Real Estate Agency Ethics and Law

The assignment analyzes a situation where a real estate agent breaches trust and violates legal regulations outlined in the Management of Trust Money Act, 2004. It discusses the consequences for both the agent and the company, emphasizing the importance of ethical conduct and adherence to legal frameworks within the real estate industry.

AGENCY PRACTICE Task 4

Table of Contents
CASE 1............................................................................................................................................1
CASE 2, 3, 4....................................................................................................................................2
CASE 5, 6, 7, 8, 9, 10......................................................................................................................3
CASE 11..........................................................................................................................................7
CASE 12..........................................................................................................................................9
CASE 13........................................................................................................................................10
REFERENCES..............................................................................................................................11

CASE 1
(a) In this case having some issues and problems those are explained under the below:
 Stephanie and Ben is the couple that wants to sell their house because that house is too
big. Its not handle by them so Daniel is the real estate dealer. That couple does not want
to sell to the dealer only for they were spend some memorable days.. Dealer's behaviour
and way of talking is not that much good and not gave proper satisfaction to them
(Archer and Syratt, 2012).
 Daniel's is an real estate agent of the company. Its working on selling and buying
properties at effective pricing. That couple not positively affect by the dealer so dose not
think they will be list their property in Daniel's agency.
 During the meeting of Stephanie and Daniel regarding selling the property as well as
visiting the house so that time dealer is not effectively communicated with them so there
is including some issues and problems such as:
a) Not properly communicate with couple.
b) Lack of understanding and emotions/ feeling of them.
c) Deficiency of proper satisfaction.
d) Dealer through not providing any support and fully information.
 Yes, Daniel's behaviours were unethical and not proper communication with couple. So
they could not fully satisfied. Because it is require any employees of the company should
talking in the systematic manner and providing proper information to party. But in this
case dealer's behaviour is not good so in which couple will not sell the house by
involving this agent (Barbee and et.al, 2011).
(b) In which Stephanie and Ben through approach the Daniel's agency for sell the house just
because some reasons. By the dealer should properly communicate with them while meeting. So
they can get proper satisfaction and information. In the meeting should discuss the needs of
clients and dealer so they can understand to each others in the systematic manner. Couple is not
able to take care of house so that's why through the dealer should discus about the client profit so
they can attract towards their plan and if dealer through did not discuss about their profit so
couple may be to approach new dealer. To make effective and healthy relationship with clients
and dealers so have to understand customers feelings and according to that communicate with
them and try to give fully satisfaction.
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(c) In this case couple sell their house so they were approach an dealer but through the dealer did
not communicate effectively with them. So there may be develop various kind of risk those
impacting on the client relationship. For manage and control the risk should prepare an effective
risk management plan that help to define risk and their factors. In which including mainly three
risk those are under the below:
 Chances of Fraud: In which may be occur chances of fraud by the dealer with clients.
Because dealer's way of talking is not that much effective. Its impacting on client
relationship.
 Illegal Registration: Couple wants to sell the house but during this process may be done
fake registration by the dealer. So in which client insecure feel while visiting the house
by the Daniel's (Caldwell, 2012).
 Miscommunication: Communication play an vital role in all sectors and any kind of
situation but in this case dealer and seller were not effectively communicated with each
other so there is having lack of understanding between them.
All risks having their different level should systematically try to resolve them by using methods
and techniques. Its help to take better and effective decision. To manage and control the risk so
there is using some effective strategies and methods those help to find out better solution. Risk
treatment strategies help to set risk according to their level and on that basis treat them. To asses
the risk matrix is the best method. Before implementation the risk strategies should properly
asses the risk and identify them after that take corrective action. Then should set the time
schedule and monitoring process without planning cannot complete any work effectively and
efficiently.
CASE 2, 3, 4
 In the second case having the main risk is owner of the building may be breach their
words or agreement. In which analyse after visit the flat because owner said that will
responsible for electricity so its their responsibility to repair that. Also in this case having
fraudulent chances by the owner to cover or control the risk should complete the
registration with proper hand written information. In which involve many more risks
those may be affecting in the negative manner. According to the Owner Corporation Act
2006, owner of the build is responsible for everything in which that legally liable to
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repair all things relating to that but after made the contract of rent then owner will not
liable to repair any thing. After legal agreement tenant has not any rights to sue case
against landlord (Pickering, 2010).
 In the third case, having risk for seller it may be possible that property will not sell in the
future. Because that property is very high profile so in the market not available that much
competitors its hard to sell by the vendor. Seller having much more expectations those
unrealistic in the nature. To control these risk in the systematic manner so firstly should
set all risk according to their priorities and properly analyse them. To minimize the risk
the seller can be use various kind of promotional activities such as ads in the newspaper,
pamphlets and so more. There promotional activities are help to promote selling offer to
all persons so they will know about that. In this situation vendor is not legally liable to
sell their property because both parties not having any legal agreements.
 In the fourth case, a lady want to sell their property, she's anxious to sell the property
quickly so in which having chances of risk may be happen by the nephew done any
fraudulent activity with her, like that will be working for earn high number of profit. One
more risk will may be happen for her such as when she wants to sell their property
quickly so in this situation their property may be sell at lower price. To cover their risk
so have to properly understand and prepare the written documents with property dealer.
Its a safety key for her and less chances of risk. While selling the property by the dealer
so that is legally liable to follow rules and regulation those are regulated by Australia's
government. Dealer's dose not having any legal right to do any fraudulent activity and
does not having any legal right to use their documents for another illegal work (Ritchie
and et.al, 2013).
CASE 5, 6, 7, 8, 9, 10
 In fifth case, the Sonia have to give the rent to the owner . By the her did not give rent on
time.. But from last 2 months rent pay on the time to owner. But due to have bank issues
she does not be able to pay rent as soon as possible in the effective manner.
 In this conflict there are two person one is Sonia and second is house owner. The owner
need the rent of house on time that is not given by Sonia this in making the problem in
for them. There are need of the money for owner. So he will make the communication
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with here this can make the deference between them because the the culture are different.
The owner can make the agreement with the Sonia that he will give next rent on time. But
communication should be in effective manner because this will help in finding solution
of the issue (Spaargaren, 2011).
 Both of them have to sit together and they have to communicate on problem. They can
make decisions like making the agreement that will solve there problem. If she is not able
to solve here problem then she will give 10% of rent more.
 The house owner have to do the effective communication with Sonia. They can make the
discussion and make agreement that 'she will give rent on decided date”. If she not able
to pay then she have to give 10% more in the rent.
 In the 6th case, A lady has broken the glass by throwing some thing on that. That time she
sad that she will make it fix. But now she in not making performing her promise so the
owner of the property have to dial with the here so she have to fix the glass.
 The lady how have brake the glass the second person is owner and third person is the
victim how have see the lady how has broken the glass. This will make the loss for the
property owner. All parties having different culture and belong to different society so in
the communication the conflict can come. The victim have to be taken some agreement
with the lady abut re-paring at the time of broken. The communication having the barriers
between the lady and victim. So they have to sit together and communicate on that issue.
 Three of them have to set together and do the discussion in that they can make
agreement with that lady that she will make work on that glass or she will pay some
amount for preparing (Stevens, 2013)
 There are three parties they have to make proper communication. But they can set
together. That will help in forcing the lady to pay the money for re-paring the glass.
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 In the 7th case, Blinda has deal with the agency for sealing property but property dealer
are not making effective effort to sale that property. So the karen gets angry on that and
scold the agent.
 Their are two person how are main one is the Blinda second is agency they have to give
efforts so that she will able to sale the property in the market. The agent is not performing
well. This will make the problem for the Blinda. Their are different culture in the agency
that have to be improved. They have done agreement with the agency this have to fill
filed properly. The blinda should do the effective communication with agent so that he
will perform effectively.
 The blinda have to show the agreement and show the detail of last sale of property which
is on same road. Giving the threat to the agent about Champlain of the agent and tall him
for providing the effective money for that property. They have to do effective
advertisement of that place.
 The communication have to done on the agreement which have been prepare at the time
of purchasing. That time agreement have been prepare according to the condition of
house.
 In the 8th case, Luis have the problem of light in there balcony and he having the problem
in the bathroom of leakage. But agent of that building is saying that at the time of
purchasing there was no problem. This problem has come in three months only. So the
responsibility have to be taken to Luis (Sullivan,Williams and Jeffares, 2012).
 The Luis have to do communication with the agent who have sale that property. In this
the money have to be needed for repairing so the issue is who will give that money. But
they both having different culture and different society so they will react according to
that . This will make the bad relation between them. They have to do make agreement
with the agent at the time of purchasing. The communication have to be done effective
with them this will make some solution.
 They have to make to make the effective dealing with each other so this will help in
making good solution. This have to be done by the effective communication. They will
deicide who will give the money for re-paring.
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 The agent and Luis have to make the effective communication. They have to analysis the
agreement that have been done while purchasing the house. They have to make decision
that they will give the 50-50% found in making the repair.
 In the 9th case, by the two parties made an legal agreement so in which both are legally
liable to follow rules and regulations. So which shelving is the main issue because when
shelving duration is long so in which high chances of risk and losses.
 To manage and control the all over the issues so there is use an effective method, in
which parties may be create conflicts because one party wants to remove shelving but It
may be possible another party will not agree. Through the both parties should give
emotional responses to each other so they can easy to understand their views and things
so they can working on that effectively. During the settlement of property so have to
define social and cultural ethics and norms that have to follow by them. Legal
requirements refers to explain legal rules and regulation those are help to make
agreement under the legal term. Its help to make control on the agreement provide safety
and security because in which both parties having some legal rights. During the
settlement of property and remove shelving so have to communicate with together its
help to provide proper information and remove barriers from both parties. Its develop
understanding between them.
 To remove conflicts from both parties so having to proper information and should
understand both parties emotions. In this case one party wants to reduce shelving so there
is should communicate by them after that make an legal agreement so they having an
legal written document with rights.
 To manage and control the issues/conflicts in this case have to prepare an effective
monitoring plan. Firstly should identify the issues and conflicts reasons, analysis them
and choose method to resolve them after that taking corrective action its help to maintain
the relationship both parties.
 In the 10th case, the one main issue is Sharn's having some struggles with writing the
English so that's why he is always talking on phone for any requesting and works And
second one issue is through the landlord dose not attend the phone call and not
responding to the tenant
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 To manage and control the risk and issues so there is using an effective method that help
to resolve them in the systematic manner. Through the tenant should improve English
language and should all information in the written formate. Landlord of the property
should understand the problems and issues of the tenant its help to develop understanding
level between them. Social and cultural differences are also should interpret and
according to them living in the society. Legal requirements help to provide legal safety
and security in this case tenant having an legal right to sue case against landlord. Because
through the owner of the property cannot reposed anything to tenant its misbehaving for
Sharn's. In this case having communication barrier with both parties like tenant does not
know that much English language and through the landlord does not responding to
them .so in which having lack of communication.
 Recommendation action in this case is should make better communication with both
parties and should make an effective relationship so landlord understand tenant problems
and issues.
 To resolve the problems and issues so there should made an effective monitoring plan
that help to take corrective action and provide better solution to resolve problems.CASE
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 Agent purchasing property related to the estate agent act 1980 amended by the
government for the protection of seller from estate agent. It means according to
this act under section 55 property agents does not have the authority to acquire
any benefit from the property that they have been commissioned to trade.
According to this act if an agent tries to gain profit then it is consider as a offence.
The main reason behind enactment of this act is to create a fair and honest
transaction in between seller and buyers without any extra and unused benefits.
 The major requirement of estate agent 1980 is that there must be absence of any
hidden benefits which was not known by both the party coming in the contract. In
fact this act need to occur in the presence of contractor parties for the fulfilment
of the legal requirements. Apart from this, seller and buyer as well as agent must
need to covers all the terms and conditions enacted by the government or law and
order. On the other hand, some of the penalties which was suffered by the estate
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agent in case of any mistake and offence for example imprisonment for two years
or 240 units as a penalty or either both.
 Yes , requirement of this cited section is appropriately applied on the Rita's
situation because she act as a agent in between his brother and his friend Rashid.
Therefore under section 55 estate agent 1980 is very much applicable on this case.
In other words in this case Rita act as a mediator in between his brother and his
friend in selling the property so she is the agent in between both the parties. That's
why requirements of section 55 is effective and fulfilled by the cited situation.
 Yes, there is a exemptions in the section requirements due to their broad concept
as well as complex nature.
Here is the some of exemptions under section 55
 Written agreement is very much indispensable so that vendor get updated about this,
 Fair and honest behaviour is very much important while performing the transactions.
 Absence of commission.
There is many more restrictions while breach of the section.
 Imprisonment for two years in case of any default and fraud.
 Pay some amount of money in case of misrepresentation's and faults.
 Rita must fulfil all the necessary terms and conditions while creating a contract in
between both the parties. In fact all the rules and regulations must be consider while
making a agreement to avoid any mistakes and errors as well fraud lent activities. Apart
from this she needs to throw some lights on every indispensable terms enacted by the
laws and order as well as advisory bodies.
CASE 12
 Under the section 109 of transfer of properties act 1872 landlord have breached
the contract which was occurred in between him and property manager. Basically
this section protect the interest of the lessee with their positivity. Apart from this
they need to fulfil all the terms and conditions which covered under this act as
well applicable on the given scenario.
 He enter into the property due to the fulfilment of requirement of his lessee as
well as he needs to consider all the legal requirements. Landlord comes under the
property because of the demand of lessee.
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Various inspection is done by the landlord for example
 Free from any damages.
 Protect against any exploitation.
 Free from any fraudulent activities.
 Proper communication with tenant and owner
 Follow legal rules and regulations
 Make proper understanding between both parties
 All the legal terms and conditions must be consider while entering into the
contract which was enacted by the advisory bodies for the protection of both the
parties. If they dose not having proper information related to the contract so there
will be occur various kind of conflicts and lack of understanding.No , tenant does
not have any right to refuse the entry because they are not owner of the property,
they paid rent for this. Through the tenant take the property only for decided time
period. For that selected time tenant liable to pay rent to the owner of property. In
which renter does not having any legal right to refuse entry and sue any case
against the owner.
CASE 13
(a) In this case Caroline is an agent of SLS Real Estate company. In which through the agent of
the company did not follow legal rules and regulations. Management of trust money Act, 2004.
according to this contract should legally manage and follow rules related to the agreement. If
does not follow so that party legally liable to face problems and pay money if it is necessary.
(b) In which breached the Management of trust money Act, 2004 breached by the agent of the
company. In which also break the trust of Elena.
(c) Caroline were should follow the legal rules and regulations because its help to make
understanding level an trust between both parties. In this case real estate company is not liable to
pay only agent of the comapny liable because agent through done mistakes.
(d) Through the agent of the real estate company does not follow ethics and norms.. By which
Elena having right to sue case against her. Ethics and norms are help to make better relationship
and develop understanding level between both parties.
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REFERENCES
Books and journals
Archer, J. and Syratt, G., 2012. Manual of travel agency practice Routledge.
Barbee, A.P., and et.al 2011. Successful adoption and implementation of a comprehensive
casework practice model in a public child welfare agency Application of the Getting to
Outcomes (GTO) model. Children and Youth Services Review 33(5) pp 622-633.
Caldwell, R., 2012. Reclaiming agency, recovering change? An exploration of the practice
theory of Theodore Schatzki. Journal for the Theory of Social Behaviour 42(3) pp 283-
303.
Pickering, A., 2010. The mangle of practice: Time, agency, and science. University of Chicago
Press.
Ritchie, J., and et.al 2013. Qualitative research practice: A guide for social science students and
researchers Sage.
Spaargaren, G., 2011. Theories of practices: Agency, technology, and culture Exploring the
relevance of practice theories for the governance of sustainable consumption practices
in the new world-order. Global Environmental Change, 21(3) pp 813-822.
Stevens, E., 2013. Safeguarding vulnerable adults: exploring the challenges to best practice
across multi-agency settings. The Journal of Adult Protection 15(2) pp 85-95.
Sullivan, H., Williams, P. and Jeffares, S., 2012. Leadership for collaboration: situated agency
in practice. Public Management Review, 14(1) pp 41-66.
Online:
12 Best Business Practices for PR Agency Success.2014.[Online]. Available
through:<https://www.iliyanastareva.com/blog/best-business-practices-for-pr-agency-
success>. {Asscessed on 6th June 2017}
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