BSRV4601 Fundamentals of Real Estate

Assessment 1

Learning outcomes

1 Apply codes of conduct, rules, regulations, and legislation in the role of a real estate licensee.

Instructions

Complete and submit your assessment according to the Open Polytechnic's Assessments webpage. This includes information on academic integrity, word guidelines and referencing.

• Include your name, student number and the assessment

• Number your pages.

Submission

• Submit your assessment in one

• Submit your work through your iQualify

• Emailed assessments will not be

• You will receive an automated notice following

By submitting your assessment, you confirm that it is your own, original work.

Assessment scenario

This assessment sees you working as the relieving Office Manager and Training Coordinator at the Bilderberg Real Estate Agency. The agency has hired a number of new salespeople who need to be trained in the fundamentals of real estate. The permanent Office Manager is away on leave and has asked you to complete some tasks for her while you are covering. These include:

• responding to real estate licence eligibility questions

• handling some complaints that have come through

• dealing with issues that have surfaced within the

Task 1: Eligibility

Message from the Office Manager: We have had several enquiries regarding eligibility for a career in the real estate industry. I was hoping to be able to respond to these enquiries before I went on leave, however I ran out of time. Please draft responses to the following enquiries.

Each response must include and explain the relevant sections and subsections of the Real Estate Agents Act 2008 that apply to the enquiry.

(Word count guideline: up to 70 words per response)

a) Enquiry 1: I noticed you are looking for new licensed salespeople to join your Agency. I dont have a real estate licence yet, but I would like to become a salesperson. What criteria are needed to be entitled to apply for a salespersons licence?

b) Enquiry 2: I am considering my long-term career options in real estate. Once I have obtained my salespersons licence, what experience and other criteria would I need to meet before I could apply for a branch managers licence?

c) Enquiry 3: I am going to be studying for the next two years and wont be needing my salespersons licence. However, I dont want to cancel my licence as I plan to come back into the industry at a later stage. Is there an option to have my licence put on hold?

d) Enquiry 4: I have been working for the past 16 months as a personal assistant for a salesperson. They no longer want to work in the real estate Is it possible to have their licence transferred into my name?

e) Enquiry 5: I am keen to pursue a career in real estate as a salesperson, but I am worried that a previous conviction will prohibit me from getting licensed. I was convicted of a dishonesty crime 15 years ago. Do you think I will meet the licensing criteria? (Note that dishonesty crimes include theft, burglary, fraud and tax evasion).

Task 2A: Complaints Identifying Sections of the REA Act and Rules of the Code

Message from the Office Manager: Read the following complaints and state the specific legislation that applies to each situation. This means you must name the section(s) of the Real Estate Agents Act 2008 and the rules of the Professional Conduct and Client Care Rules 2012 The Code, that have been breached or complied with. (Note: Sections 72 and 73 are not required for this task).

(Word count guideline: up to 70 words per response)

Complaint 1

Consider the most relevant section and rules that apply to this scenario.

1. Identify one section from the

1. Identify three rules from the Code that have been

I was selling my property and agreed to pay $4,000 for advertising costs. The salesperson said I needed to pay before my marketing campaign could start and gave me a bank account number to make the payment. I paid straight away. A few days later, his office sent through the invoice, which had a different bank account number on it. When I phoned the office, I discovered I had paid my money into the salespersons personal bank account. I was very concerned my money had been put at risk and I felt misled. The agency made a sincere apology and said they would recover the funds from the salesperson.

Complaint 2

Consider the most relevant section and rules that apply to this scenario.

1. Identify one section from the

1. Identify three rules from the code that have been breached.

On Friday afternoon, I signed a sole agency agreement to list my property for sale. I told the salesperson that I did not want any buyers to come and view my property until the following Tuesday, as I had some personal matters to attend to. On two separate occasions over the weekend the salesperson phoned me to request viewing times, insisting that his buyers would only be available to view on the weekend. I declined both requests. The salesperson phoned me again on Monday morning to say he would be at the property to show the sales team through in approximately 30 minutes. When I declined and reminded him of my initial instructions, he made the comment Well do you want to sell or not. I immediately requested to cancel the sole agency agreement.

Complaint 3

Consider the most relevant section and rules that apply to this scenario.

1. Identify one section from the

1. Identify three rules from the code that have been

I was very keen to purchase 24 Baxter Street and asked the salesperson, Tim, to prepare an offer. I told Tim I was a first home buyer and that I wasnt sure of the process. Tim said not to worry and that he would go through the process with me. After preparing the offer, Tim asked me to sign it. I felt a little uneasy, as there were some things Tim hadnt explained very well, so I decided to have my lawyer check things over before I signed it. My lawyer was concerned with the number of mistakes in the sale and purchase agreement and advised me to speak with Tims branch manager. I found out that Tim had only been working as a salesperson for two weeks and should have been supervised by his branch manager while preparing the offer for me.

Complaint 4

Consider the most relevant rules that apply to this scenario.

1. Identify two rules from the code that the salesperson has complied

We had invited a local salesperson, Suzy, over to list our home for sale. We told Suzy that we were selling because our property had weathertightness issues and we could not afford to do any of the remedial work ourselves. Suzy said she would need to disclose the weathertightness issues to any potential customers. We did not want that information disclosed and asked her not to tell anyone. Suzy said that she would not be able to list our property for sale if she could not advise potential customers of the weathertightness issues and declined to list our property with her agency.

Complaint 5

Consider the most relevant section and rules that apply to this scenario.

1. Identify one section from the

1. Identify three rules from the code that have been

I recently listed my property for sale with one of your sales team, Jack Porter. He told me I would receive a copy of the agency agreement within 48 hours of signing it. After several phone calls and emails to Jack, we finally got a copy two weeks later. On reviewing the agency agreement to check what the estimated commission would be, I also discovered the agency agreement had no reference to the commission payable.

Task 2B: Standards of behaviour Misconduct or Unsatisfactory Conduct

Breaches of the Real Estate Agents Act 2008 and the Code can result in a licensee being found guilty of unsatisfactory conduct or misconduct. Please review the five complaints from Task 2A and answer the following questions.

a) Refer to the five complaints noted in Task 2A and assess the behaviour of the salesperson. Identify if the salespersons behaviour in each case was unsatisfactory conduct, misconduct or satisfactory conduct.

• Complaint (1) Choose one Unsatisfactory conduct, misconduct or satisfactory conduct.

• Complaint (2) Choose one Unsatisfactory conduct, misconduct or satisfactory conduct.

• Complaint (3) Choose one Unsatisfactory conduct, misconduct or satisfactory conduct

• Complaint (4) Choose one Unsatisfactory conduct, misconduct or satisfactory conduct

• Complaint (5) Choose one Unsatisfactory conduct, misconduct or satisfactory conduct

b) Complete the sentences below by filling in the blanks with the correct sections of the REA Act and rules of the Code:

Section............. of the REA Act describes unsatisfactory conduct.

Section............. of the REA Act describes misconduct.

Rule............ of the Code states that a licensee who suspects another licensee to be guilty of unsatisfactory conduct.............. report it to the Authority.

Rule............ of the Code states that a licensee who suspects another licensee to be guilty of misconduct................ report it to the Authority.

Task 3: Complaints Process

It is important that all salespeople can clearly explain and guide a complainant through the complaints process.

Summarise the complaints process, ensuring you explain it in your own words.

In your summary, refer to the Professional Conduct and Client Care Rules, the Code, to specifically identify and explain the relevant rules that apply. Your summary should include, but not be limited to, the following points.

• The options a complainant has for making their

• The advice you must provide to prospective clients and customers about the complaints process, before they enter into any contractual agreements.

• The appropriate time to engage your Branch Manager/Agent in the

• Where clients or customers can find information regarding the complaints

• The Rule numbers from the Code that apply to complaints and support your

Task 4: Issues around the office

As the relieving Office Manager and Training Coordinator at Bilderberg Real Estate Agency, youve been delegated some important tasks. The Office Manager has noticed several issues around the office that need addressing but hasnt had the time to handle them. She has now asked for your assistance. Your task is to read the details of these issues and offer your advice on how to resolve them, ensuring you reference the relevant sections of the Real Estate Agents Act 2008.

Provide your detailed advice for each of the following scenarios.

(Word count guideline: 150 words for each answer)

Scenario 1

1. The branch manager is helping one of the new salespeople, Nick, prepare for an appointment to present an offer to the clients at Batton Street. She reminds Nick that he will need to take a copy of the correct guide to give to the client (seller). Nick picks up a copy of the New Zealand Residential Property Agency Agreement Guide to bring. Luckily, the manager notices he has picked up the wrong guide.

What advice should the manager give Nick about the two different guides? Your explanation must include the following.

• The full name of the guide that Nick must give to his client when preparing the offer and the relevant section of the Act that relates to this guide.

• The full name of the second guide, when it should be given and who it should be given to, and the section from the Act that relates to this guide.

• A brief explanation of the main difference between the two

Scenario 2

2. Hallowes has come to the office to meet with Aroha, one of the salespeople. He is thinking about selling his property and Aroha is hopeful to secure his business. During the meeting Mr. Hallowes asks Aroha if he can see a copy of her real estate licence. Certainly, Mr. Hallowes, I have a copy right here. Thank you, Aroha. Oh, I see it is about to expire in one week, will you still be able to continue as my salesperson?

• How should Aroha respond to Hallowes enquiry regarding her licence? What does she need to do to ensure her licence doesnt expire?

• Identify two sections from the Real Estate Agents Act 2008 that apply in this

Scenario 3

3. The office has received a complaint from some clients regarding one of the branchs salespeople.

We were selling our home on Main Street when our salesperson, Bob, presented us with an offer. We werent very keen to accept the offer, as it seemed quite low compared to the appraisal price Bob had originally supplied us with. We told Bob we would like to take some time to consider our options, but he was very persistent that we should seriously consider this offer as the buyer had another property she was going to purchase if she didnt get our one. We didnt want to miss a sale, so we agreed to sign the offer. The next week Bob returned with the buyer who had come to complete her building inspection. I overheard them talking and realised the buyer was Bobs daughter! We believe this is a conflict of interest and that we should have been advised of their relationship.

• Explain the process Bob should have followed if he wanted to sell the property to his daughter.

• Identify three sections from the Real Estate Agents Act 2008 that apply to this scenario and name the prescribed form that must be used in this conflict- of-interest process.