SQE Code of Ethics question: Lion Rock Property an exclusive listing

EAA SQECode of Ethics

Vendor Ms Fong has given Lion Rock Property an exclusive listing. To persuade her to switch, salesperson Ricky Lo of another agency tells her that Lion Rock Property 'cheats its clients and has been fined many times', which is untrue. Which statement is correct?

A Ricky may say this because exclusive listings are against the public interest
B Ricky commits no breach because he did not publish the remarks in an advertisement
C Ricky breaches the Code only if Ms Fong actually ends her agreement with Lion Rock Property
D Ricky breaches the Code by injuring the reputation of, and disparaging, another agency

Show the answer and explanation

Answer: D. Ricky breaches the Code by injuring the reputation of, and disparaging, another agency

Answer: He breaches the Code by injuring and disparaging another agency. Why not the others: - Exclusive listings are against the public interest: Exclusive (sole agency) appointments are lawful and provided for in the prescribed forms. - No advertisement, so no breach: The paragraph covers injuring reputation 'directly or indirectly'; a remark to a client is enough. - Only if she switches: The breach lies in the conduct, not in whether it succeeds. Rule: Estate agents and salespersons shall not seek unfair advantage over, nor injure directly or indirectly the reputation of, nor publicly disparage the business practice of other agencies. Source: EAA Code of Ethics, paragraph 3.7.1; as at Oct 2026

Common mistake

Believing a private remark to a client falls outside the rule against injuring another agency's reputation.

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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.