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Identify Legal and Ethical Requirements of Property Sales to Complete Agency Work (CPPDSM4008A)

12 Feb

Assessment activities
The activities contained in this document are outlined below.
Part 1: Short answer questions
•    This section consists of 14 short-answer questions
•    Question 1, 3, 4, 5, 6, 9, 13 & 14 consist of multiple parts
Part 2: Case study
•    This section consists of 4 parts
•    Each part is based on the provided scenario
Part 3: Work project
•    This section consists of 3 parts
•    Part A requires that you attend an open for inspection and write a short report.
•    Part B consists of 2 questions
•    Part C requires that you complete a sales agency agreement for the sale of a property. Use the details provided to you to complete the agreement. You may also assume or use hypothetical information which has not been provided to you, to complete the agency authority to act/agency agreement.
We are here to help
If you have any questions about this assessment you can email us at realestate@kaplan.edu.au. You can expect an answer from one of our technical advisers or student support staff.

Part 1: Short-answer questions
Question 1
Briefly explain each of the following titles to land (i.e. land tenure ship):
(a)        Free hold
<type your answer here>

(b)        Lease hold
<type your answer here>

(c)        Torrens Title
<type your answer here>

(d)        Strata Title
<type your answer here>

Question 2
Describe three (3) methods that you personally might use to prospect for new listings as a salesperson.
<type your answer here>

Question 3
When you are listing a property you will need to be able to explain the different methods of sale available to a seller, as well as the advantages and disadvantages of each, so that the seller can assess the best method of sale for their situation.
(a)        Using this table below, explain each of the three (3) common methods of sale shown below and provide an example for each of a type of property or type of client circumstances that would be suited to each of the method of sales. Complete the table below to ensure you have covered all parts of this question.
Method of sale     Your description of this type of sale method    Your example of type of property/client circumstances suited to sale by this sale method
Private Treaty    <type your answer here>    <type your answer here>
Auction    <type your answer here>    <type your answer here>
Tender    <type your answer here>    <type your answer here>

(b)        Complete the table below by listing one (1) advantage and one (1) disadvantage for each method of sale (from the agents or vendors viewpoint):
Method of sale     One advantage of this method of sale    One disadvantage of this method of sale
Private Treaty    <type your answer here>    <type your answer here>
Auction    <type your answer here>    <type your answer here>
Tender    <type your answer here>    <type your answer here>
Question 4
(a)        What is the purpose of a marketing plan for a property for sale?
<type your answer here>

(b)        Describe at least three (3) things that should be contained in a marketing plan for a property for sale.
<type your answer here>

Question 5
(a)        Name the authority that registers land title in your state.
<type your answer here>

(b)        List two (2) things that are contained on a certificate of title to land and why is it important for you to check this information against the agency authority to act/agency agreement?
Item contained in Certificate of Title    Why is it important to check this item against the authority to act/agency agreement?
1.    <type your answer here>    <type your answer here>
2.    <type your answer here>    <type your answer here>
Question 6
(a)        Explain why having effective communication skills is so important when working as a real estate sales representative.
<type your answer here>

(b)        List three (3) different interpersonal communication techniques that you might use when addressing client concerns and dealing with conflict in a real estate sales role. Provide a practical example of when or how you would use each of these each of these techniques.
<type your answer here>

Question 7
Explain the basic process for receiving, handling and paying out monies if the agent holds the sales deposit in trust as a stakeholder.
<type your answer here>

Question 8
Name and briefly explain the two (2) different ways a property can be owned under free hold tenure (also known as fee simple tenure), if it is owned by two or more people.
<type your answer here>

Question 9
(a)        What documentation is required from the vendor prior to completing an agency authority to act/agency agreement on behalf of a vendor/seller? (HINT: consider documentation required from the vendor before signing the authority/agreement. This relates to ID and verification of owners/property)
<type your answer here>

(b)        What specific legislative requirements apply in your state for an agency authority to act/agency agreement to be deemed as valid? (HINT: consider any warnings/prompts that must be explained to the vendor. What must the agent do regarding the selling price, commission?)
<type your answer here>

Question 10
Describe any conditions and guidelines imposed on you by your state’s regulatory body, Act and Regulations in relation to giving the seller your estimate of what their property should sell for.
<type your answer here>

Question 11
List the contractual documents related to the sale of a property in your state.
<type your answer here>

Question 12
Briefly explain the legislative requirements in your state regarding communicating offers from prospective purchasers to sellers.
<type your answer here>

Question 13
(a)        Explain where in your state’s legislation you can locate information about ethical and conduct standards that apply to the activities of real estate salespeople?
<type your answer here>

(b)        In your own words, explain two (2) of the above ethical and conduct standards
(identified in part (a)) that apply to working in sales.
<type your answer here>

Question 14
Name and summarise the sections of your agent state/territory legislation relating to the following areas:
(a)        Disclosure of information to prospective purchasers (including disclosure of material fact).
(HINT: Identify and name the sections of your agent state/territory legislation relating to what an agent should and should not disclose to potential buyers including disclosure about material facts)
<type your answer here>

(b)        Salespeople or agents obtaining a beneficial interest (such as purchasing a sales property for themselves) and any restrictions imposed, including penalties to agent if they breach these restrictions.
(HINT: Identify and name the sections of your agent state/territory legislation relating to beneficial interest – consider what the agent must do if they or a colleague or a relative does want to buy the property)
<type your answer here>

Question 15
What information would you record in a sales client/customer database and why? List five (5) items.
<type your answer here>

Part 2: Case study
James is selling his property through ABC Real Estate Pty Ltd where you work as a salesperson. You have the property listed at $700,000. The agent’s sales fee is 3.3% of the selling price, inclusive of GST.
(a)        The agency you are employed in as a salesperson has several prospective buyers interested in the property. One of them approaches you privately and offers to pay you (personally) $2,000 if you ensure that they are the successful purchasers of the property, saying that there is no need to let the agency manager or the client know. Can you legally accept this money, explain why or why not? What would the possible legal ramifications be if you accepted this money?
<type your answer here>

(b)        Buyer A submits an offer of $658,000 which the vendor accepts. At what point is the buyer committed to purchase (HINT: consider any cooling off requirements in your legislation)?
<type your answer here>

(c)        The property eventually sells for $658,000. What will ABC Real Estate sales fee be equivalent to in terms of dollars?
<type your answer here>

(d)        At what point will ABC Real Estate be eligible to claim sales commission on James’ property?
<type your answer here>

Part 3: Work project
Part A
Attend an open for inspection for a property for sale through a real estate agent. Record in your assessment submission the details of the inspection: address, time, date, real estate agent etc.
Write a short report describing how the agent proceeded with the open for inspection, for example you should describe:
•    How you found out about the Open for Inspection (example, how did the agent market the property).
•    How the real estate salesperson conducted the Open for Inspection.
•    What marketing materials if any were available at the Open for Inspection?
•    What is the most common method of sale of residential properties in this area and why do you believe this is the case?
•    Note any Work Health Safety issues eg: fragile or valuable items, risks to physical safety of agents such as trip hazards
Property details
Address     <type your answer here>
Date    <type your answer here>    Time    <type your answer here>
Real Estate agent    <type your answer here>
Report
<type your answer here>

Part B
Using the property you are currently living in (whether you own it or lease it):
(a)        Suggest the best method of selling the property including your reasoning.
<type your answer here>

(b)        What marketing strategies would you think should be used to market this property, including your reasoning?
<type your answer here>

Part C
(a)        Complete an authority to act/agency agreement for sale of this property.

Date of listing preparation and appointment:
Use date you are completing this assessment

Vendor Details
Vendor Name:         Ms Rashid Nagarajan
Vendor Address:         14/16 Vendor Lane, Vendorville 1234
Vendor Contact:        Phone: 3007-8888, Fax: 3007-8889

Vendor Solicitor details:
Solicitor Name:         Rowland and Company Lawyers (Attention: Mr. Richard Hadwood)
Solicitor Address:        Suite 10, Regis Tower, Park Rd, Somewhere
Solicitor ABN:        12567-776
Solicitor Contact        Email: rhadwood@rowland.com.au, Phone: 3007-1234    , Fax: 3007-1233

Property being listed for sale:
Property Address:     123 Dunmore Terrace, Somewhere
Property Details:        This property is a 3 bedroom brick home with a single lock up garage.
The home is listed on the council search as a single detached residential
dwelling.
Property Description:     Lot 2 on Deposited Plan 18907, County Stanley, Parish Somewhere.
Sale method:            Private Treaty

Agent details:
Agent Name:             ABC Real Estate Pty Ltd
Trading as:             Trusty Real Estate
Agency Address:         Shop 2/ 15 Park St, Busy Town
Contact:             Phone:     3007-9079, Fax: 3007-9099
Agent ABN:         24561
Corporation License No.: 12345678

Salesperson details:
Salesperson Name:    You are the salesperson. Insert your name.
Registration number:     5554- 6621. This is your salesperson registration number.
You are authorised as a salesperson to sign off an agency agreement on behalf of the agency.

Estimated selling price:     $680,000 to 700,000
Listing Price:         The owner’s instructed listing price is $735,000.
Fees:             Use fees that are commensurate with average agent fees in your
geographic area/state.

Type of listing: The vendors have agreed to list the property as an exclusive agency for 60 days from the date of appointment. They have also agreed to retain the agent’s service with an open listing if the property does not sell within the 60 days.

Start date of authority: Use the date on which you are completing this agreement.

Expenses: The vendor has agreed to invest $3,500 in advertising and promotion. They are also happy for the agent to charge them the cost of a title search. This is estimated at around $15.50.

Agent Disclosure: The agent will be receiving a rebate from the Local Gazette newspaper. The rebate will be a payment of approximately $300 for the advertising placed for this property.

Consumer Guide: Has been provided to the client on XX/XX/20XX (date will be before or on the date the agreement is signed (date that this assessment is completed)).

Advertising and Marketing: Marketing program has been prepared and is attached to Agreement.

Special instruction: There is a security alarm located in the property. Security alarm must be turned off immediately prior to inspections and then turned on again at the end of each inspection.
Please see security code details in agency key cupboard.

Conjunctions: Agent is to refer back to client before agreeing to conjunct.

You may assume or use hypothetical information which has not been provided to you above, to complete the agreement.

NOTE:
•    South Australia: As there is a legislative requirement in South Australia to state a figure (e.g. $330,000), rather than a price range, you must refer to the following information before completing this form: http://www.cbs.sa.gov.au/consumers/consumer-advice/buying-or-selling-a-home/selling/

(Please note: generally the agent WOULD NOT sign the agreement on behalf of a vendor. For training purposes only, this question requires you to include mock signatures to demonstrate that you know where relevant parties would sign)

(b)        After this agreement has been completed and signed by the parties, where would this agreement need to be stored and how would you ensure client privacy and confidentiality, given the amount of personal information in the documents.
<type your answer here>

(c)        A prospective buyer is interested in the property as an investment. They ask you [the sales agent] if you think it will provide them with a good secure future investment income? What should you say?
<type your answer here>

 
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Posted by on February 12, 2017 in Academic Writing

 

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