Professional Service Manual: RES exam practice questions

Under the PSM, a client-agent relationship is established when a prospective seller, landlord, buyer or tenant __________.

1. Aengages an estate agent or salesperson to do estate agency work
2. Bsigns an Option to Purchase or a tenancy agreement for the property
3. Cpays the first part of the commission to the estate agent
4. Dviews a property that the salesperson is marketing

Before a leased property is handed over to the tenant, the salesperson shall ensure that __________.

1. Aan inventory list is signed by both parties, with photographs where appropriate
2. Bthe landlord’s lawyer certifies the condition of each fitting and appliance
3. Cthe security deposit is increased to cover any future wear and tear
4. Dthe management office inspects the unit and certifies its condition

For an owner’s written consent to advertise his property to be valid, he must first be informed in writing of __________.

1. Aeach salesperson’s name and registration number, and whether he acts for him
2. Bthe commission each salesperson will charge buyers, and the portals he will use
3. Cthe portals and newspapers to be used, and the cost of each advertisement
4. Dthe number of enquiries each salesperson expects the advertisements to bring

For the purposes of the PSM, a client’s consent given ‘in writing’ __________.

1. Amay be given by e-mail, SMS or another verifiable electronic message
2. Bmust be on the estate agent’s letterhead and signed by the client in ink
3. Cmust be witnessed by the estate agent’s key executive officer
4. Dis valid only if it is attached to a prescribed estate agency agreement

In an HDB resale where the seller and the buyer have each engaged their own salesperson and agreed to pay them commission, the two salespersons __________.

1. Amay each collect only from their own client, with no co-broke fee
2. Bmay pool the two commissions and share them equally as a co-broke fee
3. Cmay each collect a co-broke fee from the other on top of their commission
4. Dmust waive their clients’ commission and share a single co-broke fee instead

To confirm a client’s identity before performing estate agency work, the PSM expects the salesperson to __________.

1. Asee and record the details of his NRIC or passport
2. Bask for a letter of reference from his employer or his bank
3. Crely on the name printed on his business card
4. Dobtain a report on him from a credit bureau

Mr Lau Kok Wah, 84, a retired hawker and Singapore Citizen, lives alone in the 3-room flat in Ang Mo Kio that he has owned outright for over 30 years. His only daughter lives in Perth and calls him every Sunday. He engages Salesperson Nurul Huda to sell the flat and signs the estate agency agreement at their first meeting. Over the next three meetings he asks the same questions each time, cannot recall what was agreed the day before, and says he wants to sign ‘as fast as possible’ so that he can ‘get the money’. Asked where he will stay after the sale, he says he has not thought about it. A buyer’s salesperson has meanwhile offered $15,000 above the asking price if the option is granted by Friday.

Which of the following BEST describes how Nurul should handle the matter?

1. ATake greater care with him as a client who may be vulnerable, avoid pressing him to sign, and consider involving his daughter and his legal adviser
2. BProceed on his instructions without delay, as he is well above the contractual age, owns the flat outright and has signed the agency agreement
3. CDecline to act any further, as a salesperson is not allowed to take on a client who may be vulnerable unless a relative signs with him
4. DProceed to grant the option this week to secure the higher offer, provided a neighbour witnesses his signature on each of the documents

Mr Chua Wei Ming, a Singapore Citizen who has worked in London for six years, is selling his vacant two-bedroom condominium unit in Novena, which he bought as his first home. Before flying back, he gives Salesperson Farhan Rashid his only set of keys and asks him to ‘handle everything’, adding that the time difference makes calls difficult. A co-broking salesperson from another agency, who says he has fifteen years’ experience and ‘knows the building well’, asks Farhan to lend him the keys so that he can show the unit to his buyer on his own on Saturday afternoon. He also suggests that Farhan cut a spare set, since several of his other buyers may want to view the unit next week.

What should Mr Chua’s salesperson, Farhan, do?

1. ARefuse to cut a spare set without Mr Chua’s consent, and inform Mr Chua in writing of the date, time and viewer’s name for each viewing
2. BCut a spare set for co-brokers, as keys handed over for viewings may be used for any purpose that is connected with the sale of the unit
3. CLend his own set to the co-broker without informing Mr Chua, as handing over the keys amounted to consent to every future viewing
4. DRefuse all co-broke viewings, as only the owner’s own salesperson may show a vacant unit to buyers represented by another agency

Mr Goh Boon Keat and his wife, Mrs Goh Siew Ling, both Singapore Citizens in their fifties, own a freehold condominium unit in Upper Bukit Timah as joint tenants and plan to move into their son’s house. They engage Salesperson Kevin Tan, who finds a buyer at $1.72 million, a price both owners approved at a meeting a week earlier. On the day the Option to Purchase is to be granted, Mrs Goh tells Kevin that her husband has flown to Canada for a month for a family event, and that she will sign for both of them because ‘as joint tenants, each of us owns the whole flat’. The buyer’s salesperson says his client wants the option granted today.

What should the salesperson, Kevin, advise?

1. AMr Goh must sign too, either personally or through an attorney whose written authority Kevin has sighted and verified beforehand
2. BMrs Goh may sign alone, as each joint tenant may deal with the whole property and her husband has already agreed to the price
3. CMrs Goh may sign both names, provided Mr Goh confirms his approval to Kevin by WhatsApp message before the option is granted
4. DKevin may sign on Mr Goh’s behalf, provided Mr Goh first appoints Kevin as his attorney for the purposes of the sale

Ben Ng and Clara Loh are salespersons in the same group at Summit Realty. Clara holds the exclusive listing for a semi-detached house in Serangoon Gardens at $4.2 million, and the two of them jointly advertise it on a property portal with both their names and photographs. Ms Harpreet Kaur, 41, a doctor who is a friend of Ben’s wife, sees the advertisement and calls Ben. She tells him she has not engaged any salesperson so far, and asks him to represent her in buying the house because she ‘trusts him more than a stranger’. Their group leader tells Ben that it is fine as long as both of them put the team link in writing.

Which of the following BEST describes whether Ben may represent Ms Kaur?

1. ANo, as Ben is in the same team as Clara for that house, and Ms Kaur engaged him only after the house had been made known to her
2. BYes, provided Clara and Ben each disclose their team link to their own clients in writing before any offer is made
3. CYes, as the restriction on dual representation applies only where one salesperson acts for both the seller and the buyer
4. DNo, as salespersons of the same estate agent may never act on opposite sides of any transaction, whether or not they are in a team