The prescribed forms divide into non-exclusive and exclusive sets
A worked RES examination question on prescribed estate agency forms, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
Madam Lee signs a prescribed sale agreement that leaves her free to appoint other agents as well. Mr Tan signs a prescribed agreement of the other kind, under which he may engage no one else while it runs. In each case the salesperson who took the instruction signs the form beside the client, and the firm's name is printed across the top.
Consider the following statements.
- (i) Madam Lee's form is a non-exclusive one and Mr Tan's an exclusive one.
- (ii) Madam Lee may engage other agents while her appointment runs.
- (iii) Mr Tan is confined to the one appointed agent for the term of his.
- (iv) Each agreement is made between the client and the salesperson who signed it.
The answer, and why
Answer: D
The rule. The prescribed forms divide into non-exclusive and exclusive sets. Under a non-exclusive appointment the client may engage others; under an exclusive appointment he is confined to the appointed agent for the term. Whichever is used, the agreement is made between the firm and the client — the salesperson signs for the firm but is not himself a party.
Why D is correct. (i), (ii) and (iii) read the two forms correctly onto Madam Lee and Mr Tan. (iv) is false — the salesperson's signature does not make him the contracting party; the firm named across the top is.
The other options.
- A and B carry the false (iv).
- C carries it too and drops the correct (i).
Exam note. Statement (iv) recurs across this lesson because it is the most persistent misconception: the person you deal with is not the person you contract with.
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