CPP40307-Assessment Tasks for Certificate IV in Property Services (Real Estate) Agent’s Representative

ASSESSMENT TASKS
CPP40307
C ER T I F IC A T E IV IN P R O P ER T Y S ER V IC E S
(R EA L E ST A T E )
A G E N T ’ S R E P R E S E N T A T I V E
C P P D S M 4 0 0 7 A I d e n t i f y l e g a l a n d e t h i c a l r e q u i r e m e n t s o f p r o p e r t y
m a n a g e m e n t t o c o m p l e t e a g e n c y w o r k
C P P D S M 4 0 0 8 A I d e n t i f y l e g a l a n d e t h i c a l r e q u i r e m e n t s o f p r o p e r t y
s a l e s t o c o m p l e t e a g e n c y w o r k
C P P D S 4 0 8 0 A W o r k i n t h e r e a l e s t a t e i n d u s t r y
ASSESSMENT QUESTIONS

Assessment Task 1: Short answer questions
Question 1
Describe the agency-principal relationship. What are the agent’s responsibilities in this relationship?
The agent – principal relationship is an arrangement where there is a legal relationship between
the two parties to act on behalf of the other in the cases pertaining to law. (Khatri, 2015). This
relationship between the principal and the agent is called agency. The principal assigns the agent
to carry out a task on his behalf and the agent performs this task in return for some professional
fees. The agent’s responsibilities in this relationship are:
1. Responsibility to follow instructions.
2. Responsibility of reasonable care.
3. Responsibility to avoid conflict of interest.
4. Responsibility of remitting sums honestly.
5. To not make unjust profit.
6. To remit sums with honesty.

ASSESSMENT TASK 1
Question 2
Define the following roles.
a) Real estate agent
b) Agent’s representative
c) Officer in effective control
Question 3
a) Which legislation describes the key licensing and eligibility requirements for agency staff in your state or territory?
b) List the eligibility requirements for estate agents license and agent representative’s license in your state or territory.
A person who is appointed by or acts on behalf of a real estate agent, and has full legal authority
to perform the duties assigned to the real estate agent.
An agent’s representative is employed by or acts on behalf of a real estate agent, and has full
legal authority to perform the activities assigned to the real estate agent.
An OIEC is the principal agent who takes the control of the real estate agency business of a
corporation. The OIEC and the principal agent are incharge of the regular operations of the
office.
The Estate Agents Act 1980 describes the key licensing and eligibility requirements for agency
staff in Victoria, Australia. The obligations are set out in the Estate Agents (Professional
Conduct) Regulations 2008.
The eligibility requirements for estate agents license and agent representative’s license in
Victoria are:
• Age should be minimum 18 years.
• Have a registered address in Victoria.
• Have passed (in the last 5 years) the course in Real Estate Agents’ or an
Agents’ Representative course
• A special permission if during the last 10 years you have been found guilty or convicted of
cheating, fraud, manipulation, drug trafficking or have been imprisoned.

ASSESSMENT TASK 1
c) Identify and list the legislation relating to the following:
§ anti-discrimination and equal employment opportunity
§ consumer protection and trade practices
§ environmental issues
§ OHS
§ privacy
§ property management.
d) List the legislative and industry requirements in your state or territory that regulate the ethical and standard of conduct
real estate agents and real estate representatives.
The legislation related to the above in Victoria, Australia are:
• Anti-discrimination and equal employment opportunity: Equal Opportunity Act 2010.
• Consumer protection and trade practices: There are two - Fair Trading Act 1999 and
Trade Practices Act 1974 (cth).
• Environmental Issues: The Environmental Protection Act 1970, followed by the
Environmental Protection Act 2017. The act of 2017 will be amended by The
Environmental Protection Amendment Bill 2018.
• OHS: The Occupational Health and Safety Act 2004 supported by the Occupational Health
and Safety Regulations 2017.
• Privacy: The Privacy and Data Protection Act 2014.
• Property Management: There are several laws – The Estate Agents Act 1980, Sale of Land
Act 1962 and The Residential Tenancies Act 1997.
• A special permission if you are insolvent under the administration.
• A special permission if in the last 10 years you have been convicted or found guilty of
fraud, cheating, manipulation, drug trafficking, or have been imprisoned.
The legislative requirements in Victoria that regulate the ethical and standard of conduct of
real estate agents and real estate representatives:
• Sale of Land Act 1962
• The Estate Agents Act 1980.
• Residential Tenancies Act 1997.
• Retail Leases Act 2003.
• Australian Consumer Law and Fair Trading Act 2012.

ASSESSMENT TASK 1
e) Explain the intention of the following legislation:
§ Privacy Act 1988 (Cth)
§ Equal Opportunity Act 1995
§ Australian Consumer Law and Fair Trading Act 2012
• The Privacy Act 1988 operates with the intention of handling the private information
about individuals. This includes information about a person who is reasonably
identifiable or identified individual.
• The intention of the Equal Opportunity Act 1995 is to make it an illegal activity to
either sexually harass someone or treat someone unfairly because of their age
career, status, age, physical features, pregnancy, race, personal associations, etc.
• The intention of the Australian Consumer Law and Fair Trading Act 2012 is to encourage
and promote good trading practices and a fair and competitive market. It also aims at
protection of consumers and regulation of trade practices.
The industry requirements in Victoria that regulate ethics and standards of conduct are:
• To know the relevant laws
• To exercise skill, care and diligence in performing their duties.
• Following the lawful instructions of the client’s with the exception if it is not a good estate
agency practice.
• To make all reasonable enquiries to ascertain information relevant to a transaction.
• If a deposit is not received for the sale as per the contract, then immediately inform the seller.
• To immediately inform a seller if, contrary to the contract, a deposit is not received for
the sale.

ASSESSMENT TASK 1
f) List the legislation that covers property sales in your state or territory.
Commonwealth Your state or territory
g) Discuss the professional conduct standards that agents are bound by in relation to property sales.
1. Financial Services Reform Act
2. Census and Statistics act 1905
3. Copyright Act 1968
4. Corporations Act 20011
5. Family Law Act 1975
6. Freedom of Information Act 1982
7. Fringe Benefits Tax Act 1986
8. Fringe Benefits Tax Assessment Act 1968
9. Managed Investments Act 198
10. Native Title Act 1993
11. Privacy Act 1988
12. Sex Discrimination Act 1984
The legislation which covers property sales in
Victoria, Australia is Estate Agents Act 1980
(VIC). It comprises of
1. Part I – Introduction.
2. Part IIA – The Estate Agents Council
3. Part IIB – Administration
4. Part III – Licenses
5. Part IV - Agents and Agents’ Representatives
6. Part V – Builders and Sub dividers of Land
7. Part VI – Accounts, Audit and Monitoring
of Estate Agency Business
8. Part VII – Victorian Property Fund
9. Part VIII – Miscellaneous
10. Part IX – Transitional and Savings
Some of the professional conduct standards that agents are bound by in relation to property
sales are:
• To know the relevant laws
• To exercise skill, care and diligence in performing their duties.
• To follow their client’s lawful instructions, except if it would not be good estate
agency practice.
• To make all reasonable enquiries to ascertain information relevant to a transaction.
To act fairly, honestly, in good faith and to the best of their knowledge and ability at
all times.
• To immediately inform a seller if, contrary to the contract, a deposit is not received for
the sale.
• Be timely and courteous in all dealings when carrying out their duties.
• Provide advice about the agency’s dispute resolution procedure before or as soon as
possible after a tenancy agreement is signed.
• Minimize the disputes of and with clients.

ASSESSMENT TASK 1
Question 4
What is an ‘Authority to act’?
Question 5
For the following questions, you must refer to the correct section of the relevant Act in your state or territory.
a) What is licence lending?
b) What are the penalties for licence lending?
c) What is a Vendor’s Statement? To which section of the Act in your state or territory does it relate? What information
does it contain?
An ‘Authority to Act’ is a document which enables a client (seller, landlord or other person) to
appoint an agent to act (in this case buy, sell, lease or manage real estate) on their behalf. An
authority may be drafted by the agent or drafted by a legal practitioner.
According to the Act, it is an offence for a real estate agent to allow or help a non – license
holder to use their license to act as or on behalf of the estate agent.
The penalties for license lending are 500 license units according to the Estate Agents Act 1980.
The value of one penalty unit for the financial year 2018 – 2109 is $161.19.
It is a document which gives the prospective buyers some important information about the
property and its title which they should know before signing the contract to purchase the
property. It pertains to Section 32. It contains information mortgages, covenants, easements,
zonings, outgoings, and a declaration that the property is in a fire prone area.

ASSESSMENT TASK 1
d) Explain the following rights and duties of landlords and tenants as defined in the relevant Act in your state or territory.
You must identify the relevant section of the Act where required.
§ Quiet enjoyment
§ What are the tenant’s responsibilities and duties under sections 59- 64 of the Act?
§ Explain the rights of entry to the property. What are the obligations for both the landlord or their agent and the
tenant?
§ When can property inspections be carried out on a leased property? What conditions must be met prior to the
inspection?
Under the Residential Tenancies Act 1997 of Victoria the right of quiet enjoyment means ‘a
reasonable steps should be taken by the landlord so that the tenant has quiet enjoyment of
the rented property. It is covered under section 67.
The tenant’s responsibilities and duties under the given sections:
1. Section 59: Tenant must not use premises for illegal purposes.
2. Section 60: Tenant must not cause nuisance or interference.
3. Section 61: Tenant must avoid damage to premises or common areas.
4. Section 62: Tenant must give notice of damage.
5. Section 63: Tenant must keep rented premises clean.
6. Section 64: Tenant must not install fixtures, etc. without consent.
Right of entry to the property means that the landlords have the right to enter the rented
premises and carry out certain inspections. Obligations of the landlord include:
1. Enter the property between 8 am and 6 pm except on public holidays.
2. Give the tenants 24 hour written notice.
3. The landlord should not misuse their right to entry and exercise their right in
an unreasonable manner.
Right of entry obligation of the tenant includes that the rented premises should be kept in a
reasonably clean condition by the tenant and not establish any illegal fixtures.