RES420 Fundamentals of Real Estate

RES420 Fundamentals of Real

Estate
Assignment 1
Week due:

Notes

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This assignment focuses on the learning you’ve done in Modules 1 and 2. The
assignment consists of four tasks:

• Task 1: Recruitment questions.

• Task 2: Office quiz.
• Task 3: What’s gone wrong?
• Task 4: Complaints process.

Learning outcomes

You will be assessed on the following learning outcomes:

• Apply the standards of professional conduct expected of real estate licensees

to realistic scenarios, identify the duties of licensees regarding unsatisfactory
conduct and misconduct, and distinguish the steps in the complaints process.
• Apply the requirements of licensing in the real estate industry to realistic
scenarios.
• Identify the main duties relating to real estate work as provided in legislation.

Assignment scenario

For the purposes of these tasks, you have accepted a position working as a
Saturday morning receptionist at Waterford Real Estate Ltd. John Canon, the
manager, is aware that you are studying for your Salesperson’s Certificate, and
occasionally asks you to complete additional tasks he feels will help with your
study.
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Task 1: Recruitment questions

John is hoping to recruit two new salespeople for the team. He has added a page
to the agency’s website, titled ‘Come and work in real estate’, which describes
the work and invites people to submit questions.

The branch manager has asked you to draft brief answers to some of these
questions. In each case you need to refer to the relevant section(s) of the Real
Estate Agents Act 2008 that apply.

(Write 50–75 words per response.)

Here are some of the questions John’s received during the past week regarding
licensing issues:

1. I am nearly 18 years old. I know you want someone to start work in June, but
I don’t turn 18 until October. Would that work?

2. I was convicted of benefit fraud when I was 19. That was 15 years ago, and I
haven’t had any problems since then. Will this disqualify me?

3. I was made bankrupt 3 years ago because a customer of my importing

business got into financial difficulties and couldn’t pay me. But I’m not a bad
person! Will this count against me becoming a salesperson? My bankruptcy
was discharged in March last year.

4. I’ve just completed my salesperson’s course. I want to be a salesperson

because my parents both work in real estate. But I don’t have any
experience yet. Will this disadvantage me in any way?

5. My husband got his licence a couple of years ago and has done a bit of work
in real estate but doesn’t enjoy it. Can his licence be transferred into my
name?

Task 2: Office quiz

John Canon, the branch manager, runs a monthly training session with the sales
team. This month he has set a quiz to check the salespeople’s understanding of
the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional
Conduct and Client Care) Rules 2012 (the Code).

John drafted some scenarios based on cases from the Complaints Assessment
Committee and situations he heard about from other agencies. He asks you to
prepare example answers to give to the team at the end of the training session.

Read the following client complaints then state:

• the legislation that applies to the situation (name the section(s) and rules that
apply), and
• whether each issue is likely to reflect:
− misconduct, or
− unsatisfactory conduct, or

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− no further action is required

• whether section 72(a) or section 73(a) is relevant.

Complaints:

1. I didn’t fully understand what the agreement form said because I only started
learning English 3 years ago. I told the salesperson that I wanted to discuss
it with my sister, who has lived here for a long time and is fluent in English,
before signing. He told me he couldn’t wait, and I would miss out unless I
signed the agreement form immediately.

2. The salesperson gave me a bank account number to pay the deposit into.
After I’d paid, I received a phone call from the office administrator, asking me
to pay the deposit. I told her I’d done so, and it was only then that we found
out that the salesperson had given me his personal bank account details.
I’ve now discovered he’s since left the agency. Fortunately, the agency isn’t
asking me to pay the deposit a second time.

3. When we were preparing our offer to purchase the lifestyle block, the
salesperson told us not to bother getting a LIM report. He said they were too
expensive, and that there wouldn’t be any useful information relating to this
property. We did get a LIM and found out that the barn doesn’t have a
building consent, and much of the land is part of a flood plain.

4. When we listed our house for sale, the salesperson gave us a booklet from
the Real Estate Authority that explained everything. Then she made us read
and sign a lengthy agency agreement form, asking us detailed questions
about the property. She also told us how we could cancel the agency
agreement if necessary. She advised us to check with our lawyer before
signing any documents. It all seemed a bit excessive. Doesn’t she trust us to
make our own decisions?

5. Saturday morning, after a massive argument with my girlfriend of 2 years, I

phoned a local real estate agency and had one of their salespeople list my
apartment for sale. I’d decided to quit my job and move to Australia. My
girlfriend and I made up on Sunday night, and I rang the salesperson early
on Monday morning to advise I wanted to cancel the agency agreement. She
said I couldn’t do that, because she had already shown a possible buyer
through on Sunday.

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Task 3: What’s gone wrong?

Respond to the following questions by applying the appropriate legislation.

(Use up to 150 words for each answer in Task 3.)

1. Stacey, a salesperson at the office, asks you to photocopy 100 flyers that
she wants to use for prospecting purposes. You notice that the flyers don’t
make any reference to the agency name or the fact that it’s licensed under
the Real Estate Agents Act 2008. The only identifying information is the
name and contact details of the salesperson herself.

What advice would you give her? Include reference to the appropriate
section of the Real Estate Agents Act 2008 in your answer.

2. Jason, a salesperson, transferred from an agency in another city to this

office 2 months ago. He’s just realised that he forgot to notify the Real Estate
Authority of his change of address.

What should he do now? Include reference to the appropriate section of the

Real Estate Agents Act 2008 in your answer.

3. Joel, a salesperson, wants to help his sister Mary, a single parent with three
children, get her first home. He’s recently listed an affordable property that
would be very suitable for Mary. The clients are in financial difficulty and
want to sell quickly. He’s talking about this with you during a coffee break,
saying that Mary still uses the name of her children’s father, so nobody need
know that they’re related. Joel says he wants to avoid having to get a
registered valuation for the property, because ‘that’s just another expense
we don’t need. Instead of paying for that, I’d rather buy Mary some furniture’.

What advice would you give to Joel? Include reference to the appropriate
section of the Real Estate Agents Act 2008 and the Real Estate Agents
(Duties of Licensees) Regulations 2009 in your answer.

Task 4: Complaints process

One Saturday Mr Jenkins, a customer you’ve met at the office before, comes
into the office in a very upset state. He asks to speak with Cameron, one of the
salespeople. You explain that Cameron is attending an auction, accompanied by
John, the branch manager. Mr Jenkins tells you that Cameron recently sold him
a property.

Mr Jenkins says Cameron misrepresented the property and he has been

seriously financially disadvantaged as a result. Mr Jenkins demands to know
what your office is going to do about it.

How would you explain the complaints process to Mr Jenkins? Refer to the
relevant parts of the Code in your explanation.

(Use 150–250 words for your answer.)

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