Access and Interpret Ethical Practice in Real Estate: Case Study Assessment

This assessment evaluates the knowledge and performance of students in meeting consumer protection standards and dealing with ethical breaches and challenges in real estate through a case study assessment. The case study is based on Hinton & Ors v Commissioner for Fair Trading – NSW Caselaw. Students are required to identify breaches, summarize unethical practices, and outline consumer protection requirements and risks of unethical practice in real estate. The assessment is part of the BSB30120 - Certificate III in Business qualification.

1. Case study assessment
Criteria
Unit code, name and release number
CPPREP4002 - Access and interpret ethical practice in real estate (1)
Qualification/Course code, name and release number
BSB30120 - Certificate III in Business
Student details
Student number
Student name
Assessment declaration
Note: If you are an online student, you will be required to complete this declaration on the
TAFE NSW online learning platform when you upload your assessment.
This assessment is my original work and has not been:
 plagiarised or copied from any source without providing due acknowledgement.
 written for me by any other person except where such collaboration has been
authorised by the Teacher/Assessor concerned.
Student signature and date

.

Assessment instructions
Table 1 Assessment instructions
Assessment details Instructions
Assessment
overview
The aim of this assessment is to assess your knowledge and
performance in meeting consumer protection standards, and
in dealing responsibly with ethical breaches and challenges.
Assessment Event
number
3 of 3
Instructions for
this assessment
This is a case study assessment that assesses your
knowledge and performance of skills required by the unit.
This assessment is in four parts:
1. Part 1 Case study details
2. Part 2 Case Study review
3. Part 3 Sources of advice
4. Part 4 Communication strategies
And is supported by:
 Assessment feedback
 Azure Beach Incident report form
Submission
instructions
On completion of this assessment, you are required to
submit it to your Teacher/Assessor for marking. Where
possible, submission and upload of all required assessment
files should be via the TAFE NSW online learning platform.
Ensure you have included your name at the bottom of each
page of documents you submit.
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 you
must answer all the questions correctly.
If a resit is required to achieve a satisfactory result it will be
conducted at an agreed time after a suitable revision period.
•
What the
Teacher/Assessor
will provide
Access to this assessment and learning resources, including
the student workbook and any supporting documents or
links.
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Assessment details Instructions
Azure Beach Incident report form
Assessment
feedback, review
or appeals
Specific task instructions
The instructions and the criteria in the case study will be used by the
Teacher/Assessor to determine whether you have satisfactorily completed the Case
Study Scenario. Use these instructions and criteria to ensure you demonstrate the
required knowledge.
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Part 1: Case Study Details
To complete this part of the assessment, you will be required to read the Case Study
provided.
Once you have read the information, you must complete your responses to questions
in the parts to follow.
Your responses must:
 address all parts of each question with examples as appropriate
 use clear and concise language to ensure the intended meaning is understood
 provide references where required, using either the Harvard or APA style
Once completed you must submit this assessment to the Teacher/Assessor for
marking.
Case Study Scenario:
This scenario is based on the Hinton & Ors v Commissioner for Fair Trading – NSW
Caselaw. Hinton & Ors v Commissioner for Fair Trading [2006] NSWADT 257]
Refer to the following for information on consumer protection requirements:
Real estate ACCC
Misrepresentation | NSW Fair Trading
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Part 2: Case Study review
Task 1
Consider the Hinton & Ors v Commissioner case from Part 1 and answer the
following questions relating to consumer protection.
Read each question carefully and follow the required word count where identified.
Summarise the unethical practice that took place in the Hinton & Ors v Commissioner
case. Your response must include applicable legislation and sections of the
legislation. Your summary must include the following:
1. Write a summary of the facts of the case by discussing the following items:
 material facts:
 outline the unethical practice that has occurred:
 an explanation of how the unethical practice relates to consumer protection
requirements:
Using workplace forms. Use the Azure Beach Incident report form to record the
events of the Hinton & Ors v Commissioner case.
Material facts
The triple murder at the property was not disclosed to the potential purchaser. This is
the stigma for the buyers was largely because of the personal religious belief. The
court then said that the other prospective purchasers were entitled to disclose a
significant matter. The similar principles would be the application of the property
which was maid for lease. Tendency of laws to not spell out what is needed for the
disclosure of all the areas is considered to be the factor which is influenced under the
consumer law.
Outline
The unethical practices which occurred in this case were the following,
 Lying and Intentionally misleading the customer.
 Encouraging the customers towards a wrong conclusion.
 Factually correct information with wrong impression.
 Not correcting a misunderstanding.
 Not updating information which has changed.
 Leaving out or concealing important information.
 Making false and inaccurate claims and exaggeration.
 Staying silent about the materialistic factors of non-disclosure.
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◦
Explanation of unethical practice
In this case Hinton a real-estate agent in new south wales was successfully
prosecuted by the commissioner of Fair trading for marketing of home in North Ryde
without revealing the prospect about the tragic triple murder that had occurred in the
house in the past. The managing director in this case was the one who informed that
he would not have bought the property from Hinton if he knew about the history of the
property. This was the breach of moral conviction as per the commissioner. The
unethical factors was the lying or intentionally misleading the client or customers.
This was the result of wrong conclusion that was encouraged for factually correcting
the information that was given as false information.
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2. Identify the breaches that occurred and outline their impact on the consumer and
the agency.
Table 2 Breaches
Identify breach and description
of activity Impact on Agency. Impact on client
Intentional misleading the
client or customer by lying. In
this case study the
commissioner was given
misleading information
regarding the history of the
property on which triple
murder was committed
previously.
This results in the
agency losing the trust
of the customers.
Misleading can be the
result of giving false
information which has
created negative
impacts on the customer
decision-making,
This can be the reason
due to which the
customers are
influenced to increase
the growth. Misleading
the customers can
break their trust towards
the agency. This can be
also resulted in legal
actions taken against
the agency.
Not correcting
misunderstanding. In this
case the customer
misunderstood about the
history of the organisation.
If the customer is
misunderstood it is the
duty of the agent to
clarify them. Not
clarifying their errors is
also a misconduct. This
misconduct generally
results in the downfall of
the business activities.
The client when has
misunderstood a fact
not being able to have
the clarification of that
fact can result in the
client making decision
on the basis of
misunderstanding. For
the real-estate
businesses this factor
can have huge issues.
Not updating information
which was changed. In this
case study it was seen that
Hilton agency later changed
in information about the
property without informing the
commissioner.
Not updating the
information which has
changed is not just an
unethical conduct to the
customers but also a
misconduct towards the
agency. It can result in
future changes that has
potential of creating new
conflicts which can
result in downfall of the
industry.
Updating information
without the consent of
the customers is
unethical and doing that
can impact the
customers relationships.
Making inaccurate claims and
exaggeration. The Hinton
agents make false claims
about the truth of the property
history.
Creating inaccurate
claims and exaggeration
is misinterpretation of
data which influences
the agencies operations
The customers expect
only trust and honesty
from the agents. Making
inaccurate claims can
be the reason for
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and is the breach of
their social integration.
negative impacts on
their relations with
client.
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3. Identify the consumer protection legislation that was breached.
The consumer protection legislation in Australia is the meaning of consumer laws
that guarantees, consumer product safety, fair contract terms and fair sales
practices. This ACL law protects the consumer and is applicable to anyone
conducting the businesses. The breach of the consumer protection in this case study
was the unfair contract terms and unconscionable conduct. This can be considered
to be the factor which impacts the growth of the business. The Hinton has been
found to misguide the customer in this case study regarding the history of the
property that included three murders in the past. At the initial level agency did not
reveal the truth. Later this company changed the contract by adding partial
information about a suicide on the property. This shows that the agency was
misguiding the customer in different ways. During this practice the agents have been
able to bring unsolicited. There are areas which has been able to develop a sense of
strategical development which with the help of operations can be interested in the
creation of consumer product safety recall. This is how there was a breach in the
consumer protection legislation as the customers was made false promises by the
agents regarding the product. This according to the Australian law is the meaning of
consumer laws that guarantees the consumer product safety and fair contract terms
which has been able to develop a law that protects the breach of the consumer
protection in this case study. Thus, in this case study as per the ACL law the agency
can be held accused of the misconduct that is misleading of information, false
information, misleading and exaggeration of the evidences. Therefore, due to the
clear cut understanding of issues faced by the commissioner in relation to the
misconduct of false information about the property can be held responsible.
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4. In relation to the Hinton & Ors v Commissioner case outline the consumer
protection requirements for real estate and the risks unethical practice has for the
identified participants.
Real estate ACCC
Misrepresentation | NSW Fair Trading
Table 3 Unethical practice
Risk of unethical practice
Outline risk
Student responses will vary in their outlines
however they should include the following.
Risk to consumer
The risks for the consumers in this case study has
been identified that the consumers are the ones
which face issues or lack of trust and
compatibility. The customers trust the agents in
the business of real-estate in which they are
unable to manage or develop a strategic
understanding of how the areas of interests can
be affected.
Risk to agency
The Image of the agency is at the risk when such
a large scale misconduct has been done by the
customers. This has been considered to be the
factor which influences the business in the breach
of the ethics which is known to be damaging for
the agency.
Risk to industry
The real-estate agency which has been known for
its misconducts in the past. Is going to be even
more negatively influenced after such a
misconduct. Such unethical behaviour would
result in the creation of strategies that develops
into unethical practices. The industry of real-
estate is now going to be having even more
issues in the management which can influence
the downfall of the organisational operations. For
keeping the business of the organisation at
success
Personal risk
The personal risk from conducting such a practice is
that the business will not have to develop new
strategies which can be influenced with the help of
organisational practices which creates new strategies
that can develop effectiveness of and growth in
development of operations which helps the individual
committing negative influences.
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Community
The community for this business can be
considered to be having a negative impact which
influences the real-estate business to face a
major downfall. In this organisation the strategical
development of the operations can also mean that
the business needs to understand the factor that
has been able to understand effectiveness of the
operations of the community which has been able
to influence with the ethical management of the
operations.
5. Identify and discuss the ethical standards, and codes of conduct or codes of
practice that should have been applied to the Hinton & Ors v Commissioner case
to demonstrate ethical practice, assume the agent was a member of the REI NSW.
Table 4 Ethical standards/Codes of conduct
Ethical standard Application of ethical standards
The realtors should not in any
circumstance mislead the customers for
the influencing their decision-making.
This ethical standard which talks about
the misleading the customer is a factor
that needs to be highlighted. Hence, the
focus of the organisation should be on
ensuring that the customers are not
provided information which is misleading
or not correct. Hence, providing the
customers with information that is truth
is the key towards being a successful
ethical standard. It is important to keep
the ethical standards maintained for
being ethical and also being able to
manage the strategies which influence
the growth of the confidential information
which is helpful for the management of
the image of the agency. In real-estate
maintaining this standard is considered
to be the best practice for the strategical
and operational growth.
Revealing confidential information of the
clients which can influence the learning
practices.
For a real-estate business the
information of the customers is very
confidential which is the key factor that
impacts their strategies which is
considered to be negatively influenced
by the organisation. In order to make
sure that the business is able to grow
strategically it is very important for real-
estate organisation to maintain their
ethical standards with the help of
keeping the confidential information to
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themselves. The property management
of the organisation has been known for
the ethical standards it is able to
maintain which in return is the factor that
provides the business with the
sustainability and positive relationship
with the customers.
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Part 3: Sources of advice
Task 1
Complete the following table regarding sources of advice on ethical practice in real
estate. You first need to identify the source by either name and/or link to website.
You then need to evaluate the source for the effectiveness of the advice they
provide. Consider talking about the following:
 Applicability across all aspects of real estate practice.
 Is the advice official or is it a matter of opinion?
 What are the strengths of this resource for advice and what are the
limitations?
An example has been provided for you.
Table 5 Sources of advice
Identify
resource for
advice
Evaluation of source for type of advice that will be received
Example:
Solicitors
A solicitor may assist by providing understanding of legal
requirements and how to ensure ethical practice is considered
Source 1:
It all starts with
ETHICS,
2017[Online].
Available
through:
<https://www.re
insw.com.au/W
eb/Members/R
eal_Estate_Jou
rnals/201703/
It_all_starts_wit
h_ETHICS.asp
x>
This source has been able to provide the definition of being
ethical as the part of human life. This source evaluates whether
the ethics in real estate is a perception or reality. In this source
the 5 Es of elements that defined the necessary qualification of
the profession. In this source the general perspective of the
customers that don't trust the real estate agents and survey have
been considered. This source the discussion on the behaviours of
the real-estate agents have been made for ethics and honesty
which means how to provide the operations as per long time. This
source explains the need of changing the market with the help of
being much more ethical and focusing on being honest and trust
worthy in the market of real-estate. From this source provides the
views of people which believe that with the help of high
expectations and right balance the access of the information can
help the business bring very high expectations that is high and
are not being able to satisfy the organisational operations loudly.
In this source the point of view of CEO of the professional
standard's authority towards understanding professional ethics
and standards which in the context of professionalism. This is
helpful for the organisation to develop negotiations which impact
the code of ethics which provides the practitioners for the clients
and consumers. The compliance of the genuinely robust for the
compliance in the monitoring and enforcing the measurement of
the important part of good code of ethics. In this source the
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importance of the ongoing commitment for the real estate
business has been considered to be the factor which influences
the improvement of professional standards. For a real-estate
ethical practices the transparency of the business has been
explained in the biggest challenge for defining the behaviour that
is required for the organisation. This is helpful for the leaders in
central role for lead by example which is needed for
demonstration of the teams.
Source 2:
The Code of
Ethics for Real
Estate,
2018[Online].
Available
through:
<https://homeg
uides.sfgate.co
m/code-ethics-
real-estate-
1602.html>
Ethics in this source has been explained for the customs that
refers to the practices or society of the community that can be
considered to be the morally sounding through which the
behaviour of the organisation can be influenced. Ethics have
been show to be very important for the activities of the skilled or
influential professionals which has affected the Realtors of the
national association of realtors. The code of ethics and the
standards of practice of the national association of realtors is the
factor that affects the code of ethics and standards of practice in
the national association of golden rule in ethics. This source
provides a tip to the ethics in real-estate which is helpful for the
business in renewing the covered rules and regulation for the
management of exams that include the review of ethics that are
involved in the real estate. The special emphasis on the fiduciary
relationship between agents and also their clients are considered
to be the factors that develop the responsibilities for the clients.
This is the factor which has helped in understanding the ways in
which the realtors need to work with the clients. This is also the
relationships between the agents and their clients which
influences the ethical practices. In the organisation. The real-
estate transactions needs to be kept by the organisation that are
effective in envying the financial information for the clients. The
ethical obligation of keeping that information private is very
important for enhancing that relationship. It is important for the
Real-estate agents to not provide any kind of legal or accounting
advice as it is not an ethical aspect to their practices. This is the
practice which the state's codes of ethics can be considered to be
the reason why the association of the guidelines for the real-
estate agents is effective for the code of ethics and arbitration of
manual for the application of the national association of Realtors
code.
Source 3:
10 ETHICAL
ISSUES TO
WATCH AS
AN AGENT,
2021[Online].
Available
This source describes the ethical challenges and issues which
helps the business in answering the ways in which they can keep
an eye on the ethical practices of real-estate. Agency disclosure :
is the state license law and association of the codes of ethics for
usually requiring the agents for the disclosure of their agency
status. This is the important for the conversation that is helpful for
the consumer to get the serious attention. Accidental dual agency
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through:
<https://www.3
60training.com/
blog/10-ethical-
issues-to-
watch>
is the first one which is insufficient in agency for the disclosure of
the lead towards the dual agency. The information that is written
in the consent of both the parties is required for the
representation of the clear and straight forward agency. The
property disclosure is a very big ethical misconduct which should
not be committed by the realtors. Steering is also a mistake which
the business makes for trying to help the organisation in the
management of the organisation. Blockbusting is usually not an
accidental fair housing violation. Blockbusting refers to the
practice which is helpful for the business in the management of
the fears for increasing the people for minority group that is going
to increase the property values. Discrimination is also an ethical
consideration which is needed to be maintained for the tenant for
the protected class. State real estate for licence laws for imposing
the agents for the discussion of the commission rates for each. In
some cases the exaggeration of the ways in which the business
is able to misrepresent the property. These issues that have been
explained the areas which are needed to be considered for the
management of ethics in the organization.
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Part 4: Communication strategies
Task 1
1. In the following table you are required to identify at least two appropriate
communication strategies to support ethical practice in real estate. Analyse
the features of each communication strategy to demonstrate how they ensure
effective relationships. Consider different types of communication methods
such as:
 Written
 oral
 digital
The relationships that you need to consider are:
 Customers
 Clients
 External agencies.
Table 6 Ethical communication strategies
Relationships with Communication strategy 1 Communication strategy 2
customers
Creation of consistent
marketing and PR key
messaging, which will
include the crucial way of
making sure press
releases, social media, e-
blasts, ads, websites are
having the consistency in
the messaging. For the
customers building brand
will provide them the loyalty
and people will think of the
business as trust worthy. In
this the digital method of
communication is the most
effective for the better
relationship with customers.
Verbal communication for
the realtors have been
known to be the best factor
that influences the thinking
before speaking,
respecting other person's
point of view, keeping
close relationship with the
connection. In this
connection with the
customers will help the
individuals to develop new
strategies that can provide
the growth that is required
for the organisation in
development of the
business.
clients
For the clients this form of
communication will involve
mostly the visual
representation of the key
marketing practices which
help them to grow with the
organisation. In real-estate
In comparison to this the
clients require the more of
a cohesive strategy or a
bigger-picture that supports
the business plan for the
connection with the
prospective and existing
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the business needs to
perform the major practices
which are considered to be
the reason that helps the
realtors be ethical towards
the clients. Brand
development helps the
clients to increase their
productivity. Digital method
of communication in the
organisation provides the
business the key success
which is necessary for the
growth.
the customers. Supporting
the specific tactics for the
achievement of branding,
marketing and clients
services goals. This needs
to be done with the help of
oral communication for
implementation for the
success that is required. In
this communication
strategy the factor which
influences the
effectiveness is the
managing strategical focus.
external agencies
Focusing on the brand
development marketing
strategy is going to be very
useful for the business to
manage the success of the
organisation. The external
agencies are attracted
better when the brand
value of the real-estate is
higher. Hence, marketing
and spreading key
messages with the digital
platforms can help the
communication to develop
better relationship with the
external agencies. Digital
platforms for this
communication is the most
effective in creation of
positive relationship.
The realtors need to have
a specific communication
strategy which is impacting
the action plan for
improving communication
within an agency. This is
the factor which requires
the establishment of the
goals for the
communication strategy
towards the enabling of
strategic mix of verbal and
non verbal communication
style.
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2. Describe two strategies that would address complaints resolution processes.
Identify and discuss how these also address consumer rights and
responsibilities.
Table 7 Complaints strategies
Complaint resolution strategy Consumer rights and responsibilities being
addressed
Listening Listening to the consumers helps in
understanding the issues they are
having with regard to the consumer
rights and responsibilities being
addressed. Listening in this type of
scenario is considered to be very
effective way of bring success to the
business and also being able to develop
new and effective ways of understanding
the ways in which a positive relation can
be developed in the with the consumers.
The right amount of listening can provide
the best rephrasing practices for the
better morale of the business.
Empathising Empathising to the consumers with the
rights and responsibilities helps the
organisation in the development of
factors which influences the growth of
the business. Empathising is helpful for
the individuals to understand the
situation of the consumers and helps the
realtors to make unpresidented
decisions. Sympathising helps the
agents to understand the situation and
also bring growth to the business during
the creation of successful outcomes.
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Task 2
Scenario
Jenny is assisting Adrian with the sale of 201/10 Georges Court, Smithdale. She has just
received a call from the buyer asking if she could please recommend someone for the Pest
and Building report.
Jenny’s uncle does Pest and Building Inspections and has told her if she refers someone to
him, he will pay her $50.00. Jenny gives her uncle’s contact details to the buyer of Georges
Court.
Using the scenario, complete the following table by identifying and explaining
strategies and options available to respond to concerns about discrepancies between
personal or agency unethical practice and real estate ethical practice standards.
Table 8 Discrepencies
Identify discrepancy
(personal or agency
practice) for unethical
practice.
Identify and explain real estate
ethical practice standards.
Outline of strategy and or
options to address unethical
practice.
Collecting two payments
on single sale
It is not at all ethical for a real-
estate agent to collect income
from two different sources for a
single sale. Jenny had to refer
someone for performing their
duties as the best person
which would prepare a Pest
and Building report. Hence, it
can be said that the business
needs to develop some ethical
standards which are efficient in
the management of
discrepancies between
personal or agency unethical
practices and real-estate
practice standards. Hence,
receiving the payment from
the uncle for the referral is
unethical practice,
The outline of the strategy
has been considered to be
the factor which influences
the ways in which this
situation can be dealt with.
Jenny needs to give the
contact info of her uncle to
the customers so that they
can directly make contacts
with them. This is going to be
the best way of treating this
situation. Which would prove
the organisation the critical
requirements which would
help in the development of
standard's of ethical
practices.
Disclosure of private
information
The information that the client
needed to make a pest and
building report was confidential
information of the organisation
that was needed to be kept
private by the organisation in
during the options of the real-
The information that was
leaked by Jenny should not
have been disclosed like this
to her customers. Better
practice in this situation was
to give the customer the
contact number of the uncle
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estate agent. Providing the
information to the uncle of
Jenny is unethical practice as it
is misconduct of sharing
unethical information.
who provides the services of
the pest and building so that
they can directly make
contact to them.
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Assessment feedback
Assessment outcome
☐ Satisfactory
☐ Unsatisfactory
Assessor feedback
☐ Has the Assessment Declaration for this assessment event been signed and
dated by the student?
☐ Are you assured that the evidence presented for assessment is the student’s
own work?
☐ 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
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Document title: CPPREP4002_AE_CS3of3 Page 22 of 22
Resource ID: PRJ0011587_CPPREP4002_AE_CS3of3