CPPREP4002 Real Estate Legislation & Ethical Practice Assessment Guide

Project Assessment

Criteria

Unit code, name and release number

Cluster name: Cl_LegalRequirements_LMS CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)

CPPREP4003 - Access and interpret legislation in real estate (Release 1)

Qualification/Course code, name and release number

CPP41419 - Certificate IV in Real Estate Practice (Release 1)

CPP31519 Certificate III in Real Estate Practice (Release 1)

Statement of Attainment in Real Estate Practice (Assistant agent)

Student details

Student number

Student name

Assessment Declaration

This declaration only needs to be completed if you are not submitting your assessment online.

This assessment is my original work and no part of it has been copied from any other source except where due acknowledgement is made.

No part of this assessment has been written for me by any other person except where such collaboration has been authorised by the assessor concerned.

I understand that plagiarism is the presentation of the work, idea or creation of another person as though it is your own. Plagiarism occurs when the origin of the material used is not appropriately cited. No part of this assessment is plagiarised.

Student signature and Date

Version:2020909

Date created:1 July 2019

For queries, please contact:

Technology and Business Services SkillsPointUltimo

2020 TAFE NSW, SydneyRTO Provider Number 90003 | CRICOS Provider Code: 00591E

This assessment can be found in the Learning BankThe contents in this document is copyright TAFE NSW 2020, and should not be reproduced without the permission of the TAFE NSW. Information contained in this document is correct at time of printing: DATE @ "d MMMM yyyy" * MERGEFORMAT 7 December 2020. For current information please refer to our website or your teacher as appropriate.

Assessment instructions

Table SEQ Table * ARABIC 1 Assessment instructions

Assessment details Instructions

Assessment overview The objective of this assessment is to assess your knowledge and performance required to prepare for interpreting legislation, identify techniques for keeping up to date with legislation and understand legislation related to real estate operations in NSW.

Assessment Event number 1of 3

Instructions for this assessmentThis is a project-based assessment and will be assessing you on your knowledge and performance of the unit.

This assessment is in two parts:

Legislative Framework and operations

Common legislation

and includes assessment feedback.

Submission instructions On completion of this assessment, you are required to upload on the learning platform (for example the TAFE Moodle), for marking.

You may submit this to your teacher if you are not studying online or unable to submit via a learning platform.

Ensure you have written your name at the bottom of each page of your assessment.

Submit the following documents:

This completed assessment

You must keep a copy of all electronic and hardcopy assessments submitted to TAFE and complete the assessment declaration when submitting the assessment.

What do I need to do to achieve a satisfactory result? To achieve a satisfactory result for this assessment all questions must be answered correctly.

What do I need to provide? Computer with Microsoft Office, access to internet

What will the assessor provide? Access to the learning platform as required (Learning Management System).

Due date and time allowed Indicative time to complete assessment: One (1) hour.

For the due date, refer to the Unit Assessment Guide if face to face delivery, or the Delivery Timetable for online delivery.

Supervision This is an unsupervised, take-home assessment. Your assessor may ask for additional evidence to verify the authenticity of your submission and confirm that the assessment task was completed by you.

Assessment feedback, review or appeals Appeals are addressed in accordance with Every Students Guide to Assessment.

Specific task instructions

Scenario:

Youre working for Azure Beach Realty Group (ABRG) as a sales assistant. ABRG is a small to medium-sized agency operating in Azure Beach NSW and surrounding areas. Its operations include residential property management and sales. ABRG also has a small portfolio of commercial and industrial properties. Real estate operations are conducted under the one roof where the property managers and sales staff can interact.

The ABRG Manager, Sarah Hampden, understands that legislation is an important issue for real estate operations. Shes concerned that many of the staff members seem to be unsure of where to find legislation, how to understand it and how to keep up to date with changes. She has asked you to create a draft non-technical guide for the staff members to help them with these aspects of the legislation.

Part 1: Legislative Framework and operations Legal

Legal framework

Describe each of the following legal frameworks:

Common law.

Contract law.

Equity law.

Statute law.

2. Components and structure of legislation

Describe each of the following key components and structure of legislation:

Acts.

Regulations.

Subordinate legislation

Amendments.

Mandatory codes of practice.

Long title.

Short title.

Commencement date.

Application.

Contents.

Definitions.

Headings.

Parts.

Divisions and subdivisions.

Clauses and subclauses.

Schedules.

Appendices.

3. Interpretation Aids and problems

Using the Interpretation Act 1987, Part 2 Words and expressions, a legal dictionary and your student workbook, explain the following terms concerning interpreting legislation and give an example correct use of each term/expression in any piece of real estate legislation. An example has been provided for you.

TERMS/expressions How are they used when interpreting legislation

And/or And/or means that either one or both of the options is required. It is NOT a good practise using these term in legal writings.

An agent may hold and/or a certificate of registration or licence to sell residential property in NSW

Gender hierarchy includes May, should and must Write a definition of each of the following rules of interpretation, this legal dictionary can assist you in responding to this task.

Literal rule.

Golden rule.

Mischief rule.

Purposive approach.

Explain the following statements, using examples related to real estate:

Express mention of one thing to the exclusion of another (Expressio Unius Est Exclusio Alterius)

Words interpreted through their connection with other words i.e. in context (Noscitur a sociis)

Words with the same meaning (Ejusdem Generis).

Describe how each of the following external aids can assist you in interpreting legislation and why you would use them:

Interpretation Acts Acts Interpretation Act 1901 and Interpretation Act 1987 No 15Hansard/parliamentary papersLegal dictionaries

Previous judicial interpretations of legislation.

a.Interpretation Acts:

b.Hansard/parliamentary papers:

c.Legal dictionaries:

d.Previous judicial interpretations of legislation:

Identify and explain three common problems that can occur when interpreting legislation.

Identify and analyse two consequences for misinterpreting legislation, using examples.

Why is it important to interpret/read a piece of legislation using the individual sections (including the purpose/objectives, definitions/interpretation, headings and notes) and the legislation as a whole? Provide an example from the Property and Stock Agents Act 2002 (NSW), that would demonstrate the importance of reading the Definitions section of the act, as well as another relevant section of the act.

Why are some pieces of legislation related to other pieces of legislation? Give an example.

4. Legislation in real estate

Identify the legislative document and schedule that requires all agents in NSW to have Knowledge of Acts and Regulations. In dot point form list the areas of legislation covered.

In the above questions, you have identified an agent must know the acts and regulations! Explain your legal responsibilities in regards to accessing, reading, interpreting, applying and maintaining knowledge of relevant legislation?

Areas Legal responsibility

Accessing legislation Reading legislation Interpreting legislation Applying legislation Maintaining/updating knowledge of legislation Legislation changes frequently in the real estate industry, describe two techniques you can use to identify and track changes and amendments to legislation.

Demonstrate that you have used these techniques ( from question 20) by including screenshots.

List the full title of the legislation and subordinate legislation, including a brief description that applies to real estate in NSW for each of the following areas (at least one piece of legislation and one piece of subordinate legislation for each this may include Commonwealth and/or state legislation):

Secret commissions.

Environmental sustainability.

Employment and industrial relations

5. Accessing legislation and advice

List three reliable online sources where you would find legislation that applies to real estate operations in NSW include the link to each website.

You are required to access and analyse the following pieces of legislation and complete the table below:

Competition and Consumer Act 2010 (CTH)

Foreign Acquisitions and Takeovers Act 1975 (CTH)

Environmental Planning and Assessment Act 1979 (NSW)

Analysis areas Competition and Consumer Act 2010 Environmental Planning and Assessment Act 1979 Foreign Acquisitions and Takeovers Act 1975 (CTH)

The full title of the legislation Purpose of the legislation Key components of the legislation Two breaches of the legislation b. You are required to access the Property and Stock Agents Act 2002 and Regulations 2014 (NSW) and identify the penalty units and maximum monetary penalty for the following breaches:

Section NO Section name Penalty units & maximum monetary value

52 (1)

Individual :78 Company:

Describe the most effective way to access current and point-in-time versions of the legislation. Demonstrate the techniques you used to access the current and point-in-time version of the Environmental Planning and Assessment Act 1979 (NSW) by including screenshots.

Which regulator would you contact if you need assistance with interpreting the Competition and Consumer Act 2010 (CTH)? What is the purpose and duties of that regulator? Where else could an agency go for advice on legislation?

Misinterpretation of legislation can lead to client complaints, identify and explain three communication strategies you could use to deal with complaints. (word count 25-50 words for each strategy)

Part 2: Legislation and ethical conduct

This Part of the assessment is replicated in CPPREP4001_AE_Pro_1of1 Part 4, if you have successfully completed that do not repeat your efforts here. Please copy and paste your answers below from CPPREP4001_AE_Pro_1of1 Part 4.

Identify the correct legislation (acts and regulations) for each of the following areas, including the full title of the legislation and a link to where it can be found. Explain the aim and purpose of these acts and how they are relevant to your work as an agent.

Areas Full name of Legislation and/or subordinate legislation Aim and purpose Relevance to your work role

Act and regulations that govern all real estate operations in NSW Hyperlinks:

Real Estate Licencing Hyperlink:

Privacy and confidentiality Hyperlink:

Residential tenancies Hyperlink:

Retail tenancies Hyperlink:

Equal Employment Opportunity Hyperlink:

Anti-Discrimination Hyperlink:

Work Health and Safety Hyperlink:

Analyse (identify in first column, then explain) a code of conduct/regulation for each row, applicable in the Real Estate industry.

Code of conduct/regulation Analysis

Code at Business level

Code at Industry Level

Regulation

Identify and explain the role of the regulatory body for real estate practices in NSW? (word count 40-60 words)

Expand the acronyms below, explain their role and function in the property industry. (10-20 words each cell)

REA REEF REI and REI NSW Property Council of Australia

Assessment Feedback

This section is to be completed by the assessor. Once feedback has been provided by the assessor you will be given the opportunity to respond.

Additional evidence for verification of assessments

Assessment outcome

Satisfactory

Unsatisfactory

Assessor Feedback

Has the Assessment Declaration been signed and dated by the student?

Are you assured that the evidence presented for assessment is the students own work?

Was the assessment event successfully completed?

If no, was the resubmission/re-assessment successfully completed?

Was reasonable adjustment in place for this assessment event?If yes, ensure it is detailed on the assessment document.

Comments:

Assessor name, signature and date:

Student acknowledgement of assessment outcome

Would you like to make any comments about this assessment?

Student name, signature and date

NOTE: Make sure you have written your name at the bottom of each page of your submission before attaching the cover sheet and submitting to your assessor for marking.

Rogue Agent Disqualified for 10 years

8 August 2009 - Obtained from the NSW Fair Trading web site

A Manly real estate agent who cheated an elderly client out of $1 million profit has been banned from operating as a real estate agent for a decade.

Fair Trading Minister Virginia Judge said the NSW Supreme Court found Markus Edward Larcombe, the director of Varinya Pty Ltd, had breached his fiduciary duty.

This is an agent who bought a property from an 85 year old man and then on-sold it for more than double the price. Ms Judge said.

Mr Larcombe exploited the trust of his client, Melville Pedersen, for his own financial gain.

As a result, Mr Larcombe has been disqualified by Fair Trading from holding a licence as a real estate agent and from being involved in the direction, management or conduct of a business of a licensee until 8 July 2019.

His conduct was unlawful and improper and constitutes a serious breach of the Property, Stock and Business Agents Act 2002, which states very clearly that a real estate agent must not obtain a beneficial interest in the properties they are selling.

Mr Pedersen trusted Mr Larcombe to sell his duplex for the best possible price.

He bought the Manly property for himself for $890,200 and on-sold it for $1.935 million a year later.

Its clear Mr Larcombe did not act in the best interests of Mr Pedersen.

Ms Judge said Fair Trading was determined to clean up the real estate industry and get rid of cowboys like Mr Larcombe.

The majority of real estate agents are doing the right thing, but there are a number of agents who keep flouting the laws, Ms Judge said.

Mr Larcombes 10-year ban should serve as a strong warning to other real estate agents who are thinking of cheating their clients.

My message to rogue agents is: Fair Trading is on the ground investigating and when we catch you we will come down hard.

Ms Judge congratulated Mr Pedersens son Brad for bringing the issue to public attention after he identified a pattern of misconduct by Mr Larcombe.

Brad Pedersen said he welcomed the decision by Fair Trading to ban the dodgy agent.

Fair Trading has done the right thing in disqualifying Mr Larcombe for 10 years.

Answers for this activity:

HYPERLINK "https://legislation.nsw.gov.au/view/html/inforce/current/act-2002-066" Property and Stock Agents Act 2002 No 66 - NSW Legislation

Property, Stock and Business Agents Regulation 2014 (nsw.gov.au)The Facts about Foreign Buyers in Australia - Rules to Follow (realestate.com.au)Crimes Act 1900 No 40 - NSW LegislationCOMPETITION AND CONSUMER ACT 2010 - SCHEDULE 2 - TABLE OF CONTENTS (austlii.edu.au)Competition and Consumer Act 2010 (legislation.gov.au)Competition and Consumer Regulations 2010 (legislation.gov.au)Fair Trading Act 1987 No 68 - NSW LegislationFair Trading Regulation 2012 (nsw.gov.au)Australian Competition and Consumer Commission (accc.gov.au)Real estate | ACCCREIA - Competition & Consumer Act 2010Property, Stock and Business Agents Regulation 2014 (nsw.gov.au)How to Become a Real Estate Agent in NSW - REINSWBuying and selling real estate - YouTubeEthics of Real Estate - REINSWGazumping | NSW Fair TradingAnthony Brancatella jailed for three years: Real estate agent convicted for trust fraud | news.com.au Australias leading news siteFormer Scone real estate agent faces two years imprisonment over trust account fraud | The Scone Advocate | Scone, NSWFindlaw Decommission Notice | Australia | Thomson ReutersProperty and Stock Agents Act 2002 No 66 - NSW LegislationCOMPETITION AND CONSUMER ACT 2010 - SCHEDULE 2 The Australian Consumer Law (austlii.edu.au)Property and Stock Agents Act 2002 No 66 - NSW LegislationDisciplinary action | NSW Fair TradingProperty and Stock Agents Act 2002 No 66 - NSW LegislationCrimes (Sentencing Procedure) Act 1999 No 92 - NSW LegislationUnderquoting: Real estate agency Fletcher and Parker Balwyn fined record $880,000 in Federal Court case (domain.com.au)Real estate | ACCCReferences used:

Australian Competition & Consumer Commission. (2020). Real Estate. Retrieved March 2020, from ACCC: https://www.accc.gov.au/consumers/health-home-transport/real-estate

Australian Government. (2020, February). Real Estate Industry Award 2020. Retrieved March 2020, from FairWork Ombusman: http://awardviewer.fwo.gov.au/award/show/MA000106

Dickinson, C. (2017, March/April). Real Estate Journal. Retrieved March 2020, from REINSW: https://www.reinsw.com.au/Web/Members/Real_Estate_Journals/201703/It_all_starts_with_ETHICS.aspx

Mair, S. (2019, April). NSW Residential Property Contracts-Preparing a Sale Contract. Retrieved March 2020, from Pure Conveyancing: https://www.youtube.com/watch?v=kUdeym3-vyAMair, S. (2019, April). The Cooling Off Period for NSW Property Contracts. Retrieved March 2020, from Pure Conveyancing: https://www.youtube.com/watch?v=7gmHpCFiOd0NSW Government. (2020, March). Fair Trading Search. Retrieved from NSW Fair Trading: https://www.fairtrading.nsw.gov.au/NSW Government. (2020, March 24). Property and Stock Agents Act 2002 No 66. Retrieved April 2020, from Legislation NSW: https://www.legislation.nsw.gov.au/#/view/act/2002/66/wholeNSW Government. (2020, March 24). Property and Stock Agents Regulation 2014. Retrieved April 2020, from Legislation NSW: https://www.legislation.nsw.gov.au/#/view/regulation/2014/563/fullPrice, M. (2012, April). Conveyancing Facts-Exchanging Contracts in Residential Property NSW Australia. Retrieved 2020, from Property House Trader: https://www.youtube.com/watch?v=ZuEpQMI0HtMNSW Government. (2020, March). Fair Trading Search. Retrieved from NSW Fair Trading: https://www.fairtrading.nsw.gov.au/NSW Government. (2020, March 24). Property and Stock Agents Act 2002 No 66. Retrieved April 2020, from Legislation NSW: https://www.legislation.nsw.gov.au/#/view/act/2002/66/wholeNSW Government. (2020, March 24). Property and Stock Agents Regulation 2014. Retrieved April 2020, from Legislation NSW: https://www.legislation.nsw.gov.au/#/view/regulation/2014/563/fullAustralian Competition & Consumer Commission. (2020). Real Estate. Retrieved March 2020, from ACCC: https://www.accc.gov.au/consumers/health-home-transport/real-estate

Australian Government. (2020, February). Real Estate Industry Award 2020. Retrieved March 2020, from FairWork Ombusman: http://awardviewer.fwo.gov.au/award/show/MA000106

Dickinson, C. (2017, March/April). Real Estate Journal. Retrieved March 2020, from REINSW: https://www.reinsw.com.au/Web/Members/Real_Estate_Journals/201703/It_all_starts_with_ETHICS.aspx

Lowe, A. (2017, December 14). Underquoting: Real estate agency Fletcher and Parker Balwyn fined record $880,000 in Federal Court case. Retrieved March 2020, from Domain: https://www.domain.com.au/news/underquoting-real-estate-agency-fletcher-and-parker-balwyn-fined-record-880000-in-federal-court-case-20171213-h04ax1/NSW Government. (2020, March). Fair Trading Search. Retrieved from NSW Fair Trading: https://www.fairtrading.nsw.gov.au/NSW Government. (2020, March 24). Property and Stock Agents Act 2002 No 66. Retrieved April 2020, from Legislation NSW: https://www.legislation.nsw.gov.au/#/view/act/2002/66/wholeNSW Government. (2020, March 24). Property and Stock Agents Regulation 2014. Retrieved April 2020, from Legislation NSW: https://www.legislation.nsw.gov.au/#/view/regulation/2014/563/fullNSW Government Fair Trading. (2013, April). Fraud prevention guidelines. Retrieved March 2020, from NSW Fair Trading: https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/running-a-property-agency/fraud-prevention-guidelinesThomson Reuters (Professional) Australia. (2004, October 14). Gonzales Murder House Leads to New Disclosure Laws. Retrieved March 2020, from FindLaw Australia: https://www.findlaw.com.au/news/4497/gonzales-murder-house-leads-to-new-disclosure-laws.aspx

Privacy Policy

About this policy

This privacy policy outlines how we manage your personal information. It also describes generally the sorts of personal information held and for what purposes, and how that information is collected, held, used and disclosed.

At Azure Beach Realty Group (ABRG), we are committed to ensuring the confidentiality and security of your personal information. We are bound by the Privacy Act and the National Privacy Principles (NPPs) regulated by the Federal Privacy Commissioner to guide us in our responsible handling of personal information.

Collecting your personal information

There are a number of reasons why ABRG may collect your personal information. If you are acquiring or have acquired real estate or related services from us, we will collect and hold your personal information for the purposes of:

providing you with the relevant service (including identifying you)

managing and administering the service

protecting against fraud.

We may collect your personal information for the purpose of sending you information about our services that might better serve your real estate and property needs or promotions or other opportunities in which you may be interested.

The information collected may include your name, postal or email address, date of birth, financial details, tax file number, property information or other information ABRG considers necessary to provide you with the service and comply with relevant legislation.

Without your consent we will not collect information about you that reveals your racial or ethnic origin, political opinions, religious or philosophical beliefs or affiliations, membership of a professional or trade association, membership of a trade union, details of health, disability, sexual orientation, or criminal record. This is subject to some exceptions including:

the collection is required by law

when the information is necessary for the establishment, exercise or defence of a legal claim.

Using your personal information

The primary reason we collect, use or disclose your personal information is to provide you with real estate and property services. ABRG maintains the confidentiality and security of your personal information by restricting access to those staff and service providers required to provide sales, property management and administration services.

Disclosing your personal information

It may be necessary for us to disclose your personal information to certain third parties in order to assist ABRG in managing and administering our service to you. Where your personal information is disclosed, we will seek to ensure that the information is held, used or disclosed consistently with the National Privacy Principles and other applicable privacy laws and codes.

Keeping your personal information accurate and up-to-date

ABRG aims to make sure that the personal information we collect, use or disclose is accurate, complete and up-to-date. We will take reasonable steps to make sure this is the case. This way we can provide you with better service.

If you believe your personal information is not accurate, complete or up-to-date, please contact us.

Protecting your personal information

ABRG stores information in different ways, including in paper and electronic form. The security of your personal information is important to us and we take reasonable steps to protect it from misuse and loss and unauthorised access, modification or disclosure. Some of the ways we do this are:

confidentiality requirements for our employees

document storage security policies

security measures for systems access

providing a discreet environment for confidential discussions

only allowing access to personal information where the individual seeking access has satisfied our identification requirements

access control for our buildings.

Keeping your personal information

ABRG keeps your personal information as long as the information is required to manage the service provided to you or to deal with your enquiry. It is generally kept for a further period of at least seven years.

Using government identifiers

Although in certain circumstances we are required to collect government identifiers such as your tax file number, we do not use or disclose this information other than when required or authorised by law.Resolving your privacy issues

If you have any issues you wish to raise with ABRG or if you would like to discuss any issues about our privacy policy, then you are able to do so a number of ways:

You are always welcome to speak directly to our staff and they will do their best to resolve your issue. If investigation is required, we will keep you advised of progress. If staff are unable to resolve the matter, it will be escalated as appropriate to facilitate resolution.

You can call our freecall Feedback Line on 1800 837 837 any time between 8am and 8pm Monday to Friday EST.

You can email your issue to feedback@abrg.com.au.

Code of ethics

At Azure Beach Realty Group, we abide by the Real Estate Institute New South Wales Code of Ethics and Rules of Practice.

In particular the employee must:

protect our firm, our clients and our customers against misrepresentation and fraud or unethical practice in connection with real estate transactions

not undertake any form of deception or any misleading conduct in relation to their employment or be involved with exaggeration or concealment of any facts

disclose any interest that they have on a property that is offered for sale, rental or lease by our firm

have the licensee-in-charge approve any interest the employee may have

not knowingly breach any clause or section of the Property and Stock Agents Act 2002 (NSW) or Property, Stock and Business Agents Regulation 2014 (NSW) or the Property, Stock and Business Agents Amendment Regulation 2019

If at any time an employee wishes to obtain guidance or assistance in relation to the:

Code of ethics

Code of practice

Property and Stock Agents Act 2002 (NSW) and Property, Stock and Business Agents Amendment (Property Industry Reform) Act 2018

Property, Stock and Business Agents Regulation 2014 (NSW) and Property, Stock and Business Agents Amendment Regulation 2019

they must first see their manager and these documents will be made available to them for further explanation.

Skills Assessment

Criteria

Unit code, name and release number

Cluster name: Cl_LegalRequirements CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)

CPPREP4003 Access and interpret legislation in real estate

Qualification/Course code, name and release number

CPP41419 - Certificate IV in Real Estate Practice (Release 1)

CPP31519 Certificate III in Real Estate Practice (Release 1)

Statement of Attainment in Real Estate Practice (Assistant agent)

Student details

Student number

Student name

Assessment Declaration

This declaration only needs to be completed if you are not submitting your assessment online.

This assessment is my original work and no part of it has been copied from any other source except where due acknowledgement is made.

No part of this assessment has been written for me by any other person except where such collaboration has been authorised by the assessor concerned.

I understand that plagiarism is the presentation of the work, idea or creation of another person as though it is your own. Plagiarism occurs when the origin of the material used is not appropriately cited. No part of this assessment is plagiarised.

Student signature and Date

Version:20200909

Date created:20 October 2020

For queries, please contact:

Technology and Business Services SkillsPointUltimo

2020 TAFE NSW, SydneyRTO Provider Number 90003 | CRICOS Provider Code: 00591E

This assessment can be found in the Learning BankThe contents in this document is copyright TAFE NSW 2020, and should not be reproduced without the permission of the TAFE NSW. Information contained in this document is correct at time of printing: DATE @ "d MMMM yyyy" * MERGEFORMAT 7 December 2020. For current information please refer to our website or your teacher as appropriate.

Assessment instructions

Table SEQ Table * ARABIC 1 Assessment instructions

Assessment details Instructions

Assessment overview The objective of this assessment is to assess your skills to communicate ethically with customers and clients.

Assessment Event number 3 of 3

Instructions for this assessment This is a skill-based assessment and will be assessing you on your ability to demonstrate the skills required in the unit.

This assessment is in two parts:

Communicate with a customer and client Meeting.

Ethical practice

This assessment is supported by the following:

Assessment Feedback.

Submission instructions On completion of this assessment, you are required to upload it to the Learning Management System or hand it to your assessor for marking.

Ensure you have written your name at the bottom of each page of your assessment.

You must keep a copy of all electronic and hardcopy assessments submitted to TAFE and complete the assessment declaration when submitting the assessment.

What do I need to do to achieve a satisfactory result? To successfully complete this assessment the student will be available at the arranged time to complete all the assessment criteria as outlined in the assessment instructions.

All parts of the observable task must be performed to a satisfactory level as indicated in the criteria section of the Observation Checklist.

All oral questions must be answered correctly to be deemed satisfactory in this assessment task; however, Assessors may ask questions to clarify understanding.

What do I need to provide? Access to a computer with internet and storage device

What will the assessor provide? Access to Azure Beach Realty Intranet.

Complaint handling policy and procedure

Complaint record

Property and Stock Agents Regulations 2014 (NSW)Due date and time allowed Indicative time to complete assessment: One hour.

For due date, refer to Unit Assessment Guide for face to face delivery, or Delivery timetable for online delivery.

Supervision This is an unsupervised, take-home assessment task.

Part 1 Role-play assessment to be completed with colleagues, recorded and submitted to your assessor for marking. Students in the classroom should discuss this with their assessor, as it can be completed in class.

Your assessor may ask for additional evidence to verify the authenticity of your submission and confirm that the assessment task was completed by you.

Assessment feedback, review or appeals Appeals are addressed in accordance with Every Students Guide to Assessment.

Specific task instructions

Scenario

The receptionist at Azure Beach Realty Group and has just spoken Jack Hastings, the landlord for 10 Mary Street, Newcastle, in regards to replacing the stove in his rental property.

The landlord informed the receptionist that he was going to use a mate (retired electrician John Hastings) to install the new stove at his property. He has also mentioned that John would like to go on the agency Tradesperson list and asked if the Property Manager can please set up a meeting tomorrow, to discuss these matters with him and John.

The receptionist informed the property manager (you) and has booked a meeting with the landlord and Jack for tomorrow as requested.

Note:

By law, any electrical installation work in NSW must be carried out by a licenced electrician.

Contractors used by the agency must be able to supply the following documents:

Copy of the relevant licence

Copy of insurance documents

Safe work Methods Policy

ABN number

Task 1: Communicate with a customer and client

Using your communication strategies and ethical practice, participate in a meeting to

Identify whether the the friend (John Harrington) has the required qualifications (licence, public liability Insurance, WH&S documentation) to complete the installation of the stove and become a listed tradesperson for your agency.

Explain to Mr Hastings and John why you are unable to use John as an agency tradesperson or to install the stove. Refer to the legal requirement set out by NSW Fair Trading.

Meeting participants:

CustomerJohn Harrington, may be played by a friend or colleague

Jack Hastings the landlord, may be played by a friend or colleague

Property Manager You

Meeting information

John Harrington is a retired electrician that still holds his licence but no longer holds an ABN or the required insurances.

Landlord

Ask property manager to turn a blind eye and let friend do the job.

Will agree to wait till John organises the relevant insurances before he installs the stove. Landlord understands agencies position and thanks the property manager for protecting his interests.

Observation Checklist for Meeting

The Observation Checklist will be used by you to mark the students performance in the meeting. Use this Checklist to understand what skills the student is required to demonstrate in this section of the assessment. All the criteria must be met. The students demonstration will be used as part of the overall evidence requirements of the unit.

Table SEQ Table * ARABIC 3 Observation Checklist

OC # Task/Activity Performed S U/S Assessor Comments

1.1 Demonstrates ethical practices and follows the requirements under the rules of conduct 1.2 Follows their communication strategies 1.3 Responds appropriately to questions and comments

Task 2: Ethical requirements

It was identified that John Harrington does not hold a current licence and no longer maintains his insurances and WH&S requirements. The landlord has asked the property manager to turn a blind eye and let his friend do the job or he will take the management elsewhere.

Explain the ethical requirements the property manager would have breached by agreeing to the landlord's request.

Explain two consequence that could occur from breaching the rules of conduct, including the maximum penalty points and monetary value.

Using the Azure Beach Email template, write an email to the John Harrigton explaining why you could not use him as a Tradesperson for the agency, including what he would be required to do if he wished to be employed in the future.

Assessment Feedback

This section is to be completed by the assessor. Once feedback has been provided by the assessor you will be given the opportunity to respond.

Assessment outcome

Satisfactory

Unsatisfactory

Assessor Feedback

Has the Assessment Declaration been signed and dated by the student?

Are you assured that the evidence presented for assessment is the students own work?

Was the assessment event successfully completed?

If no, was the resubmission/re-assessment successfully completed?

Was reasonable adjustment in place for this assessment event?If yes, ensure it is detailed on the assessment document.

Comments:

Assessor name, signature and date:

Student acknowledgement of assessment outcome

Would you like to make any comments about this assessment?

Student name, signature and date

NOTE: Make sure you have written your name at the bottom of each page of your submission before attaching the cover sheet and submitting to your assessor for marking.

Project Assessment

Criteria

Unit code, name and release number

Cluster name: Cl_LegalRequirementsCPPREP4002 - Access and interpret ethical practice in real estate (Release 1)

CPPREP4003 - Access and interpret legislation in real estate (Release 1)

Qualification/Course code, name and release number

CPP41419 - Certificate IV in Real Estate Practice (Release 1)

CPP31519 Certificate III in Real Estate Practice (Release 1)

Statement of Attainment in Real Estate Practice (Assistant agent)

Student details

Student number

Student name

Assessment Declaration

This declaration only needs to be completed if you are not submitting your assessment online.

This assessment is my original work and no part of it has been copied from any other source except where due acknowledgement is made.

No part of this assessment has been written for me by any other person except where such collaboration has been authorised by the assessor concerned.

I understand that plagiarism is the presentation of the work, idea or creation of another person as though it is your own. Plagiarism occurs when the origin of the material used is not appropriately cited. No part of this assessment is plagiarised.

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Version:20200909

Date created:25 June 2019

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2020 TAFE NSW, SydneyRTO Provider Number 90003 | CRICOS Provider Code: 00591E

This assessment can be found in the Learning BankThe contents in this document is copyright TAFE NSW 2020, and should not be reproduced without the permission of the TAFE NSW. Information contained in this document is correct at time of printing: DATE @ "d MMMM yyyy" * MERGEFORMAT 7 December 2020. For current information please refer to our website or your teacher as appropriate.

Assessment instructions

Table SEQ Table * ARABIC 1 Assessment instructions

Assessment details Instructions

Assessment overview The objective of this assessment is to assess your knowledge and performance required to investigate and report on ethical practices.

Assessment Event number 2 of 3

Instructions for this assessment This is a project-based assessment and will be assessing you on your knowledge and performance of the unit.

This assessment is in two parts and includes and assessment feedback:

Part 1: Ethical practice in real estate

Part 2: Real Estate Prosecution

Submission instructions On completion of this assessment, you are required to upload it to the Learning platform (Learning Management System) or hand it to your assessor for marking.

Ensure you have written your name at the bottom of each page of your assessment.

It is important that you keep a copy of all electronic and hardcopy assessments submitted to TAFE and complete the assessment declaration when submitting the assessment.

What do I need to do to achieve a satisfactory result? To achieve a satisfactory result for this assessment all questions must be answered correctly.

What do I need to provide? Access to a computer with internet and storage device

What will the assessor provide? Access to the learning platform as required (Learning Management System).

Links to the following:

Hinton & Ors v Commissioner for Fair Trading [2006] NSWADT 257Legislation NSWNSW Fair TradingCompetition and Consumer Act 2010Property and Stock Agents Regulation 2014

Due date and time allowed Indicative time to complete assessment: Four hours.

For the due date refer to the Unit Assessment guide if face to face delivery, or the delivery timetable if online delivery.

Supervision This is an unsupervised, take-home assessment. Your assessor may ask for additional evidence to verify the authenticity of your submission and confirm that the assessment task was completed by you.

Assessment feedback, review or appeals Appeals are addressed in accordance with Every Students Guide to Assessment.

Specific task instructions

Scenario

Youre working for Azure Beach Realty Group (ABRG) as a Sales Representative. ABRG is a small to medium-sized agency operating in Azure Beach NSW and surrounding areas. Its operations include residential property management and sales. ABRG also has a small portfolio of commercial and industrial properties. Real estate operations are conducted under the one roof where the property managers and sales staff can interact.

The ABRG Licensee, Sarah Hampden, has discussed a case with the team where a real estate agency was in breach of several provisions of an act (Hinton & Ors v Commissioner for Fair Trading [2006] NSWADT 257]. Sarah wants to ensure that all staff members are acting ethically in their real estate activities so that a similar situation wont happen at ABRG. Shes asked you to complete the following report.

Part 1: Ethical practice in real estate

The real estate industry has strict guidelines, regulations and legislation that clearly set out the professional and ethical standards required of real estate personnel.

a. Ethical Requirements for agents working in NSW, are legislated by: (complete the sentence below)

of the

b. Identify five behaviours that would be considered unethical in Real Estate Practice.

Using the legislation you identified in question 1, select the correct rule/rules for each of the statements/areas below. Provide an example situation and explain how it applies to ethical practice.

Statement/Area Rule/s

No or Act Example and explanation

Example:

complying with fiduciary duty and obligations

2 Complying with this rule demonstrates ethical practice by the agent if they act honourably, with respect and due diligence in all dealings with their clients. By maintaining privacy and confidentiality in regards to not disclosing personal details about the client and by faithfully and accurately accounting to the client in relation to all trust monies held.

Example: accurately complete agency agreement and follow the instructions in the agreement and account to the client as directed in the agreement. Maintaining the clients records securely and not disclosing their personal circumstances to third parties.

maintaining knowledge of relevant legislation and truly demonstrating this knowledge in real estate activities and transactions

maintaining and developing industry qualifications, licences, competency and currency acting with honesty, fairness and professionalism

exercising skill, care and diligence

acting in the best interest of clients

following principals instructions unless unlawful

maintaining confidentiality and security of information

obtaining and acting according to client authority and instructions

maintaining independence and disclosing and managing potential conflicts of interest

disclosing real and potential conflicts of interest, including disclosing material particulars or material facts, beneficial interests, commission, rebates

making sure advertising and communications are not false or misleading

using clear communication in all dealings with all parties to the real estate transaction, including providing written documents and signed documents

Client protection and focus Acting Respectfully

Explain why you must apply ethical conduct requirements in your personal decision making. (60-100 words)

Explain three consequence an agent may face by not applying ethical requirements in their decision making. (3 dot points)

Identify the federal agency and legislation that covers ethical conduct by agents. Analyse the legislation and select three sections that apply to the ethical conduct of agents. (4 dot points)

Examine and interpret the sections of consumer law provided and explain the risks and impact of a breach or fraudulent activity would have on the following areas:

Consumer Law Risks and impact to consumer Risk to agency Risk to industry Personal risk

Property and Stock Agents Regulations 2014 (NSW)

Schedule 1.2

Specifically the obligation to act with integrity in regard to the principals money Schedule 9 Property and Stock Agents Act 2002 (NSW)

Section 52 Competition and Consumer Act 2010 (CTH)

Section 29 Explain how the following documents can assist in the risk management of unethical practices.

Forms Explanation

Office policies and procedures WH&S Manual Incident reports Examine the Tenancy Privacy requirements on the Office of the Australian Information Commissioner (OAIC) website and describe the ethical standards an agent must apply when dealing with matters of privacy and confidentiality. (60-100 words)

Explain the ethical requirements for the secure storage of client information in an agency. (60-80 words)

10. a) Explain the process that would be followed to address inconsistencies between what is required by legislation and what is being done by the agency and/or agent.

Agency Agent b) Explain strategies you could use to respond to both two concerns and two discrepancies between how the agency conducts themselves and the real estate standards for ethical practice and application of legislation.

Concern Response Strategy

Dishonesty. Misleading information (verbal/writing/image/etc). Unsigned agency agreement Discrepancy Response Strategy

In breach of licence conditions, agent has not completed required CPD training

(50-60 words) Acted in a manner against company standards/policies/procedures/etc.

words) Identify the sources and experts an agent could contact if they needed assistance/advice concerning legal or ethical matters?

External sources Internal sources Technical experts

1 2 Identify and describe two communication strategies the agency could implement to clearly demonstrate their clients consumer rights and responsibilities when dealing with the agency. (40-60 words)

You are required to demonstrate that you can adhere to ethical communication practice, read the following scenarios and select/give the response that an agent should give the client.

During an open for inspection a potential buyer says: This place is pretty old but looks structurally sound. The potential buyer asks the agent what they think. The agents response should be:

I am really not qualified to answer that. I would suggest to people that if they have any concerns about the structure of a building that they seek professional advice from a registered builder or structural engineer.

Oh yes, it's a real beauty and I have a few keen buyers that are just about ready to snap it up. You should put an offer in soon or you might miss out.

You have just listed a new home in an area that had massive bush fires last year, the fire did not burn the property, however the garden shed to the rear of the property was lost in the fire. You are conducting an Open for inspection at the home when a potential buyer approaches you and asks you about the fire.

Ethically respond to the prospective buyers enquiry: (40-60 words)

Azure Beach Realty Group has just employed an new marketing agency ( Marketing Perfection) for their high end properties. They have just returned the advertisements for a newly listed beach front property and you noticed that the power lines and a large tree infront of the property have been digitally removed from the photographs.

Using the Azure Beach email template, write an email to the owner of Markting Perfection, Nora Conrad, and explain why they are not permitted to alter photographs taken at the property. Explain to Nora, the ethical breach you would commit if you were to use current photographs.

Part 2: Real Estate Prosecution

Research and analyse the (Hinton & Ors v Commissioner for Fair Trading [2006] NSWADT 257] case and respond complete the report below..

1. Case report

NOTE 1: Since 23 March 2020 the Property, Stock and Business Agent Act 2002 (NSW) has been superseded by the Property and Stock Agents Act 2002 (NSW), the relevant sections of the case still apply.

Note 2: The Trade Practices Act 1974 (CTH) has been superseded by the Competition and Consumer Act 2010 (CTH),

Note 3: Section 42 of the Fair Trading Act 1987 has been repealed, use relevant section of the Competition and Consumer Act 2010 (CTH), in the response to the question.

Identify the main acts and regulations, including at the relevant sections that the agent breached.

Full title of Acts and Regulation Section Breached

1 2 3 Provide a link to another similar prosecution.

Analyse and in your own words explain the ethical breaches the agent committed that led to his prosecution. (80-100 words)

Provide and explain another rule of conduct could the breach could relate to.

If the agent was a member of the REINSW, would they have breach their code of practice, include the sections they would have breached.

Explain how the unethical practice committed by the agent relates to Federal consumer protection legislation. (100 words)

Identify the legislation which sets out the monetary value of penalty units and the legislation that determines the value of a single unit. Then calculate the highest monetary penalty the agent could receive for breaching section 32 of the Property and Stock Agents Act 2002 and Schedule 1.2 of the Regulations.

1 NSW legislation sets out the monetary value of penalty units 2 Legislation that determines the value of a single penalty unit. 3 the maximum monetary penalty for breach of s32 Using the prosecution provided, explain the process that you or the agency should follow if a breach of ethics was identified. List two ways this may be recorded in the agency? (120-160 words)

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