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Before marketing a property the agent must retrieve the title

A worked RES examination question on land share and common property, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.

Paper 1Lesson 2Land share and common propertyFree — no sign-up

The question

Madam Lim asks her agent to market a shophouse which she says her late husband left to her. The agent has only her word for the ownership and has not seen any document. He is about to place an advertisement describing her as the owner.

Which statement is correct?

  1. A. He may advertise on her word, a client's account of her own property being reliable.
  2. B. He need not retrieve the title, ownership being a matter for the buyer's solicitor alone.
  3. C. He may advertise now and retrieve the title only if a buyer raises a question about it.
  4. D. He should retrieve the title first, a client's information not being a safe basis to act on.

The answer, and why

Answer: D

The rule. Before marketing a property the agent must retrieve the title. A client's account of her own property is not a safe basis to act on, and advertising inaccurate details exposes the agent to a claim in misrepresentation.

Why D is correct. He should retrieve the title first rather than rely on Madam Lim's word.

The other options.

  • A treats the owner's account as reliable.
  • C defers the check until a buyer asks, which is too late if the advertisement is already wrong.
  • B passes the whole matter to the buyer's solicitor, when verifying ownership is the marketing agent's own first duty.

Exam note. "Retrieve the title first" is the standard opening step, and the reason is that the client may be honestly mistaken, not merely dishonest.

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