CPPDSM4080A Assessment: Real Estate Industry Legal and Ethical Aspects

This document provides comprehensive solutions to an assessment covering the core units of the CPP30211 Certificate III and CPP40307 Certificate IV in Property Services (Agency) and the CPPDSM4080A Work in the real estate industry, CPPDSM4008A Identify legal and ethical requirements of property sales, CPPDSM4007A Identify legal and ethical requirements of property management and CPPDSM3019B Communicate with clients as part of agency operations. The assessment includes short answer questions on the roles and responsibilities of key agencies like the ACCC, REINSW, and NSW Fair Trading, different types of tenancies (residential, retail), relevant legislation, and the responsibilities of property managers to landlords and tenants. It addresses scenarios related to landlord access, rent receipts, end-of-month statements, property promotion, and the differences between joint tenants and tenants in common, and Torrens and Strata title properties. The document also explains information contained in a Certificate of Title, encumbrances, and the process of exchanging contracts. This assignment is a valuable resource for students studying real estate, providing detailed answers and insights into the legal and practical aspects of the industry.

CPPDSM4080A Work in the real estate industry
CPPDSM4008A Identify legal and ethical requirements of property sales
CPPDSM4007A Identify legal and ethical requirements of property management
CPPDSM3019B Communicate with clients as part of agency operations
LEARNER DECLARATION Indicate with Y
for Yes or N for
No
I hereby submit these assessment tasks for the units listed above and certify
1. that all work contained therein has been completed by me YES
2. that no part thereof has been completed or copied from any other
person
YES
3. I have referenced and/or acknowledged all necessary authors YES
4. I have kept a copy of my assessments YES
5. I will resubmit at my own cost and time in the event I do not keep a
copy of my assessment
YES
6. I understand that REINSW will provide my employer upon request,
access to my training records and results (where the employer is
funding this learning)
YES
7. I understand that federal and state agencies have the right to access
any of my assessment materials for auditing and monitoring purposes
YES
8. I consent that REINSW may use my de-identified assessment for
internal moderation and validation purposes
YES
9. I understand that if a third party requests my results that REINSW will
only do so with my written permission
YES
Learner Full Name (print)
Unique Student Identifier
Contact Number
Home Address
Learner Signature Date
CERTIFICATE OF REGRISTRATION ASSESSMENT

LEARNER DECLARATION PART 2 Indicate with
Y for Yes or
N for NO
 I have read the Student Handbook YES
 I will keep my documents safe and secure at all times YES
 I will answer all questions using the Learner Guide and/or Information as
referenced. YES
 Where necessary, I have attached supporting documents which are
clearly identified in line with the specific question. YES
 Where required, I have completed any agreements, forms and contracts
required for this assessment. I have done so in FULL and understand
that partial completion will not be accepted.
YES
 I have read, dated and signed the Student Declaration at the front of this
Assessment. YES
 I have retained a copy of my completed Assessment and any written
submissions. YES
8. I will upload the assessment to the portal as instructed. YES
Your Results
1. If your assessment is found to be not competent, you will be provided with clear
feedback on what additional information is required via the student assessment
record form and/or verbally.
2. To check the progress of your assessment, you are welcome to call [phone].
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Assessment Information
Assessment for this unit covers the elements and performance criteria for the unit of
competency:
CPPDSM4080A Work in the real estate industry
CPPDSM4008A Identify legal and ethical requirements of property sales
CPPDSM4007A Identify legal and ethical requirements of property management
CPPDSM3019B Communicate with clients as part of agency operations
These units, form part of the CPP30211 Certificate III in Property Services (Agency) and
CPP40307 Certificate IV in Property Services (Real Estate) under the Australian
Qualification Framework and;
 Licensing under NSW Fair Trading.
Assessment structure
 Part A – Short Answer Questions
 Part B – Extended Answer Questions
 Part C – Workplace Situation Activities
Performance Criteria and Elements
Every assessment for a Unit of Competency within the Australian Quality Framework
(AQF) is structured around Performance Criteria and Elements. To access the
performance criteria and elements go to www.training.gov.au and search for unit code:
REINSW recognises the individual needs of each learner and will provide reasonable
adjustment when required.
To complete this assessment, type your answers where you see the insertion
symbol.
You have limited formatting options.
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PART A – SHORT ANSWER QUESTIONS
For questions in Part A, you will need to provide answers that directly address
the question, you may answer in point form. Ensure that you answer all parts of
the question.
To complete this section, type your answers where you see the insertion symbol.
You have limited formatting options.
Question 1 Research and explain the roles and responsibilities of the following
agencies
1. Australian Competition & Consumer Commission
2. Real Estate Institute of NSW
3. NSW Fair Trading
4. Australian Securities and Investments Commission
5. Tenants NSW
1. This is used to enforce the consumer and the competition act of 2010
and also enforcing a variety of legislations which promotes fair trading
and competition
2. This is used to make sure that the real estate agents are all updated
and they all follow the regulation which are set.
3. They are tasked to promote a neutral market for the consumers and
the traders too, this is done by maximizing the compliance of the traders
to the regulations which are required.
4. They makes sure that the services laws and the finances of the
companies are regulated in order to protect the consumers, creditors
and the investors too.
5. Its core role is to regulate and ensure fair pricing of rental homes and
that the tenants services are catered for
Question 2 In property management, there are a number of different types of
tenancies other than residential tenancy.
1. Give an overview of another type of tenancy
2. Explain the tenancy agreement that would be signed.
1. The residential park which are the properties on the sites for manufacturing are located
and also some residential live as per the agreement with the operator of the park.
2. RLLC Act of 2013
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Question 3 Research the specific legislation that applies to the following types of
tenancies and give an overview of the main legislative requirements of
each; eg: disclosure to tenants, rent increase, term of agreement.
1. Residential Tenancy
2. Retail Tenancy
1. If the landlord wants to increase the rent, their exists a set out
procedure of doing so.
2. This is leased for 25 years and more during which no increase is rent
is applicable.
Question 4  What are the responsibilities of a property manager to the landlord
in relation to maintaining the condition of the property?
 What are the responsibilities of the property manager to the tenant,
whilst the tenant is occupying the property?
1. A property manager finds, screens and manages tenants for the
landlord
2. Property manager handles complains, leasing, evictions,
emergencies and move outs to tenants.
Question 5 Your Landlord contacts you to ask for the phone number of his tenant, as
he is going to install new carpet in the lounge room and needs access for
the tradesman to give a quote. He is very insistent that he must get
access asap.
1. What will you do?
2. What legislative requirements will affect your decision?
1. Inform the tenant that the landlord need access to the premise.
2. RT Act 2010 section 55 and Section 57
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Question 6 Choose one of the Divisions in Part 3: “Rights and obligations of
landlords and tenants” from the Residential Tenancies Act
2010 and summarise what the Division refers to.
Ensure that you include the responsibilities of both the tenant and
landlord.
The landlord must seek consent of the tenant before accessing the
premises which is being occupied by the tenant.
The tenant must not in any way cause noise which will interfere with
the wellbeing of other tenants
Question 7 1. Explain the process and timeframes for terminating a tenant’s
agreement under the following circumstances:
1. Non payment of rent
2. End of the fixed term
2. Explain the tenant’s responsibilities when they need to terminate their
lease during the fixed term of the agreement. (if the break lease clause is
included)
1.
2.
Question 8 1. When must receipts for rent be issued?
2. What specific information must be present on a rent receipt?
1. When payment of rent is made
1. 2. The name of the person which receives the rent
The name of the person who is paying out the rent
Date when payment was made
The amount paid
Premise address
Question 9 1. At the end of the month the agency will disburse funds to their
landlords. What specific income and expenditure would be noted on
the end of month statement?
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1.
2. Explain the process you would undertake on a day to day basis to
ensure all of the information is correct on the end of month statement.
2.
Question 10 1. What are the documents that are needed before an agent can promote
a property for sale?
2. What is the Section and name of the legislation that outlines this
requirement?
1. Contact of agents certificate
2. Section 57
Question 11 1. Explain the key differences between Joint Tenants and Tenants in
Common.
2. Explain the key differences between Torrens Title and Strata Title
property.
1. The difference in the tenants comes when the tenants dies, with the
Joint tenants, the interest od the deceased is transferred to the
surviving tenant but with the tenants in common, there is no rule of
survivorship unless the deceased could have specified so
2. A torren title is where the buyer own the land and the house as a
whole but the strata is where the buyer owns the house only but not
the space since the buyer only purchases a unit of the house or a floor..
Question 12 1. Explain what information is contained in a Certificate of Title.
2. Explain how encumbrances affect the title?
3. Give an example of one type of encumbrance and what effect it
would have.
1. The name of the owner of the property
The type of the property owned
The name of the property owned
The signature of the authority
The date the certificate was issued
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The date certificate was processed
2. The encumbrances affects the title in the following ways:
This restricts the property owner from accessing the property and
allowing the third party to access the property.
3. Judgement Liens : This affects the way the title in such a way that
the owner of the property wont have liberty to the property
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Question 13 A purchaser and a vendor have exchanged contracts with a 5 day cooling
off period, answer the following questions:
1.What is the deposit amount required on exchange of contracts?
2.Where is this money deposited and within what timeframe?
3.At what point are we allowed to disburse the deposit held in the trust
account to the vendor of the property?
4.What document is required prior to disbursement of deposit?
1. Deposit is 10% of the total amount
2. The money will be held by one of the solicitors until full payment is
done
3. the duration of completion is given up to 10 days
4. The schedule 1 document is needed and the contract of sale
document too
Question 14 1. What are the essential elements, as prescribed in legislation, of a valid
agency agreement? (Refer to Property Stock and Business Agents
Regulations 2014 Schedule 7)
1. An agency agreement must conform to the schedule 7 to schedule
14 in accordance with the section 55 of the NSW act .
The core elements includes: Competent parties, Mutual agreement,
Lawful goals, consideration, contract be in writing
2. How would you ensure that you do not lose your entitlement to
commission and/or expenses?
2. This is by ensuring that the agreement is done and prepared
correctly and signed
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Question 15 Explain the features, including advantages and disadvantages of opening
an agency, under the following types of ownership:
 Sole Trader
 Partnership
 Corporation (Company)
1. Advantage; The sole trader agency enjoys the profits alone, the
decision making is also personal and does not need consultation from
any other person.
The disadvantage : The sole trader agency might make wrong
decision which might entirely affect the company and hence
leading to failure, the sole trader agency is disadvantageous
since the loss incurred is not shared and suffers the blow alone.
2. Advantages: The partnership gives the smaller agencies the
chance to collaborate with the IPAA in the NSW hence helping in
the enrichment of the development and progression
opportunities for the staff. With the partnership, it becomes easy
to create connections across the whole public sector.
Disadvantage: With the partnership, it becomes easy for the
rules of the business to be compromised hence compromising
the quality and the business movement too. The profit gained in
the process is divided among the partners and this can also lead
to failure incase conflict arises..
3.
Question 16 If you were looking for information about the supervision requirements of
the licensee in charge of the agency, (as required under the Property
Stock and Business Agents Act), what would you do to find the
information?
1. A helpline number is given out for contact incase you looking for
information about supervision requirements. The number is (02) 9264
2343
2. Explain step by step how you would take to access this information
from the web.
2. In order to get information about this on the website, follow the
following steps:
In the google search engine, enter the “Property, Stock and Business Agents
Act 2002, s 32(4) for NSW fair trading, then the whole clause will appear. All the
guidelines and information regarding the act is given here."
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3. Which Section of the Act relates to supervision requirements?
3. This is section 32 sub section 4 of the property , stock and business
agents acts the year 2002.
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