Ethical Practice in Real Estate

Project 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 (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
Document title: Page 1 of 21
Resource ID: TBS_19_001_[Title] STUDENT NAME:

Document title: Page 2 of 21
Resource ID: TBS_19_001_[Title] STUDENT NAME:

Assessment instructions
Table 1Assessment instructions
Assessment details Instructions
Assessment overview The objective of this assessment is to assess your knowledge and
performancerequired 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).
Document title: Page 3 of 21
Resource ID: TBS_19_001_[Title] STUDENT NAME:

Assessment details Instructions
Links to the following:
Hinton &Ors v Commissioner for Fair Trading [2006] NSWADT
257
Legislation NSW
NSW Fair Trading
Competition and Consumer Act 2010
Property 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 Student’s Guide
to Assessment.
Document title: Page 4 of 21
Resource ID: TBS_19_001_[Title] STUDENT NAME:

Specific task instructions
Scenario
You’re 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 ABRGLicensee, 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 won’t happen at ABRG. She’s
asked you to complete the following report.
Document title: Page 5 of 21
Resource ID: TBS_19_001_[Title] STUDENT NAME:

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.
1. a. Ethical Requirements for agents working in NSW, are legislated by: (complete the
sentence below)
have knowledge of the Act and Regulation.
comply with the Act and Regulation.
conduct their business with honesty, fairness and professionalism.
exercise reasonable skill, care and diligence in their dealings.
Maintaining and developing industry qualifications, licences, competency and
currency
Maintaining knowledge of legislation
Complying with fiduciary duty and obligations
Acting with honesty, fairness and professionalism
Exercising skill, care and diligence
Not engaging in high pressure tactics, harassment or unconscionable conduct
Acting in the best interest of clients, including client protection
Practising client focus, courtesy and respect
b. Identify five behaviours that would be considered unethical in Real Estate Practice.
White anting:This is where an agent knowingly tries to influence a customer who has been
to another agent by telling them something that may stop the customer from dealing with
the other agent. For instance, saying something unhelpful such as ‘it’s been on the market a
long time, it must be really overpriced’. It’s also unethical for you to disparage the other
agent.
Buying a listing: This is where an agent inflates the appraisal price so that the vendor will list
with them. This is considered unethical and is reasonably widespread in the industry. It can
also be considered contrary to the legislation requirements.
Underquoting: This is covered in legislation as well by ethics. This practice entices more
customers to your listings by underestimating the price, usually at auctions. The effect that
Document title: Page 6 of 21
Resource ID: TBS_19_001_[Title] STUDENT NAME: