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Professional conduct
The Estate Agents (Professional Conduct) Regulations 2018 set out the standard of conduct expected of agents and agents' representatives in their day-to-day dealings with clients (sellers and landlords) and consumers (buyers and renters).
They are in addition to the obligations set out under legislation such as the:
- Estate Agents Act 1980
- Sale of Land Act 1962
- Residential Tenancies Act 1997
- Retail Leases Act 2003
- Australian Consumer Law and Fair Trading Act 2012.
Obligations
In summary, estate agents and agents’ representatives must:
- know the relevant laws
- follow their client’s lawful instructions, except if it would not be good estate agency practice
- act fairly, honestly, in good faith and to the best of their knowledge and ability at all times
- act in their client’s best interests, except if it would be unlawful, unreasonable, improper or against their client’s instructions
- disclose to their client any personal or commercial relationship they have with a supplier, if they recommend that supplier
- exercise skill, care and diligence in performing their functions
- complete all work for a client as soon as reasonably possible
- be timely and courteous in all dealings when carrying out their duties
- immediately inform a seller if, contrary to the contract, a deposit is not received for a sale
- promptly notify a landlord of any breach of a tenancy agreement, unless instructed otherwise by a landlord in writing
- make all reasonable enquiries to ascertain information relevant to a transaction
- provide all verbal and written offers to a client, unless instructed otherwise by a client in writing
- inform the person making an offer that it will not be submitted to the principal, if principal’s instructions to the agent are to not inform them of offers
- promptly respond to a renter’s request for maintenance and repairs and notify the renter of a landlord’s response
- inform the landlord if the landlord’s failure to carry out maintenance or repairs would constitute a breach of the agreement or the Residential Tenancies Act 1997
- when acting as a buyer’s agent keep the purchaser informed of each stage of the negotiations
- provide advice about the agency’s dispute resolution procedure before or as soon as possible after a tenancy agreement is signed
- minimise disputes with clients
- advise clients and consumers about the agency’ complaint and dispute resolution procedures.
In summary, estate agents and agents’ representatives must not:
- use or disclose confidential information they obtain while acting for a client, unless authorised by the client or required by law to do so
- induce a client to enter into an agency authority that may lead to commission being paid to more than one estate agent, without first giving them written advice of the possible consequences
- put their interests in conflict with those of their client by acting for another person
- accept commission from both a client and a consumer for the same transaction
- induce a person to breach any contract
- mislead a renter, a prospective purchaser or a purchaser about a landlord's or seller's instructions
- engage in conduct that is unprofessional or detrimental to the estate agency industry
- convey bids made after a property has been knocked down at a public auction, unless a contract is not signed.
For information on the penalties for breaches, viewPenalties - Estate agents.
FAQs
Generally, agents must follow instructions, avoid conflicts with the principal, use reasonable care and, skill and keep proper accounts. If the appointment is written the agent may be entitled to be paid for the work done on your behalf.
What are the obligations of an agent? ›
Generally, agents must follow instructions, avoid conflicts with the principal, use reasonable care and, skill and keep proper accounts. If the appointment is written the agent may be entitled to be paid for the work done on your behalf.
What was Bob's obligation to Sheila and Tom? ›
What was Bob's obligation to Sheila and Tom? None. He did not represent them.
What is the most common complaint filed against REALTORS? ›
Most Common Complaints
- Septic systems.
- Solar leases.
- Failure to disclose and Seller's Property Disclosures.
- Water rights.
- Miscommunication.
- Agent-owned property and additional supervision.
- Multiple offers.
- Unpermitted work.
Frequently Asked Real Estate Questions from Buyers
- What's the initial step in purchasing a home? ...
- What are my options if my offer is turned down? ...
- How does my agent get paid when buying a house? ...
- What if I sell my home but I'm not able to find a new one to buy? ...
- Home prices are going down.
Under the Civil Code, the principal obligations of an agent are:
- To carry out the agency in accordance with its terms [Article 1884, Civil Code];
- To answer for the damages which through his non-performance the principal may suffer [Article 1884, Civil Code];
Duty of Good Conduct
The agent is not at liberty to act with impropriety or notoriety, so as to bring disrepute on the business in which the principal is engaged. A lecturer at an antialcohol clinic may be directed to refrain from frequenting bars. A bank cashier who becomes known as a gambler may be fired.
What is the burden of proof in an arbitration hearing in real estate? ›
The standard of proof on which an arbitration hearing decision is based shall be a “preponderance of the evidence.” Preponderance of the evidence shall be defined as evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows ...
What does article 16 require REALTORS to respect? ›
The Hearing Panel's decision noted that Article 16 requires a REALTOR® to respect the agency of another REALTOR®. But, in order to respect the listing broker's agency, the REALTOR® must be able to determine if a listing really exists.
What happens if a REALTOR is found in violation of the code? ›
If such a situation occurs, the local association of which the REALTOR® is a member can issue sanctions or fines and suspend or terminate membership in the local association of REALTORS®, which also terminates membership in the state association and NAR.
Unethical agents will often use fraudulent misrepresentation to win a listing, sell a property faster, or push for a property to sell faster. Such actions violate ethical standards and are illegal in many jurisdictions.
What is an ethical violation in real estate? ›
Types of Ethical Complaints
Misrepresentation or false advertising: Providing inaccurate information about a property or services. Failure to disclose material facts: Not revealing information that could affect a client's decision to buy or sell.
What is the first step in an Ethics complaint in real estate? ›
1. Complete, sign, and date the Ethics Complaint form which requires you to name the REALTOR®(S) in question as the Respondent(s). 2. On the “Specific Allegations by Complainant” form, list the Article(s) of the Code of Ethics you believe the REALTOR® has violated.
What is the most googled question about real estate? ›
The eternal question of whether it's the right time to buy or sell a home is a perennial favorite among internet searches. Timing the real estate market perfectly is challenging, and the decision to buy or sell should be based on individual circ*mstances and objectives.
What is the toughest thing about being a real estate agent? ›
One of the hardest things about being a real estate agent is smoothing your income so that it is consistent throughout the year. This requires discipline and rigorous budgeting. Some agents take second jobs.
How should a real estate agent answer the phone? ›
Cell Phone Tips for Realtors
- Smile when answering the phone – Smiling, even if no one is looking, instantly lifts your mood. ...
- Begin with your name – Answering the call with your name ensures the caller doesn't have to wonder whether they dialed the correct number and makes you more efficient in conducting business.
The responsibilities of an agent are to find and sign talent, negotiate contracts, and get the best possible deals for their clients. They also need to be able to manage their clients' careers, which includes planning and executing promotional campaigns, bookings, and other opportunities.
What are the agency obligations? ›
AGENCY'S OBLIGATIONS means the obligation to execute the services in it's entirely and shall, without limitation, include the agency's Operation and Maintenance (5 Years) including defect liability.
What are the rules of an agent? ›
An agent must not usurp an opportunity from the principal by taking it for himself or passing it on to a third party. In return, the principal must make a full disclosure of all information relevant to the transactions that the agent is authorized to negotiate.
What are the four 4 characteristics of an agent? ›
Agent Characteristics
- Situatedness. The agent receives some form of sensory input from its environment, and it performs some action that changes its environment in some way. ...
- Autonomy. ...
- Adaptivity. ...
- Sociability.
