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CPP41419 Case Study based Assignment

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Added on: 2022-12-12 09:34:20
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Brent is is the estate agent who is selling a residential property on behalf of his clients, Maeve and Krista who have owned the property for five years. Maeve and Krista have told Brent that they wish to sell and move to a new neighbourhood because the property was the location where there had been a serious violent crime committed. As a result, they no longer wish to live there and they have engaged Brent to assist them in achieving the sale of the property.

Brent knows the neighbourhood well and is normally confident that he will be able to achieve a good price for the property, but he is cautious about how to approach the sale of this particular property. He too has heard the stories about the crime which has been committed and he is worried about how this might affect the sale price. He has a discussion with Maeve and Krista about the issue and they ask him to avoid telling any potential buyers about the property’s history. He consults with his agency principal and asks for direction about how to manage the situation and is told that he should always act in the best interests of his clients, no matter what.

  1. What is a ‘material fact’ and how does it apply in this situation? What is one other example of a material fact that should be disclosed to a potential buyer?
  1. Does Brent owe a duty to Maeve and Krista as the clients to act in their best interests?
  1. Does Brent owe a duty to any other parties who may be involved in a real estate transaction?
  1. Are there two potentially contradictory duties which affect Brent’s choices in this situation? What are they, and how should he balance these duties?
  1. Who is the regulator who might be involved in the situation if Brent acts incorrectly?
  1. Complete this table to show one risk for each of the parties listed in relation to consumer protection and ethical behaviour:





Brent’s boss (agency principal)


Brent’s real estate agency


The real estate industry


Maeve and Krista (the vendors)


A potential buyer of the property


  1. Locate the code of practice from the peak body for real estate in your local state or territory, or the code of practice of the REIA; any relevant guidance documents that can assist you with the interpretation of legislation that relates to stigmatised properties in real estate transactions; and the website for the consumer protection authority in your local state or territory. Use these sources to assist you to write a paragraph explaining how Brent should use ethical decision making to decide how to respond to his clients Maeve and Krista.

Brent decides that he will follow the direction of the agency principal and avoid telling any potential buyers about the property’s history. He designs advertising material which highlight the benefits of the property and works towards a quick sale with a short settlement so that there is less chance that there will be too much publicity about the sale of the property. He tells Maeve and Krista that there is no need to tell anyone about the history of the property and that his best advice is to sell the property quickly and quietly. He does not consult with anyone else or seek advice beyond that provided by his agency principal.

  1. Should Brent make the decision to follow the advice of his agency principal? Why or why not?
  1. Should Brent seek advice from anyone else before he goes ahead with organising the sale? If so, who?
  1. Tick the behaviours that you believe Brent has shown in this situation:
  • Client focus
  • Client protection
  • Honesty
  • Professionalism
  • Skill
  • Diligence
  • Care
  • Fairness
  • Respect
  • Clear communication
  • Deceptive conduct
  • Misleading conduct
  • Illegal conduct
  • Unethical conduct
  • Uploaded By : Katthy Wills
  • Posted on : December 12th, 2022
  • Downloads : 0
  • Views : 172

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