SQE Code of Ethics question: salesperson Nelson Fu to pass

EAA SQECode of Ethics

Purchaser client Ms Yeung asks salesperson Nelson Fu to pass on her offer of HK$7,150,000 for a flat. Nelson thinks it is too low and does not tell the vendor, his other client, because he expects a higher offer from another buyer next week. Which statement is correct?

A Nelson failed to carry out his client's instructions and to act impartially and justly to all parties
B Nelson acted properly, since he is entitled to judge which offers are worth passing on
C Nelson acted properly as long as he tells Ms Yeung the vendor has rejected it
D Nelson breached the Code only if the higher offer never arrives

Show the answer and explanation

Answer: A. Nelson failed to carry out his client's instructions and to act impartially and justly to all parties

Answer: He failed to carry out his client's instructions and to act impartially and justly to all parties. Why not the others: - He may judge which offers to pass on: It is for the vendor, not the agent, to decide whether to accept or reject an offer. - Tell Ms Yeung it was rejected: That would add a false statement to the failure. - Only if the higher offer never comes: The breach is complete when he withholds the offer, whatever happens next. Rule: Licensees should carry out their clients' instructions and act in an impartial and just manner to all parties. Source: EAA Code of Ethics, paragraphs 3.3.1 and 3.4.1; as at Oct 2026

Common mistake

Thinking an agent may filter out offers he considers too low.

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An original question written to the published SQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.