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Paper 2 · Lesson 1 — Regulatory Framework, Registration, CPD and Professional Conduct

Conduct duty to client

Convey all offers, keep-informed / not-abandon, honesty/integrity, not holding out as a valuer or HDB officer, the PSM, OTP signatories.

1 questionAnswers & explanations includedFree — no sign-up

Question 1

Agent Yusof receives an offer from a buyer that he considers absurdly low — almost insulting to his seller-client. He is tempted simply not to pass it on, to avoid annoying the seller and to keep her focused on serious buyers.

What must Agent Yusof do?

  1. A. He must submit the offer to his client, however low it is, and let her decide.
  2. B. He may withhold it, but must record his reasons in writing in case the seller asks.
  3. C. He may withhold the offer, it being plainly neither serious nor reasonable.
  4. D. He should counter-offer on the seller's behalf at a higher price without telling her.
Show the answer and full explanation

Answer: A

The rule. A salesperson must convey every offer and expression of interest to the client and let the client decide. He does not filter offers by his own view of whether they are worth putting.

Why A is correct. However low the offer, Yusof must submit it to his seller-client and leave the decision to her.

The other options.

  • C lets him withhold a "plainly unreasonable" offer. That judgement is the client's, not his.
  • B lets him withhold it if he records his reasons. Recording reasons does not license withholding.
  • D has him counter-offer without telling her. He cannot act on her behalf without instructions.

Exam note. Every offer goes to the client. An agent never screens offers by his own sense of what is "serious."

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

Practise it under exam conditions

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