Negotiate Effectively In Property Transactions

This article discusses the negotiation process in property transactions, including short answer questions and case studies. It covers topics such as effective communication, negotiation techniques, and legal rights of agents, landlords, and tenants. The output is in JSON format.

Running head: Negotiate Effectively In Property Transactions 1
Negotiate Effectively In Property Transactions
by
Course:
Tutor:
University:
Department:
Date:

Negotiate Effectively In Property Transactions 2
Table of Contents
Activity One: Short Answer Questions..................................................................................3
Assessment Task One: Case Study.........................................................................................6
Assessment Task Two: Case Study.......................................................................................11
References...............................................................................................................................15

Negotiate Effectively In Property Transactions 3
Activity One: Short Answer Questions
1. How would you open a discussion to establish the issues and outcomes of each
party to the negotiation?
I will begin by introducing myself and articulating the agenda while manifesting calm
confidence all through.
2. How should these issues be recorded?
Using flip-charts, whiteboard, or on a typical computer for all to view (Jackson, 2015).
3. How should alternatives be established and recorded?
Through courts, tribunals or mediation and can be recorded using the relevant business
technology equipment such as computers (Goldberg et al., 2014).
4. List 4 effective negotiation techniques and briefly explain each.
Speaking skills –articulate issues in a convincing manner.
Non-verbal communication skills – e.g. body language and are effective in expressing ones
feelings.
Listening skills –help in the comprehension of information during communication.
Personal attributes – are individual characteristics which can promote or hinder effective
communication such as attitude (Kelchner, 2017).
5. Why are these effective?
Because they ensure that information is appropriately conveyed, and relevant feedback is
given (Training, 2012).

Negotiate Effectively In Property Transactions 4
6. Communication is a vital part of the negotiation process. What do you consider
is effective communication?
Effective communication is one in which information is properly conveyed using the
appropriate channel and it’s understandable so that relevant feedback is given (Training,
2012).
7. Are graphs and charts of use in the negotiation process? Why?
Yes. To record the negotiation process and outcomes and for good general view by the
parties.
8. Is compromise always the best solution? What are the alternatives?
Yes. Cohen (2017) assert that compromise is sometimes beneficial for both parties rather than
holding to the original positions and disagreeing. Alternatives are courts and tribunals
9. How is agreement recorded?
Using business equipment and technology and confidentiality is highly maintained.
10. What follow up is necessary?
Follow-up regarding the final agreement is necessary to ensure the clients understand the in-
depth significance of it.

Negotiate Effectively In Property Transactions 5
Assessment Task One: Case Study
The case scenario involves the sale of a home belonging to a friend called Jim. The issue at
hand is about the non-inclusion of the creepy crawly pool cleaner which the buyer notices
that it was, not included in the initial listing and demands that it be part of the initial
settlement before he can complete the transaction. On the other hand, Jim argues that the pool
cleaner doesn’t come with the swimming pool and furthermore it is new and therefore will
keep it. This situation will be handled in three central negotiation stages namely the
assessment or conflict or dispute, negotiation resolution, and evaluation of the response
(Crump, 2011).
The assessment of conflict disagreement is the initial stage in which the conflict or dispute is
identified and analysis of reactions done based on the legal requirements of the organization
(Ramsbotham, Miall, & Woodhouse, 2011)., Clea,r and open discussions between buyer and
seller are held to assist to clarify the issue at hand and to ascertain the expected outcomes
within the confines of the legislation of the agency through negotiation. The Negotiation
process will involve comprise or agreement while an argument is avoided. The negotiation
process will be carried out in six stages namely groundwork, debate, goal clarification,
arbitration towards win-win scenario, settlement and the execution of a course of action
(Lewicki et al., 2011).
The negotiation process will adopt a structured approach to ensure a desirable outcome is
achieved. An agreement with the parties on the venue of the discussion,n will be done in
addition to the expected attendees. The timescale for the discussion will be agreed upon by
both parties to prevent unnecessary differences. All the parties will be informed of agenda
and any relevant issue such as agency legislation, and any applicable organizational policies
on negotiations. These will be sent to the parties via email. This preparation will help to save
time for pertinent issues during the meeting.

Negotiate Effectively In Property Transactions 6
During the discussions, both the buyer and seller will then be allowed to put forth their
respective sides of the case. I will then apply essential negotiation skills such as interrogation,
listening and explaining. During this process, I will be noting down significant points from
both sides. Any disagreement will mainly be my primary focus. Each party will be allowed
20 minutes to present their case. I will also apply my listening skills to accurately receive
messages in the process of communication. For example by talking less and listening more,
preparing to listen and putting both parties at ease, removal of any distractions such as
looking out of the window, avoid doodling, and leaning forward. Furthermore, I will employ
effective communication techniques to ensure there is the correct exchange of information.
These include active listening, use of body language and non-verbal communication,
speaking precisely and audibly, the use of appropriate tone and language. Other specialized
advice might be sought for by incorporating another party but within the agency
requirements. This will be dependent on the trend of the discussions and the outcomes if any.
The second stage in the negotiation process is negotiation resolution which entail the
negotiation with Jim and the buyer of the home to arrive at the desired results. The
appropriate information will be collected from both parties, analyzed and then ordered to
enlighten the negotiation. The method of negotiation is carried out according to the
organizational rules and policies. Professionalism is to be practiced during the negotiation by
showing respect to both parties according to the ethical practices and regulations of the
agency.
Then I will apply effective negotiation methods to try to persuade and attain an agreement
between Jim and the buyer and to maintain an important interaction and minimize any
misconduct. These techniques include the regulation of tone of the voice and body language,
being flexible and showing the desire to negotiate. I will also use affirmative, assured and
supportive language to avoid any bias, apply clear presentation of alternatives and penalties. I

Negotiate Effectively In Property Transactions 7
will also employ the use of strategic interrogation and listen to collect information and to
achieve a total concentration of both Jim and the buyer. Based on the preceding discussion,
the objectives, interests, and opinions of Jim and the buyer will be clarified and listed in the
order of preference. The clarification will also assist in the determination of the shared
ground.
Any contradictions, vagueness, doubt or confusion are recognized and clarified based on
agency procedures. Clarification will serve to ensure a correct understanding of either Jim or
the buyer’s statements. Also, it helps to reassure the speaker of the honest concentration of
the listener and an interest in the comprehension of the sentiments (Brownell, 2010). This
will be done through non-judgemental questioning, summarizing and requesting a response to
ascertain whether it is right (Huerta-Wong, & Schoech, 2010). Any factors that may affect
the security of Jim and the buyer or either are identified and proper contingency measures
effected. These include the use of specialists and experts, intervention and counseling.
The possible agreements are then analyzed and their viabilities evaluated. There are two
significant possibilities in this case; both parties may still hold their positions, i.e., Jim may
even demand that the pool cleaner machine was not listed in the initial signed agreement and
the buyer may still hold that it must be included and that he/she will not pay the extra sum for
it. On the other hand, both of them may agree to compromise but at least benefit from the
transaction. The final position is confirmed by the assurance that both parties are cognizant of
the consequences. However, both Jim and the buyer are to be offered with reports or any
subsequent communication to confirm their final responses.
After considering the views and interests of both Jim and the buyer, we will strive to reach an
agreement. At this step, I will endeavor to keep an open mind to attain a solution to the issue
at hand. The deal will then be clarified to ensure that both parties understand what they have

Negotiate Effectively In Property Transactions 8
decided. The agreement here implies that either Jim agrees to include the pool cleaner
machine in the listing or the buyer agrees to pay the extra $950 for the machine after Jim
declines to include it in the listing. In such a case, the transaction will continue as it was
initially and the buyer will be expected to settle the remaining amount, and the deal will be
signed off. An agreement will only take place when both of the parties are willing to
compromise for the existing alternatives so that both parties feel that they have gained
something in the agreement (Deutsch et al., 2011).
Another possible outcome is a disagreement whereby both parties stick to their positions.
This will demand alternative solutions such as rescheduling of the meeting or involving the
courts, tribunals or conciliation and mediation. An agreement is to be made on whether to
offer the parties’ time to brainstorm or to seek legal intervention. The additional meetings
will still repeat the process of negotiation as outlined above. Any further ideas will then be
recorded and the scenario reviewed. Other specialized advice might be sought for by
incorporating another party but within the agency requirements. However, in the case that
either or both parties prefer the legal process, an agent, I will offer them information on the
possible consequences of the same and have them to sign on their final agreement.
The third and final step in negation process is response evaluation. After both Jim and the
buyer have presented their cases based on their understanding, both responses are evaluated
of their effectiveness and reviewed based on the Australian Trade practices laws and
guidelines, and the company’s requirements like complaint and dispute resolution procedures.
The feedback evaluation results are systematically arranged in a format that is appropriate for
analysis based on the company requirements. Modern, useful business technology equipment
is used to organize records and reports based on the suitable OHS (Eason, 2014), and by the
governmental and agency policies. All the recorded information is stored securely, and

Negotiate Effectively In Property Transactions 9
confidentiality maintained according to the governmental and agency policies. The
equipment includes computers, data storage devices, and the internet.
The case study shows a wilful omission of valuable information by Jim while listing his
house for sale. This is against the organizational requirements on legal and ethical
requirements and codes of practice, and a breach of the legislative provisions on trade
practices laws and guidelines and consumer protection (Howells & Weatherill, 2017).
Therefore, the buyer has all the right not to pay an additional sum for the swimming pool
cleaner which initially was indicated in the listing. The buyer acted on the information
provided by Jim and therefore is justified to acquire the home inclusive of all the listed items.

Negotiate Effectively In Property Transactions 10
Assessment Task Two: Case Study
The case study involves the sale of the property with tenant in situ. There are frequent issues
that arise while selling tenanted properties. The common one is the refusal by the tenant for
viewings by the prospective buyers which is the scenario in the case study. In such a situation
it is crucial that the legal rights of the agent, landlord and the tenant be reviewed to make an
informed decision.
The rights and duties of the agent in the case study are only bound to the landlord who is the
vendor and to the buyer excluding the tenant. The specific legal responsibilities of the agency
in the case under study include the duty to educate the landlord on the process of selling the
property including the best options, to search for best buyers and propose trusted experts that
are beyond the services offered by the agency. The agent also is mandated to take the
prospective buyers for viewing (Levitt & Syverson, 2008). However, in the case study, the
agency is not bound in any way to the tenant and therefore can only operate within the
agreement.
The landlord in the case study is also entitled to some rights. The agreement between the
landlord and the tenant to continue to reside in the house and sale will depend on whether it is
a formal agreement or it is backed-up with an AST agreement. According to the Residential
Tenancies Act 2010, NSW, if there is an AST agreement between the tenant and the landlord,
then the tenant is to vacate the house after being served a two months’ notice by the landlord
(Hodgkinson, 2008; Lindsey, 2010; Jacobs, 2008).
The right of the landlord to show potential buyers the property of the tenant in situ will rely
on two things; first, if the tenant allows it and secondly if in the agreement between the two
had a clause which expressly allows the landlord to access the premises irrespective of the
reason. If such a provision exists in the contract, the Residential Tenancies Act stipulates that

Negotiate Effectively In Property Transactions 11
the landlord must first serve the tenant a 48 hours’ notice before the planned visit, and the
tenant must first adhere with the request (Hawkins, 2015). The absence of such clause will
imply that the landlord has the right of access to the property. However, landlord access to
premises is traditionally dependent on the established rapport between the tenant and the
landlord (Bryan et al., 2015).
The only situation that the current tenant can be evicted from the premises according to the
NSW Residential Tenancies Act 2010 is when he breaches the tenancy agreement, when he is
guilty of illegal or immoral use of the property, deterioration of the property due to the
tenant’s negligence, issuance of notice to quit by the tenant, the tenant sublets the house
without permission, and the property is justifiably required by the landlords close relative
(Garner & Frith, 2010).
The tenant enjoys various privileges during the sale of the properties under section 100 of the
NSW Residential Tenancies Act. The eviction of a tenant during this period will depend on
multiple factors including the period the tenant has been in the house, in addition to the
tenancy agreement date, the type of tenancy, i.e., whether assured shorthold or protected
tenancies. If the tenant in the case study occupied the property by 15th January, then his
eviction will almost be impossible because the tenant is deemed to be a “protected” tenant
(Arden & Dymond, 2012). Furthermore, the rent rate of protected tenants is different from
that of the market rate because it is usually set by a rents officer. Assuming that the tenant in
question occupied the premises between 15th January and 27th February, then he is deemed
to an assured shorthold tenant. Also, the tenant was not served with a notice, meaning he is an
assured tenant and eviction will have to take another legal process (Cowan, 2011; Carr &
Cowan, 2015).

Negotiate Effectively In Property Transactions 12
In the scenario of the case study, the tenant is bound by the original tenancy agreements even
under the new landlord to be who assumes the tenant’s Assured Shorthold Tenancy (AST)
after the purchase. The tenant is entitled to eviction after being served a 60 days’ notice under
the NSW Residential Tenancies Act 2010, and this is on condition that it is AST (Garner &
Frith 2010). This means that even the buyer does not have the right to cancel the initial
agreement and thus no eviction right.
Under section 53(4) of the NSW Residential Tenancies Act, the tenant has the right to allow
viewing or not depending on whether the tenancy agreement expressly includes a clause for
the same. If there is no such clause, the tenant has the right to decline the viewing, or it is
done at his discretion. Any form of coercion or bullying by the landlord with an objective of
gaining access to the tenant’s house including repeated requests and intimidation by the
landlord without notice will be regarded as trespass, invasion of property or breach of silent
covenant.
The tenant's objections can be summarised into two namely, the opposition to “open house”
and unavailability. With regard to these objections, the solution will depend on the type of
agreement with the landlord (Assured Shorthold Tenancy (AST) or protected tenant), the date
of entry into the premises or if there is any clause in the agreement about landlord’s access to
the premises for whatever reason be it repair or review. If the tenant enjoys the rights of a
protected tenant, then the decision to view the house by buyers is left at his discretion, and
that is on Sunday when the agency is not in operation.
On the other hand, if the tenant is an assured shorthold tenancy, then an eviction can only be
served after a two months’ notice to terminate the initial tenancy. And in case the sitting
tenancy declines to vacate, then the landlord can advisedly commence legal proceedings.
These procedures will only take place with the consent of the landlord to sell an open house.

Negotiate Effectively In Property Transactions 13
On the contrary, the buyer still insists that the house has to be sold with the tenant in situ, and
therefore, the agency will have to look for alternatives like offering me an off-duty on a
different day so that I can make it on Sunday to show the potential buyers the property. In
such a case the tenant will have to be served with a notice before 48 hours of the visit. This is
because an agreement had already been entered into by the agency with the buyer and
therefore cannot be wilfully breached.
The situation at hand creates a big problem for the agency to fulfill its mandate. All the
potential buyers are halted in the process of desiring to buy the property because they cannot
view it and therefore can’t buy something they haven’t evaluated. Also, the marketing role of
the agency is not fruitful since the interested clients cannot access the property. The
availability of the tenant is also another issue because he is only available on Sundays when
the contracted agent is off-duty. Perhaps the most challenging part of this case is that the
vendor wants to sell the property while the tenant is in situ to continue receiving rental
income during the time of sale, a situation that makes it difficult for buyers to view the
property at once.
Based on the complexity of the situation, the only option left for the organization is to
reorganize itself and offer me an off-duty during the weekend so that the potential buyers can
be taken for viewing on Sunday when the tenant is available and willing. Any
misunderstanding, contradiction, vagueness or doubt regarding the intended visit is identified
and clarified based on the organizational policies on privacy and confidentiality rules and
policies to the tenants. For example, providing a 48 hours’ notice to the tenant before the
visit.
After the reception of the tenant’s feedback of the visit notice according to section 53(4) of
the Residential Tenancies Act 2010, the response is evaluated and reviewed. Then the

Negotiate Effectively In Property Transactions 14
potential buyers are notified of the visit time and date. The findings are recorded and
organized in a suitable format for analysis based on the agency policies. The technology
equipment in business is then used to record the processes and reports compiled. The
information is stored securely and confidentiality maintained.

Negotiate Effectively In Property Transactions 15
References
Arden, A., & Dymond, A. (2012) Manual of housing law. Sweet & Maxwell.
Brownell, J. (2010). The Skills of Listening‐Centered Communication. Listening and human
communication in the 21st century, 141-157.
Bryan, J., Deaton, B. J., & Weersink, A. (2015) Do Landlord-Tenant Relationships Influence
Rental Contracts for Farmland or the Cash Rental Rate?. Land Economics, 91(4), 650-663.
Carr, H., & Cowan, D. (2015) The Social Tenant, the Law and the UK's Politics of Austerity.
Cohen, A. J. (2017) On Compromise, Negotiation, and Loss.
Cowan, D. (2011) Housing law and policy. Cambridge University Press.
Crump, L. (2011) Negotiation process and negotiation context. International
Negotiation, 16(2), 197-227.
Deutsch, M., Coleman, P. T., & Marcus, E. C. (Eds.). (2011) The handbook of conflict
resolution: Theory and practice. John Wiley & Sons.
Eason, K. D. (2014) Information technology and organisational change. CRC Press.
Garner, S., & Frith, A. (2010) A practical approach to landlord and tenant. Oxford
University Press.
Garner, S., & Frith, A. (2010) A practical approach to landlord and tenant. Oxford
University Press.
Goldberg, S. B., Sander, F. E., Rogers, N. H., & Cole, S. R. (2014) Dispute resolution:
Negotiation, mediation and other processes. Wolters Kluwer Law & Business.
Hawkins, D. (2015) Landlord Tenant-Eviction. Wisconsin Law Journal.

Negotiate Effectively In Property Transactions 16
Hodgkinson, L. (2008) The Complete Guide to Letting Property: Including Information on
Buy-to-let, HIPs and Tenancy Deposit Schemes. Kogan Page Publishers.
Howells, G., & Weatherill, S. (2017) Consumer protection law. Routledge.
Huerta-Wong, J. E., & Schoech, R. (2010) Experiential learning and learning environments:
The case of active listening skills. Journal of Social Work Education, 46(1), 85-101.
Jackson, D. (2015) Property Services Industry Continuing Professional Development 2015.
The Australian Salesmasters Training Co Pty Ltd. Retrieved from:
file:///C:/Users/Admin/Downloads/Workbook%20(1).pdf [Accessed 18 April 2018].
Jacobs, K. (2008) Contractual welfare ideology and housing management practice: The
deployment of ‘Tenant Incentive Schemes’ in Australia. Urban Policy and Research, 26(4),
467-479.
Kelchner, L. (2017) Top Ten Effective Negotiation Skills. Chron. http://smallbusiness.
chron. com/top-ten-effective-negotiationskills-31534. html.
Levitt, S. D., & Syverson, C. (2008) Market distortions when agents are better informed: The
value of information in real estate transactions. The Review of Economics and
Statistics, 90(4), 599-611.
Lewicki, R. J., Saunders, D. M., Minton, J. W., Roy, J., & Lewicki, N. (2011) Essentials of
negotiation. Boston, MA: McGraw-Hill/Irwin.
Lindsey, L. A. (2010) Protecting the Good-Faith Tenant: Enforcing Retaliatory Eviction
Laws by Broadening the Residential Tenant's Options in Summary Eviction Courts. Okla. L.
Rev., 63, 101.
Ramsbotham, O., Miall, H., & Woodhouse, T. (2011) Contemporary conflict resolution.
Polity.

Negotiate Effectively In Property Transactions 17
Training, M. T. D. (2012) Effective communication skills. Bookboon.