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.