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Paper 2 · Lesson 2 — Code of Practice, Professional Conduct and Conflicts of Interest

Client status and duties

Who is a client vs a third party; convey-all-offers, keep-informed / not-abandon, post-signing follow-up, don't-guess-a-figure.

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Question 1

Faced with the three competing offers received on the same Saturday, what should Serena do?

  1. A. Accept Mr Lee's asking-price offer on Mr Tan's behalf at once.
  2. B. Convey all three offers to Mr Tan and take his instructions.
  3. C. Present only the highest offer, Mr Raja's, and set the other two aside.
  4. D. Decide for herself which buyer is most reliable and proceed with that one.
Show the answer and full explanation

Answer: B

The rule. A salesperson must convey every offer to the client and let the client decide. She does not accept, rank or discard offers on the client's behalf.

Why B is correct. Serena should put all three offers to Mr Tan and take his instructions. The choice is his.

The other options.

  • A accepts an offer for him. Acceptance is the client's decision.
  • C discards two offers. Every offer must be conveyed.
  • D has her choose the buyer. She advises; she does not decide.

Exam note. Convey them all, decide none. The client picks the offer.

A salesperson must convey every offer to the client and let the client decide →

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