A salesperson must convey every offer and expression of interest to the client and let the client decide
A worked RES examination question on conduct duty to client, from our Paper 2 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
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?
The answer, and why
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."
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