Access and Interpret Ethical Practice in Real Estate

This document provides information on accessing and interpreting ethical practice in the real estate industry. It covers relevant legislation, consumer protection requirements, risks, and strategies to manage them. The role of the Australia Competition and Consumer Commission is also discussed. The impact of fraudulent activities on consumers and agencies is explained, along with penalties for breaches of ethical codes and standards. The role of procedures, forms, and documents in managing the risk of unethical practice is also explored.

CPPREP4002 - Access and
Interpret Ethical Practice in
Real Estate (Release 1)

Assessment Questions
Question 1
Complete the following table by inserting the name of at least 2 pieces of legislation relevant
to the areas listed as relevant to your state/territory and identify whether the legislation is at
the state or federal level (in brackets).
AREA NAME OF THE ACTS/REGULATIONS
REAL ESTATE AGENTS
AND LICENSING
Agent Act, 2003 is one of the real estate agents and licensing
act which is applicable is New South Wales and on the other
side, the law which is applicable in Queensland is Property,
Stock and Business Agent Act, 2002. The guidelines for both
the act are different as per the requirement of specified area.
PROPERTY SALES Civil law (Sales of Residential Property) Act, 2003 is
applicable in Queensland whereas Australian Property Law is
the law regulating in Australian Capital Territory.
PROPERTY MANAGEMENT Land Agent Variation Regulations 2018 act and Land Agents
Amendment Act 2017 are the major law which has been
commenced for the purpose of dealing with property
management related matter (Singhal and Bhola, 2017).
PRIVACY Privacy Act, 1988 is the federal legislation for maintaining the
privacy of person or any entity and Information Privacy Act,
2009 is applicable to different part of Queensland.
FAIR TRADING AND
CONSUMER PROTECTION
Competition and Consumer Act, 2010 is one of the national
laws which regulates for fair trading in Australia. While talking
about New South Wales, Consumer law has been effectively
helping to deal with any of the matter related to fair trading and
consumer protection.
DISCRIMINATION Anti-Discrimination Act 1991 governs for discrimination in

Queensland and at Federal Level Australian Human Right
Commission Act, 1986 has been allowing to obtain effective
result.
WORK HEALTH AND
SAFETY/OCCUPATIONAL
HEALTH AND SAFETY
Commonwealth has introduced Work Health and Safety Act,
2011 for the purpose of providing safety to employees and the
other act which are playing supportive role is Occupational
Health and Safety Act, 2017 in New South wales.
ENVIRONMENTAL
(SUSTAINABILITY)
Environment Protection & Biodiversity
Conservation Act 1999 is the national environmental law for
whole Australia an Environmental Protection Act, 1994 has
been enforced within Queensland for obtaining effective result.
EMPLOYMENT AND
INDUSTRIAL RELATIONS
Fair Work Regulations Act, 2009 and Workplace Relations Act,
1996 are the two different laws within the premisses of
Australia which has been allowing to conduct busines activity
in smooth manner by developing heathy relations.
FOREIGN INVESTMENT Foreign Direct Investment Act, 1975 is among the most
important act which is allowing to conduct any of the foreign
investment related activity at federal level. Trade and
Investment Act 2013 is the act which governs Queensland for
any of the foreign investment.
SECRET COMMISSIONS
(ONLY 1 REQUIRED)
Secret Commissions Act, 1905 has been introduced in Australia
where several amendments have been made into the law.
Question 2
What is the role of the Australia Competition and Consumer Commission?
There are different types of laws and regulation which has been commenced by the law
forming bodies where all of them carries certain intention along with roles. In the same
manner, Australian Competition and Consumer Commission has certain roles and
responsibility which they must complete. The first important role is to ensure that fair
trading is being done within the market place as per the requirement of situation. They also
must promote higher competition by ensuring that new entrance of business entity is
possible with limited number of restrictions (Back, 2017). Overall, Australian Competition

and Consumer Commission has the responsibility to provide benefits to consumer has high
percentage without letting to create any of the monopoly.
Question 3
Consider the relevance of consumer protection requirements and identify (2) risks for the
following;
3.1 Consumer (Buyer/tenant/Seller or landlord)
3.2 Risk to the Agency
3.3 Risk to the Industry
3.4 Personal Risk
Consumer Protection requirement is important in current scenario because it allows to
provide proper information about each of the product which are required by the
organisation. It means that it is needed because consumer will not face any of the problem
just because of the market trend and even all of the necessary benefits will be provided to
them whenever there will be any sort of requirement. In addition to this, it will allow the
consumer to make appropriate choice regarding the product and services which they are
going to avail from the market place. But there is always certain risk for the people or
organisation who are included as per the act. Below, some of the risk associated with
different people has been explained in detail:
Consumer: These are the person who purchases the product either for consuming or either
they sell ahead in the market for further benefits. It is necessary to understand that
whenever any of this situation arises problem should not occur for the customers. The risk
which they have to bear is:
 They must be aware about the product or services which they are going to avail at
beginning.
 Services might not be as per the requirement for amount paid by the consumers.
Risk to Agency: There are different types of risk which is associated with agency and they
have been listed below:
 There might be compliances risk if an agency fails to meet out the standards then
problem may arise.
 Operational Risk is also associated. It means that if agency fails to provide the services as

per their offers then problem may arise.
Risk to Industry: Some of the risk which can seen within industry are described below:
 Negative Cash Flow can be one of the great risk for the industry which means that
amount has been spent more but agency is unable to recover it is from their
customers (Deshpande and et. al., 2020).
 Selection of location is very important else it can be also one of those risk which
may create huge problem for the business entity.
Personal Risk: The real estate sector is one of the difficult sectors where each of the
decision should be taken after analysing each of the situation properly. If in case, it has
been not done then problem may arise and those problem are listed below:
 Injury is the major risk which can take place within the real estate sector which is
categorised under personal risk.
 Investment made in real estate but resulted into losses which can be also one of the
bigger personal risk that can be seen in it.
Question 4
What is an ‘Authority to act’?
Authority to act is defined as the process where rights and responsibility are given to some
other person to act on their behalf. Here, proper forms and guidelines needs to be fulfilled
but these types of documents are not similar to the Power of Attorney. Whenever any of
the person who has been authorised to take any of the decision on behalf of other person
then their decision will be valid and must get legal right. These types of situation are
mainly seen within premisses of company where shareholders or directors gives their right
to some other person to act on their behalf. The main thing which must be understood
under this particular process is that only for certain time period powers are given to them
where appointed person is not authorised to work beyond the capacity and if it is found
then he or she will be legally penalised for default. For example: There are the situation
where director needs to go out of the country for certain official or personal work and in
that particular condition, there is a requirement of alternate director who gets the authority
to act on behalf of director. But certain responsibility is given to the one who act on behalf
of the person.

Question 5
In 100 – 200 words, explain the impact of fraudulent activities on consumer and agency.
Australian Consumer and Protection law has been working effectively to reduce the
fraudulent activity which are being performed on a daily basis. Whenever any of the
consumer or agency faces the fraud then they have to face number of problem and that
always creates problem for them. Talking about consumer, if they face any of the
fraudulent activity, then it becomes difficult for them to trust any of the person in the
market which is the major problem (Boddington, 2016). Secondly, it is not possible to
develop any of the healthy relation with other person within the market. If these types of
activity are performed then daily basis market has to face problem as well as customer do
not enter into the same market where they have been cheated. On the other side, agencies
are also affected because of fraudulent because they may have to suffer from huge losses
which can create future problem. Financial issues may occur and other future deals can be
postponed or even it may be cancelled. Overall, it is clear that any of the fraudulent activity
can create problem for the person because they will not have any sort of idea that what they
future steps they must take and if they plays to take any decision then how it should be
executed.
Question 6
Identify a minimum of four risks that may impact on an agency. Outline the strategies that
you would recommend to manage each risk.
Risk Strategies
Failing to provide the
services which has been
mentioned within the
contract
It is among one of the biggest risk which is associated with
agency in real estate sector. There are some of the occasion
where customers are unable to provide the services which
they mention within the contract terms and condition. In
order to deal with these particular circumstances, the
strategy which can be helpful for the agency is include
some of the services is option which might be given or
even it cannot be delivered as well. As it totally depends
upon the situation.

Wrongful
Discrimination
It is also one of the risks which may create issue for the
agencies which are dealing in the field of real estates. Here,
legal action can be taken against agency if each of the
things are not shared in detail with the client or even if
house floor is not shown to the customers. Here, in this
particular situation for overcoming from the problem, it is
necessary for agency to provide each of the information in
detail. Secondly, it will be effective if agency shows the
property to buyer before they decide to purchase. If this can
be done then risk can be reduced significantly.
Accidents that incurs
injury
These types of situation can be problematic in nature for
agency where high risk is also associated with it. Here, it is
necessary for agency to take professional liability insurance
which can be one of the beneficial strategies. It is one of
those strategy which will allow to deal any of the accident
which may take place unwantedly (Risks To Real Estate
Agents And How To Avoid Them, 2014). This strategy
will be also beneficial for agency because if any of the
accident takes place then agency will not have to pay any
of the damages.
Omission It is also one of the risks which is associated with agency
where they must ensure that the are able to maintain each
of the data and information in a systematic manner. It
means that whenever any of that situation arises where
agency fails to provide all of the legal documents them
problem may arise. In order to deal with this problem, it
will be important for agency and their members to check
each of the documents properly so that any of the person
will not have to suffer from any sort of problem in any
stage while performing their work.

Question 7
List and explain (2) penalties or disciplinary actions that can be taken by the Office of Fair
Trading for breaches of codes and standards for ethical practice in real estate.
There are different types of penalties or disciplinary action which can be taken against the
person who so ever is found to be guilty for not performing their task in ethical manner in
the field of real estate. Detail explanation to penalty has been listed below:
 Monetary Penalty: It is the first action which can be taken against the defaulter. If
in case default has been done by individual in real estate sector then penalty can be
imposed up to the price of $11000. But the case is different if it is found that default
has been done by the side of corporation as in that particular situation penalty will
be up to $22000.
 Licence Suspension: There is an option within real estate sector that if an unethical
practice has been done then suspension for license is also a option which can be
done up to the time unexpired tenure of licence (Lauri, 2019). It means that licence
can be cancelled for life time which means problem for the busines entity can
increase significantly.
In short, it needs to be understood that in any of the circumstance’s person should not
perform any of those work due to which legal bodies or officer is different position can
take action against the defaulter.
Question 8
Explain the role of procedures, forms and documents in managing risk of unethical practice.
There are different types of sector which is available in current scenario but there are
number of occasion where unethical practices are being performed. It means that in any of
the situation some of those decision must be taken so that unethical practices can be
reduced. For this, there is a huge role of procedures, forms and documents through which
risk of unethical practice can be controlled (Gaitho, 2019). Here, procedure has a important
role as it can force that how any of the real estate agency need to perform their task which
means that proper knowledge will be available and according to that particular pattern task
should be performed. This procedure will not allow any of the person to shift themselves to
perform any of the task by themselves own. On the other side, there are forms and
documents which are also equally important. It is because those forms and documents will
ensure that who will be legally penalised if any of the unethical practice are being

conducted. Proper code of conducts are explained within forms which are quite helpful.
Also, the forms will allow to ensure about the process which needs to be conducted for
rechecking of each work performed which means that risk of unethical practices will
reduce automatically in it.
Question 9
Apply your learning about ethics and explain (3) strategies you could undertake to respond to
concerns about discrepancies between personal and/or agency practice ethical practices and
those outlined in the standards for real estate ethical practice.
Personal and agency ethical practices are two different things but balance should be
maintained as both of them plays the crucial role for managing each of the activity in a
systematic manner. Person ethics refers to the situation where person has to identify and
deal with the situation in appropriate manner so that person do not faces any of the
problem. But, when it comes to professional ethics, it is completely different as compared
to personal ethics. It is because each of the ethical decision must be taken after considering
the benefit and disbenefit for the entity and its stakeholders. The three different types of
strategies that can be undertaken for the purpose of responding to the concern about
discrepancies between personal and agency practice are mentioned below:
 The first strategy says that it is necessary for the individual to identify that whether
work is of person in nature or it related with professional values. According to the
nature of work, decision should be taken.
 Secondly, it is essential to understand that person ethics should not include any of
the outsiders while taking decision, but in case of professional ethics, it is necessary
that ethical decision should be taken only after having the proper discussion with
different members in the panel (Moreau, 2020).
 Then, in person ethics, decision should be related to the limited number of persons.
On the other side, in agency ethical practices different persons are included which
means impact must be analysed upon different persons so that favourable result can
be obtained.
Question 10
In 50-100 words Describe how the agency can clearly communicate to the consumer their
rights and responsibilities, with regards to complaints resolution processes

Customer always plays the vital role within the agency which means that if any of the
problem arises then problem solution must be find out so that issue can be resolved.
Agency can communicate with customers regarding the problem with customers at initial
level and according to that they can take their decisions. Agency can communicate with
their customers in written form where they can mentioned about the steps which can be
taken by them for resolving any of the problem or for filing the complaint against the
default.
Question 11
List (2) sources that you can access to obtain advice about ethical practices.
Navalta, J.W., Stone, W.J. and Lyons, S., 2019. Ethical issues relating to scientific
discovery in exercise science. International Journal of Exercise Science, 12(1),
p.1.
Ametller, J., 2020. Challenging existing norms and practices: Ethical thinking at the
science education research boundaries. In Examining Ethics in Contemporary
Science Education Research (pp. 107-119). Springer, Cham.
REFERENCES
Books & Journals
Singhal, N. and Bhola, P., 2017. Ethical practices in community-based research in non-
suicidal self-injury: A systematic review. Asian journal of psychiatry, 30, pp.127-
134.
Back, J., 2017. Sustainable and Ethical Practices for the Fast Fashion Industry.
Deshpande, S. N. and et. al., 2020. Ethical Practices and Legal Challenges in Mental Health
Research. Asian Bioethics Review, 12(2), pp.87-102.
Boddington, P., 2016. Big data, small talk: Lessons from the ethical practices of interpersonal
communication for the Management of Biomedical big Data. In The ethics of
biomedical big data (pp. 277-305). Springer, Cham.
Lauri, J., 2019. Social movements, squatting and communality: ethical practices and re-
subjectification processes. Subjectivity, 12(2), pp.154-170.
Gaitho, P. R., 2019. Effect Of Ethical Practices And Organizational Structure On The
Relationship Between Strategic Leadership And Service Delivery Of County
Governments In Kenya (Doctoral dissertation, University of Nairobi).
Moreau, D., 2020. Ethical practices and self-politics in education: Ethical education as a
remedy for “bare life”? The example of the fight against racism at school. Le
Telemaque, (1), pp.61-74.

Online
Risks To Real Estate Agents And How To Avoid Them. 2014. [Online]. Available Through:
https://www.youngupstarts.com/2014/07/11/risks-to-real-estate-agents-and-how-to-
avoid-them/