Commercial Agency Practice: Client Care, Compliance and Professional Standards
Core concepts
Commercial agency practice questions test professional standards and compliance. You must understand: client identification and anti-money-laundering obligations; client money handling and separate client accounts; terms of business and transparency of fees; conflicts of interest and confidentiality; data protection when handling applicant and tenant information; equality and fair treatment of applicants; and complaints handling and redress schemes.
You should also know the difference between agency, valuation and management instructions, and the importance of recording instructions in writing. Candidates should understand that the agent must not misrepresent a property, must pass on offers fairly, and must keep accurate records.
Traps in questions
- Assuming client money can be mixed with office funds - it must be held separately.
- Forgetting that identity checks apply to both buyers and sellers in relevant transactions.
- Treating a verbal instruction as sufficient - written terms of business are expected.
- Overlooking that a conflict of interest must be disclosed and, where necessary, the instruction declined.
Rule of thumb
Ask: who is my client, what have I agreed in writing, and whose money am I holding? If any answer is unclear, stop and clarify before acting.
Worked example
An agent is asked to act for both the seller and a prospective buyer in the same transaction. The agent should disclose the conflict, obtain informed consent where permitted, and decline the instruction if a material conflict cannot be managed fairly.