Prepare for Professional Practice in Real Estate - NSW CPPREP4001

NSW - CPPREP4001
Prepare for
professional practice in
real estate

INTRODUCTION
TASK
Estate agency functions and business structure
What are the main services offered as part of real estate agency activities?
All the real state agency services mainly provides all the purchase, sales rental, lease and
all the other appraisal related to the real property from managing the compensation as in relation
to buyer, seller, lessor and also with broker.
What are the various parties to these services you have described above? Eg one of the parties to
leasing is a landlord.
The parties in the real estate agency in Australia are mainly being called in respect to all
the real estate transactions which are like the lender, purchaser, seller, borrower and many more.
The clients under the real estate agency are mainly referred to be as principal.
For the above, who is the party that the agent has the fiduciary relationship with?
The agent will merely have the fiduciary relation with their principal and that can be a
client or even a solicitor through which the agency relationship is managed. As the agent always
have the best interest with the principal and their will be relied to manage all the best interest
duties that the agent will have to do with the principal.
What are the various options for business structure for an agency?
The most common business structure for all the agency in Australia are mainly the Sole
trader, Partnership, Trust and Company. In which the sole traders are mainly all such business
practises which are being managed by the single individual. Partners are generally when the two
or more individuals manage and maintain all their work together. Company is a separate legal
entity which perpetuates to have the legal succession. Lastly the trust are accompanied through
the non- profit organisation handled by the trustees.

Legislation and Regulatory authority
What is the main legislation that agents operate under in NSW?
The legislation is generally a law which is being enacted through the legislature as being
given in parliament. Their are generally so many laws which are being given in all the real estate
practise. The Real Property Regulation 2019 and the The property, Stock and Business Agents
Act 2002 is an important primary legislation which helps in managing the conducts for the agents
as the primary legislation.
What is the name of the regulatory body for property services in NSW?
NSW Fair Trading is mainly the competent regulatory body which manage all the lows
and the high transaction through which the effective complexity is managed.
Describe the role this body plays in regulating the property industry.
The NSW Fair Trading manages and promotes all the fair market place and it also helps
in maintaining all the compliance as in relation to all the regulatory requirements through which
the trading and the other fair market management can be led out. Their main aim is to safeguard
and manage the rights of the consumers through investigation and other breaches.
Industry associations
Describe 2 (two) different industry bodies or associations or bodies relevant to the real estate
industry and what role they play in the real estate industry.
Their are mainly 160 business associations. The two different industry are Real estate
Institute of Australia research which plays an important role in the well informed advice to the
federal government, professional members in real estate sector, opposition, media and general
public on ma y issues which may affect the market of property and Real Estate Institute of New
south Wales manages all the property related issues and also the property related matters through
which the regulatory management and through all the education standard are attained.
Agent Rules of Conduct
What is the aim of the agent Rules of Conduct?
It aims to manage and promote all the ethical practises and also the high standard values.
It focus on making the members of the REI and the Employees to manage and deal with all the
clients, real estate professional, consumers with fair and ethical manner.