the ad to say 'no weathertightness issues' although they mention a past leak. Reasoning: the statement is misleading and the known leak is material. You cannot rely on the vendor's assurance. Advise that the ad must be accurate, amend the wording, and disclose the history in the required way. If the vendor refuses, do not publish the misleading statement.
Traps
Do not call an appraisal a valuation. Do not start marketing before the agreement is signed. Do not use 'sole' and 'exclusive' interchangeably. Do not let a vendor's instruction override the duty not to mislead.