Legislative requirements and ethical standards Assignment

Question 1

Read the following case studies then examine and apply legislative requirements and ethical standards relevant to this scenario in relation to the sale of property.

Case Study 1

Alfred Simons is a real estate agent with OMG Real Estate Services. He has recently been marketing one of the properties that he has listed for sale.

Alfred’s exclusive agency agreement is due to expire in 1 week and as a result he feels pressured to get the property sold as his vendor has told him that he will take the property off the market if it does not sell.

At the open home on the weekend, Alfred had 2 buyers attend the open house. To create urgency, he has told both groups of buyers there are other buyers which are very interested in the home and he has other offers pending on the property.

Question 2

1. What are the requirements in your state/territory regarding the preparation of contracts and supporting documents?
2. Under which section(s) of the legislation is this information specified?
3. List at least (2) documents that must be made available for potential buyers.

Question 3 

List the agency and statutory documents that are required by legislation in your state or territory to be completed during the sales process.

Question 4 

1. What is a Certificate of Title?
2. What information does a Certificate of Title include?

Question 5

View the following pictures of property inspections that are due to take place with potential purchasers.  Identify three potential risks that can affect a vendor, prospective buyers or agent associated with property inspection and propose control measures for each risk identified.  (Some risks may affect more than one stakeholder.)

Question 6

6.1 What is the purpose of property inspections being undertaken when selling property?

6.2 What impact does property presentation have on property inspections being undertaken?

6.3Explain the process that you would undertake to schedule a property inspection for a purchaser and vendor in line with their availability.

Question 7

Make a list of factors would you take into consideration when matching buyers to suitable properties?

Question 8

Read the following buyer feedback and for each write recommendations you would make to the vendor.

1. The house is a good size but requires more work that we expected.

2. The house is suitable, but we have small children and the lack of pool fence is a real worry to us.

3. The location and the land size is perfect, but the property lacks grass for our dogs.

Question 9

1. What is a material fact?

2. What is the name of the legislation that covers this topic in your state/territory?

3. Provide at least 2 examples of material facts as outlined in the legislation in your state/territory.

4. How can an agent minimize the risks associated with material facts?

Question 10

Read the following scenarios and identify the most appropriate method of sale for each scenario and give reasons for your answer.

Scenario 1

The vendors need to move interstate due to a job transfer that is due to commence in 2 months.  They want to obtain the best price they can, but need to get the property sold before they move so they can purchase another property.  The market is very buoyant and prices are hard to predict.

   a) Method of Sale

   b) Reason 

Scenario 2

Sally would like to seller her 4-bedroom house.  She is not in a hurry to sell and she has a very specific price in mind that she would like to achieve for her property and is not interested in selling for less.  She is happy to wait as long as it takes to achieve her desired asking price.

   a) Method of Sale

   b) Reason

Question 11

1. Imagine you are negotiating an offer with a buyer on a property for sale by private treaty.  Explain the terms and conditions you would explain and/or discuss, according to agency practice and legislative requirements.
2. Provide (2) types of specialist advice you might seek as part of this process and explain the reason for the specialist advice.

Question 12

Create a contingency plan for each of the matters below that may affect the completion of a sale.

1. The buyer is having trouble obtaining finance.
2. Termites have been discovered during the building and pest inspection.
3. The property is due to settle in 2 days but the seller is unable to settle on time due to cross securities with another property and the buyer has already arranged removalists.
4. The buyer is unable to settle as their property was severely damaged in a hailstorm and they did not have insurance to pay for the repairs and their buyers are unwilling to proceed with the sale.

Question 13

An agent has sold a property for $ 545,000.00 and the agent charges a commission of 3.3% including 10% GST.

Answer the questions below;

1. How much would the total commission amount be? Click or tap here to enter text. 
2. How much is the GST amount? Click or tap here to enter text. 
3. How much is the non-GST portion of the amount?  Click or tap here to enter text.

Question 14

Look at the pictures of the properties below and for each one provide recommendations to the vendor about property presentation to maximise buyer interest.

a)

b)