duty of an agent

The expected duties and ethics of auctioneers and agents are shown in the codes of practice. The agent should ask the principal for clarification of the instructions if there is any doubt about what he/she is expected to do. For example, if the agent fails to insure a property against the owner's instructions, the agent is liable for damages. However, the agent cannot carry out a principal 's instructions if those instructions are illegal.

Real estate agents are employed to obtain the best price. The agent must inform the vendor of all offers received even after the vendor has accepted an offer. The fact that the an agent has acted in good faith is not a defence. The agent's duty ceases when the vendor and purchaser are bound in contract or have orally agreed subject to contract.