RES420 Fundamentals of Real Estate

RES420 Fundamentals of Real Estate

  • Submit all your answers in one document
  • Write the number of each part of the question you are answering
  • Create a header with your name, student number and assignment number, and number your pages
  • You must make a reasonable attempt to complete your assignment before you submit.

This assignment assesses the following learning outcomes

  • LO1: 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.
  • LO2: Apply the requirements for licensing in the real estate industry to realistic scenarios.
  • LO3: Identify the main duties relating to real estate work as provided in legislation.

Assignment Scenario

For the purpose of these tasks you have accepted a position as the Training Co- ordinator at Ferngully Realty Limited. Your role is to ensure both the existing sales team and any new salespeople joining the team are up to date with their verifiable and non-verifiable training and any relevant changes to legislation. Also, you must ensure that everyone is familiar with, and consistently adhering to their responsibilities and obligations under the REA Act 2008 and the Real Estate AgentsAct (Professional Conduct and Client Care) Rules 2012 (the Code).

Task 1: Recruitment and FAQs

Your first duty is to help update the agency’s website page for ‘Frequently Asked Questions’ (FAQs). The Branch Manager, Jane Kato, has recently been receiving a high volume of enquiry from members of the public considering a career in the real estate industry. She is hoping to eliminate some of the repetitive questions getting directed her way and will also use the questions and responses as part of the training sessions for the sales team.

(Write 50-75 words per response)

Jane has asked you to outline and explain the answer to the following questions that relate to licensing issues referencing, the relevant section(s) and any sub- section(s) of the Real Estate Agents Act 2008 that apply.

  1. I want to have a career in real estate. Can I apply to be a salesperson as soon as I finish school? I would have just turned 18.
  2. I had my real estate licence cancelled four years ago because I did not complete my verifiable training (continued professional development). I didn’t mind at the time as I was going to travel overseas, but now that I am home, I think I will get back into the industry. Can I just re-apply for my licence?
  3. I am excited to be starting work as a new salesperson next week. But also, very worried that I will make a mistake and breach my obligations under the REA Act and Code. Is there someone at the Agency who will be responsible for supervising me in my role as a salesperson?
  4. I have just completed my salesperson’s course and want to become a Branch Manager. My goal is to work as a salesperson for a maximum of two years and then apply for any Branch Manager positions that come available. Is it

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likely I would be considered if I have only been a salesperson for two years? I have had eight years’ experience managing a large telemarketing company.

v. My wife is looking at taking maternity leave for 12 months and won’t be using her real estate (salesperson) licence. Can I have it transferred into my name so I can manage the business for her, and then transfer it back into her name when she returns to work?

Task 2: Questions for Staff Training Sessions

The branch Manager, Jane, has asked you to help her prepare some scenarios that she can use in her weekly meetings as on-going training for her sales team. She has recently overheard some interesting discussions in the office between the sales team and thinks it’s time to upskill and remind everyone of their duties and obligations under the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code).

Jane has drafted the following scenarios based on complaints and positive feedback she has experienced during her career. She would like you to prepare the example answers so she can include them in the upcoming training sessions.

Read the following scenarios, then:

  • State the legislation that applies to the situation (name the section(s) of the Act and rules of the code that have been breached, or that have been complied with), and
  • Identify whether each issue is likely to reflect:o misconduct,oro unsatisfactoryconduct,oro nofurtheractionisrequired.(if unsatisfactory or misconduct apply, also identify the section that relates)
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Complaints:

i. We decided to sell our property without a price, ‘by negotiation’. The salesperson knew that our price expectation was upwards of $950,000 but he knowingly allowed a website listing to indicate a price range starting at $750,000. We thought that was very misleading for the purchasers who were wanting to make offers and very frustrating for us as the offers we received were well under our expected sale price.

Task

Identify three rules from the Code that are relevant:

• Justify whether misconduct or unsatisfactory conduct or no further action applies (if unsatisfactory or misconduct applies, also identify the section that relates).

ii. We had been searching for property in Ferngully for months when we got a call from a salesperson to say he had just listed a property that would be perfect for us. He said that we would have to be quick as it was going to be advertised on his agency’s website in a few days and that we should view it quickly and make an offer if we liked it. He explained that we couldn’t view inside yet, but we could take a drive past and look from the street. He also sent us an email with all the property description and information. We raced around to view and it was exactly what we had been looking for. We rang the salesperson back and told him we were super keen and wanted to view as soon as possible so that we could make an offer. A few hours later he returned our call to say the owners had changed their mind and didn’t want to sell. It turned out that he didn’t even have a signed agency agreement in place.

Task

  • Identify one section from the Act and three rules from the Code that are relevant.
  • Justify whether misconduct or unsatisfactory conduct or no further action applies (if unsatisfactory or misconduct applies, also identify the section that relates).
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  1. I recently listed my house for sale with a local agency. The salesperson told me that he could get at least $700,000 which sounded like a very good price, so I signed an agency agreement and put the house on the market. When my son saw my house for sale at $700,000, he said I was selling far too cheaply and asked to see a copy of the market appraisal. I hadn’t been given one of those, or anything else for that matter. I don’t even have a copy of the agency agreement I signed, or a copy of the approved guide. The salesperson did say he would get some paperwork to me at a later stage as he was in a hurry to get to his next appointment, but that was about a week ago. I have since found out from another agency that my property is worth at least $800,000 comparing it to other recent sales in my neighbourhood.Task
    • Identify two sections from the Act and three rules from the Code that are relevant.
    • Justify whether misconduct or unsatisfactory conduct or no further action applies (if unsatisfactory or misconduct applies, also identify the section that relates).
  2. We recently made an offer to purchase our first home. My husband and I were very excited but very nervous that we would make a bad choice. The salesperson made us take our time with the viewing and suggested we had a second look. We loved it and wanted to make an offer straight away. He even gave us a little booklet to read about buying property and we had to sign to say we had received it. He pointed out some rotten boards in the deck and recommended that we got a building inspection and a LIM report. He also explained that the owners wanted us to know that the neighbours were going to build a treehouse by the back fence for their children and we would be able to see it from the BBQ area. After he went through the entire sale and purchase agreement, he then asked us to contact our lawyer before we signed it. What a mission! When our offer was accepted the salesperson then gave us a deposit slip with details so that we could pay our deposit into his agency’s trust account. Super excited, we move in three weeks.Task
    • Identify two sections and subsections from the Act and three rules from the Code that are relevant.
    • Justify whether misconduct or unsatisfactory conduct or no further action applies (if unsatisfactory or misconduct applies, also identify the section that relates).
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v. We purchased our dream home recently and within a few days of moving in, the neighbours told us that a developer had purchased the adjacent land and was preparing to start a residential subdivision of 23 homes. He also had resource consent in place to remove the native bush from the back boundary. Not only are we going to be subject to a substantially long period of building works, dust and noise, but we are also going to lose the privacy which was the main reason we purchased this home. The neighbours also told us that the previous owners of the property were the salesperson’s parents. The neighbours appeared very surprised when we told them we had no idea of this either, as they said everyone knew why they were selling, especially their son.

Task

  • Identify two sections from the Act and three rules from the Code that are relevant.
  • Justify whether misconduct or unsatisfactory conduct, or no further action applies (if unsatisfactory or misconduct applies, also identify the section that relates)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.)

i. You are looking at the office advertisements in the local newspaper when you notice that a ‘For Sale’ property advertisement placed by the new salesperson Sydney, was missing some very important information. ‘Ferngully Realty Limited, Licensed under the Real Estate Agents Act 2008’ is not showing anywhere on the advert. As the training co-ordinator you need to address this straight away to make sure it doesn’t happen again.

Task

What advice would you give in this scenario? Include reference to the appropriate section and subsections of the Real Estate Agents Act 2008 to justify your answer.

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  1. You are discussing the importance of ‘renewal of licence’ in one of your training sessions when a salesperson, Brad, who is new to your office, suddenly realises his licence is about to expire, and he didn’t receive a renewal notice from the REA, like he did the previous year. Brad has been in real estate for six years but has recently moved suburbs and changed agencies to now work for Ferngully Realty.TaskWhat advice would you give in this scenario? Explain the reason that the renewal notice from the REA was not received. Reference two sections from the Real Estate Agents Act 2008 which relate to justify your advice and explanation.
  2. You are enjoying your lunch break when you hear a conversation between two of the salespeople in your office. One of the salespeople, Marc has recently listed a property for sale that one of the other salespeople, Stevie, really wants to purchase for herself. Stevie says to Marc, ‘I really want to purchase the property in Bay Street, but I can’t be bothered explaining the ‘conflict of interest’ and following protocol. It’s too hard organising a valuation and all that stuff you have to do. I think I will just get a friend to purchase the property in her name using ‘and/or nominee’, and then I can change it into my name on settlement. Is there any other interest?’ Marc replies, ‘mmm well no there isn’t any other interest right now, but do you think that’s a good idea?’TaskWhat advice would you give in this scenario? Include reference to the appropriate sections of the Real Estate Agents Act 2008 and the Real Estate Agents (Duties of Licensees) Regulations 2009 to justify your answer.

Task 4: Complaints Process

i. The Branch Manager, Jane, has recently had two complaints brought to her attention that she believes could have been handled better. It appears not all the sales team are familiar with the complaints process and therefore not able to correctly advise a complainant, which of course may make things worse. Jane wants to ensure if any complaints are made to any of the salespeople, that they will be able to calmly and confidently talk the complainant through the process of where to find any relevant information, and what their options are for making a complaint. Jane has asked you to prepare a handout for the next sales meeting.

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Task

The handout must explain:

  • how the salespeople at Ferngully Realty are expected to respond to a complainant
  • how to explain the complaints process to a complainant if needed. Refer to the relevant parts of the Code in your handout (use 150 to 250words in your answer.
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Marking Schedule

Task 1

LO

N/A

Achieved

Apply the Real Estate Agents Act 2008 in context to answer questions in relation to requirements for licensing in the real estate industry.

LO 2

The inaccurate application of the Real Estate Agents Act 2008 in relation to requirements forlicensing in the real estate industry in context.

The accurate application of the Real Estate Agents Act 2008 in relation to requirements for licensing in the real estate industry in all contexts.

Task 2

LO

N/A

Achieved

Identify and apply relevant sections of theReal Estate Agents Act2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules2012 (the Code) to identify whether misconduct or unsatisfactory conduct have been demonstrated in context or not.

LO 1

The inaccurate application of the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code) to identify whether misconduct or unsatisfactory conduct have been demonstrated in context.

The accurate application of the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code) to identify whether misconduct or unsatisfactory conduct have been demonstrated or not in all contexts.

Task 3

LO

N/A

Achieved

Apply appropriate legislation to scenariosdealing with duties related to the main duties relating to real estate work.

LO 3

The inaccurate application of appropriate legislation in the given scenarios dealing withduties related to the main duties relating to real estate work.

The accurate application of appropriate legislation in all of the given scenarios dealing with duties related to the main duties relating to real estate work.

Task 4

LO

N/A

Achieved

Explain the complaintsprocess and how salespeople should respond to complaints.

LO 1

The inaccurate explanation of the complaints process and how salespeople should respondto complaints.

The accurate explanation of the complaints process andhow salespeople should respond to complaints.

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