Exploring Legal and Ethical Duties in Real Estate Agent Practices

This assignment delves into the legal and ethical responsibilities of real estate agents. It addresses key areas such as discrimination, business ownership structures, licensing requirements, continuing professional development, and common law obligations. The assignment also covers contract law, equal opportunity employment principles, vicarious liability, workplace safety, and the importance of avoiding secret commissions. Furthermore, it differentiates between valuation and appraisal, explores communication barriers, and discusses how to handle customer complaints while adhering to legislation. Foreign investment disclosure and the significance of material facts are also examined. This document provides a comprehensive overview of the essential legal and ethical considerations for real estate agents.

Real State Agent
practice

MAIN BODY
14. Name three possible areas of discrimination/ harassment?
Ans. Sex Discrimination means discriminating on the basis of sex of a particular person. For eg-
discriminating between the pay scale of the male and female workers. Sexual harassment means
harassing on the basis of a person's sexual identity in which asking for sexual favours, physical
victimisation are included. Discrimination on the basis of Age of an individual mostly in cases of
promotions.
15. Briefly describe three areas of discrimination/ harassment. Outline a scenario for each
that could occur in a real estate agency?
Ans. Gender discrimination means discriminating on the basis of the gender of a particular
person. For eg- not performing dealings with the LGBT community. Discrimination on the basis
of disabilities of an individual. For eg- handicaps are being avoided as an employee. Sexual
harassment at workplace, in which the female employees or clients are asked for the various
sexual favours.
17. List three forms of business ownership / structure?
Ans. Business structures – sole trader- in which an individual is working alone and having full
control of the business in their own hands, partnership- there are two or more individual required
to form a partnership, company- company posses its own identity from those who are running it.
It consists of a director and stakeholders.
19. What are the repercussions performing tasks on behalf of the agency and not holding
necessary license or certificate?
Ans. Monetary penalties can be charged by such person by a court, a notice of infringement will
be issued against that person whosoever acts on the behalf of the agency without the license.
21. List two penalties for obtaining licence or registration for real estate for false pretences.
Ans- The defaulter must pay $4000 fine . The defaulter will also be liable for unfit for the
registration I real estate in future. He is also charged for criminal offence under this act. The
agent is also liable for criminal proceedings.
22. What are the requirements to hold a real estate licence?
Ans- The main requirement of licence is that it covers with all financial losses. It also covers for
all the fines that are being imposed on the licensee. All the above given requirements must be
fulfilled in order to hold a real estate licence.

23. Explain regulatory requirements for continuing professional development for
certificate of registration holders.
Ans. There are several regulatory requirements for continuing professional development are as
follows-
1) it is mandatory for all members to undertake the minimum of 20 hours CPD every
calender year from January to December.
2) There must be minimum 10 hours of formal CPD out of the total 20 hours of total CPD.
3) It is mandatory for every employee to maintain a updated understanding of real estate.
4) It is also compulsory for every member to realise and comply with the professional and
ethical regulation during the time period of three year rolling period.
24. There are two common law obligations that are placed on agents when dealing with the
third parties, these are
Ans. The two legal obligations imposed on an agent of real estate regarding the third parties are
as follows-
1) The agent must act in a reasonable and fair manner.
2)The agent must also refrain or avoid himself from doing deception, exaggeration or any
misleading act. It also includes no faulty act done by the agent.
25. What is a common law?
Ans – Common law are those laws that have origin from judicial precedent or custom of the
country. These are those laws that are derived from the decisions of the previous cases of the
court. For instance, the landmark cases of the court are the sources of the common law. These
law has its jurisdiction all over the country and are legally bind able on all the courts of the
country.
26. What is an agent's ethical obligation to the vendor/ landlord under common law?
Ans. There are various ethical duties of agent towards the landlord as discussed below-
1) The agent must follow the relevant and reasonable instructions of his landlord.
2) The agent must act in good faith to the landlord.
3) To act in the best interest in favour of principal.
4) To disclose the materialistic information to the principal.
5) To exercise skill, due diligence on the behalf of landlord.
6) To not leak the confidential information in public that effects the business severally.

7) To show due care to the property of principal.
8) To be faithful towards the principal.
27. what does the term equity means?
Ans. The term equity can be addresses as being fair or just. In legal terms the term has been
defined as the rules which are determined to mitigate the severity of the common law rules and
the concerns which are not covered under the jurisdiction of common law. The equality before
law and justice are the two major principles which govern the legal system of country.
28. what is statute law?
Ans. It is also addressed by the name of legislation. It is a written form of law which is enacted
by the legislature of the country or the statutory body. In australia the concerend are governed by
the British Westminster rules of law.
29. Under contract law what are the six essentials elements to a valid contract for sale? list
and briefly describe these?
Ans. The six major essentials are the -
 offer, which is also proposal comprises of certain pecific terms amde by one party to
other to enter into agreement..
 acceptance,
 consideration,
 legal intention to create relations,
 legality and capacity and
 certainity.
31. what are the three key principles of Equal Opportunity Employment(EOP)?
Ans. The three principles of EOP are-
 all the eligible members of the community must have a fair chance in order to gain the
position,
 the selection of the applicant vis based on their ability to perform the work require by the
position,
 only the best person out of the all must be selected based on their abilities, knowledge
and skills.
32. Explain the responsibility of licensee in charge/ principle?

Ans. The principle or licensee are bound to keep the required records wioth respct to the name as
well as the residential address of all the employees for the periods of three years. The given time
also stands applicable in the case where the person has ceased to be an employee. He alos stands
responsible for the supervision of their own place of business.
33. Define vicarious liability?
Ans. It is referred as an situation where one party is held resonsible for the acts of others. In
simple term sit means that serving in someone or something's stead. Moreoevr the lawe also
specifies that the licensee stands responsible for anything done or not done by an employee
which lies withing the scope of the employers authority and for the benefit, or the purported
benefit of the licensee or the licensees business.
35. List any four items covered in letter of appointment?
Ans. It comprises of all the rerquired terms and conditions,
 it also entails the employees work task, specified hours of working,
 employees remunerations and additional commissionn structure, if any such as the debit
or credit targets,
 it also specifies the direct supervisor to whom one ios required to report,
 the letter also sets out the employees expected targets and their % of share.
36. Ensuring safety in workplace is whose responsibilty?
Ans. The owners as well as the employers are the ones who holds the most reposnsibilty with
respct to the assurance of proper health and safety in the workplace. They also stands legally
responsible to keep their workers and anyone who might get affected by their bsuiness safe from
harm, including their customers, visitors of the workplace along with the temorary workers as
well.
37. Following safety in the workplace guidelines and protocols is whose responsibility?
Ans. Similar to the above question the business owners and employers of the business are the
one who stands reposnible for following the workplace guidelines as well as protocols.
38. Define secret commission and provide an example of this.
Ans. The term secret commission is defined as the finacial reward or benefit which is acquired
by an agent from any other party other than their concerend principal. An agent must not take a
secret profits or acquire a secret commission as this stands an illegal act and may further subject
to certain severe repercussions as well as the penalties.

40. What is the difference between valuation and appraisal?
Ans. Appraisal is an estimated idea about the current market value of the property and valuation
on the other hand is the actual worth of the property in the market.
41. Explain any three potential barriers to communication?
Ans. Language barrier- communicating with those individuals whose native language is not
English would be a difficult task, Gender Barriers- communication breakage between the
colleagues, Interpersonal barriers- there are people who do not like much to communicate with
others.
42. What do you need to do address the concerns which still abiding by the legislation and
why?
If the neighbour do not want to record their details in the register which is a necessity to
enter in the open house. I will make them aware about the legislation and Section 10 which
shows that, in order to protect the right of other property and your safety measures, we must have
your details. So that, in any case of any misleading practice, I could help you out and I will make
sure that, no information will be shared with third party.
43. What communication skills you need to employ to solve the issue?
When a customer complaints about irrelevant areas and being unreasonable, it is
necessary to have polite communication skill. I should have creative and convincing skills
through which I can give answers to their irrelevant problems. I must regards sincere apology to
maintain customer relationship by reflection apologies in my words.

44.) What steps would you take if a customer approaches you to lodge a complaint?
The steps that I would take when customer approach me to lodge a complaint include
the following.
 Treat them with due respect and gracefully listen to their problem and make important
notes
 Reach the crux of their problem an help calm down their frustration through assurance
 Connect their problems to any possible breach of conduct or illegal practices
described in legal acts (Cai and Chi, 2018).
45.) When and how is a foreign investment disclosed?
Foreign investments are treated differently in the books and accounts and they are
also given preferential treatment by the government as they are the ones which have the first
right upon collection of all data samples which are related to foreign investments reveals and
discloses by NSW houses. Buyers and sellers of real estate will have to give prove about the
nature of their holdings to the government under a separate rulebook brought in July 2016.
46.) Define Material Fact?
Material facts are known and primary facts which are given by the reasonable person to prove
his cause of action. It is considered as the most important factor generally used to decide the
outcome of a case. These facts are relevant in the court of law and sufficient reason to decide
the merit of the case. Any proceedings against a material fact are admissible and genuine in
the eyes of the law (Niemann and Martens, 2018).
47.) List five things are considered material facts and must be disclosed to potential
buyers?
It is the legal obligation of the buyer to be satisfied with the product they buy as it is based on
the principle of Caveat emptor (buyer beware) as it is their duty to reasonably examine the
product while purchasing. Although the seller is under an obligation to disclose certain
material facts to the potential buyers they are:
 Pre- contractual disclosure: According to common law, the seller is responsible tfor
disclosing the defects in the product to potential buyers. The seller has to mention the
defective title, if any, under the contract to avoid any kind of discrepancy in the
future.

 Off the plan: It is the duty of the seller to inform the potential buyer about the changes
happening before selling and after contracting with the parties.
 Accurate sale price: The seller is not allowed to mislead and deceive the potential
buyer and has to inform them about the actual price of the product in order to avoid a
dispute in the future.
 Quality of the Product: The seller has to disclose the quality of the product to the
potential buyer so that there will be consistency and clarity of product remain between
both the buyer and the seller.
 Terms of the Contract: It is the legal obligation n the seller to identify the terms of the
contract entered by the potential buyer with the seller to avoid dispute in the future.
48.) In regards to 'Material Fact' list any two professionals that may provide expert
advice?
The disclosures made by the vendors and the agents are considered as material facts
and are subjects to represent and statements are made in the course of marketing the property.
These professionals complete all the inquiries of the potential buyer and act fairly.
49.) Describe and provide an example of how a business can be an eco -friendly and
sustainable environment?
There are many ways that can make business eco- friendly and sustainable an
environment. The business focuses on avoidance of toxic substances and uses simple ways to
make the environment eco - friendly in order to support the local economy. The business can
be sustainable if it reduces energy consumption and prioritise the process of recycling
(Aluchna, 2018).
50.) How could you find out more information about having a ' cleaner and greener'
workplace'?
A Clean and green workplace promotes a better lifestyle and reputation that is
required to secure health and safety at workplace. An eco- friendly atmosphere motivates the
workforce to achieve organisational goals and ensures a greater chance of long- term success.
It helps businesses to survive in the competitive market and attract new customers to buy
products and services of that business (Sanders and Wood, 2019).

51.) Legislation has been introduced to regulate the use of tenant databases. List (4)
reasons a tenant can be listed on tenancy database
Tenant databases are basically used to blacklist potential people who have performed
some kind of misconduct and they are always lethal as it makes one improbable to get proper
rental locations if their name is listed on one. Some reasons a tenant can be listed on such
databases are listed herein.
 Consistently delayed or outstanding rent payment
 Damage done to rental property
 Caused damage to neighbours
 Used property for illegal activities
52.) The key principles of Australian consumer law are to protect consumer rights
when buying goods and engaging services. List (2) examples of these rights.
Under the Australian law, there are various rights listed herein.
 The Australian consumer law gives the people the rights to cancel some services
which either mistreat them or violate their privacy. Faulty services also fall under this
category.
 If the service which was promised was not delivered and there are elements of false
advertising involved, the law also grants the Australian people a right to get their
money refunded (Berkmann, 2021).
53.) Which section of the Australian consumer law deals with false or misleading
representations about the sale of land?
Section 30 of the Australian consumer law deals with the false or misleading sale and
representations regarding land sales and it states that people involved in trade and commerce
of land related transactions cannot indulge in faking third party approvals, manipulate the
person into buying the land and make false information regarding the nature of the land itself
and the current location wherein it is situated (Fernandez, and et.al., 2021).
54.) In your state, whose responsibility is it to view and confirm a vendor/seller's
identity?
The seller is empowered to perform certain responsibilities towards the buyer for the product
is due and till it is not delivered and actually paid to him. Seller’s duties are listed as

identifying customers, maintaining relations with the buyer, negotiating, promoting special
offers and many more.
55.) What is a certificate of title?
Certificate of title is a legal document that is an evidence of individual's ownership vested in
a movable property like car, business and real estate or other. It provides information like
name of the owner, title of the property, information about owner etc. It is an evidence or
proof of ownership of the property.
56.) What are the essential elements to a valid Agency Agreements or Sales Authority?
The essentials of valid Agency Agreements are:
 It must be a document describing terms and condition of the agreement.
 It must be signed.
 It must be in accordance of law.
 Agreement can be expressed and implied.
Thus, the regulation defines the certain terms which are binding upon the parties and are
enforceable.
57.) What is the Act regulates the real estate industry in your state?
Real Estate in England and Wales based on two Acts includes the law Property Act, 1925 and
the Land Registration Act, 2002. These two Acts are major reforms take place in the area of
real estate to make simpler, easier and modernise the registration of movable property. It
governs various legal aspects of real estate law and reforms the execution of formalities for
registration of various deeds.
58.) Provide a description of each given point.
 Acts/ Legislation: Acts defines the policy, principle and develop through legislative
body as they are responsible to make and pass the rules in form of law.
 Regulation Amendment: Amendment simple means to amend or to change
something. In legal terms, Regulation is amended or added as per the need and
requirement of the society. It is a formal change take place in the legal document
through legislature.
 Mandatory Rules & Codes/ Schedule: It is not an important agreement but shows
detail of the document and contains vital information about the Code.

 Appendices: It is an auxiliary document which is generally attached at the end of a
writing.
 Policy & Procedure Manuals: It is a detailed text that defines policies, standards,
norms required to complete and binding upon the employees.
59.) There are 11 elements in the structure of legislation, what are they?
When it comes to the structure of legislation, there are important structures involved
which are 11 in totality. They are listed below.
 Long title
 Short title
 Commencement
 Application
 Contents
 Definitions
 Headings
 Parts
 Divisions and subdivisions
 Clauses and sub clauses
 Schedules and appendices
60.) What steps are taken before amendments to legislation happen?
Amending the legislation is an elaborate process and the steps taken before doing so
are listed herein.
 The bill or the supposed change that is to be brought must be duly discussed and
passed in the parliament with due discussion from both the ruling party and the
opposition
 The ethical considerations of the changes and their validity and necessity must be
judged appropriately
61) List (2) techniques and strategies for tracking legislative amendments.
There are various way to properly identify and track the essential legislative
amendments which happen to have taken place on the respective authoritative body or book
of law. Some techniques are listed herein.

 People can take the help of dedicated agencies which help people identify and study
such amendments
 An effective strategy is also to register through the local consumer affairs body to
receive regular notification and updating regarding old and new amendments
62.) Who is ultimately responsible for ensuring the agency is compliant and how do they
do this?
In making sure that the agency is complaint, the people in charge have to displays
strong procedural knowledge of all legislative processes which is the job of the principal of
the agency in most cases. They make sure that agency follows all legal compliances by
making sure that the agency has proper systems in place which detail all the considerations
required by law so that the people in charge of the agency do not skip any legal process or
notice.
63.) Identify 3 common problems associated with interpreting legislation
There are many common problems which can be encountered during interpretation of
legislation which are listed herein.
 Use of complex jargon and heavy law centric terms which makes it difficult to
ascertain the true meaning behind written texts
 Usage of broad and stretches legal clauses and phrases
 Printing and drafting errors are also fairly common
64.) What is the process of addressing a discrepancy when found?
Whenever there are noticeable discrepancies involved in the actions of the employees
and the required legislative documentations and processes, the agent is required to
immediately intervene in the proceedings and the discrepancy must be duly identified
analysed to classify it under acts such as Breach of Privacy Act and it must be corrected with
swiftness and re-circulated to all parties.
65.) What could be an example of a correction to a discrepancy?
An example which could be used here in legal context is when there is a discrepancy
found between employees and the management regarding breach of their privacy which can
be corrected by making them reply to inter-office memo which mentions the desertion of
sensitive data which is not currently needed.