Property Law and Agency Assessment: Comprehensive Tasks 1 & 2 Analysis

This document presents a detailed solution to a property law and agency assessment. It begins with an assessment table of contents and then addresses multiple-choice and short-answer questions across four key topics. Task 1 covers licensing requirements, including eligibility for different license classes, work experience, and CPD. Topic 2 focuses on rules of conduct, fiduciary obligations, and specific regulations for agents. Topic 3 explores risk management, defining risk within a property agency, agent responsibilities, and components of a risk management plan, along with contingency planning and communication strategies. Finally, Topic 4 addresses marketing strategies and quality control, including how to manage issues that may arise. The assignment draws upon relevant legislation and academic sources to support its responses.

Assessment

Table of Contents
TASK 1............................................................................................................................................1
Q 1.1 ...........................................................................................................................................1
Q 1.2 ...........................................................................................................................................1
Q 1.3 ...........................................................................................................................................1
Q.1.4 ...........................................................................................................................................1
Q 1.5 ...........................................................................................................................................1
Q 1.6 ...........................................................................................................................................1
Q 1.7 ...........................................................................................................................................1
Q 1.8 ...........................................................................................................................................1
Q 1.9 ...........................................................................................................................................1
Q 1.10 .........................................................................................................................................2
Q 1.11 .........................................................................................................................................3
Q 1.12 .........................................................................................................................................3
Q 1.13 .........................................................................................................................................3
Q 1.14 .........................................................................................................................................3
Q 1.15 .........................................................................................................................................3
Q 1.16 .........................................................................................................................................4
Topic 2 : Rules of Conduct..............................................................................................................5
Q 2.1............................................................................................................................................5
Q 2.2............................................................................................................................................5
Q 2.3............................................................................................................................................5
Q 2.4............................................................................................................................................5
Q 2.5............................................................................................................................................6
Q 2.6............................................................................................................................................6
Q 2.7............................................................................................................................................7
Topic 3 : Risk Management – responsibilities of agents.................................................................8
Define ‘risk’ within a property agency.......................................................................................8
Note the scenario you have chosen i.e. A, B, C or D, and explain the specific instances of risk
that may occur in relation to the scenario...................................................................................8

Why is an agent responsible for ensuring the safety and welfare of others and themselves
while carrying out their tasks? For instance, why is the agent legislatively obliged to take
responsibility for others? What is the responsibility of the agent or employer in your scenario?
.....................................................................................................................................................8
Identify components of a risk management plan for the scenario you have chosen...................9
Provide three ways that you could incorporate contingency planning for this scenario into
daily or weekly or monthly or other agency practices................................................................9
Explain the importance of communication strategies in identifying, managing and mitigating
risk in your scenario..................................................................................................................10
Topic 4 : Marketing and Quality Control......................................................................................10
Q 4.1..........................................................................................................................................10
Assume something goes wrong with your marketing strategy. Explain what it is and how you
will manage it............................................................................................................................14
REFERENCES..............................................................................................................................15

TASK 1
Q 1.1
No, Mr Smith who is a real estate agent can not become a strata managing agent if he obtains
the qualification and does the workplace experience.
Q 1.2
Yes, Mr Smith can sell residential property
Q 1.3
Yes, he can also sell rural property over 20 hectares.
Q.1.4
Yes, Mr Smith company need a corporation licence.
Q 1.5
The hierarchy of licence classes, from least experienced to most experienced is
(A) assistant agent, class 2 licence, class 1 licence.
Q 1.6
The minimum length of time required for registration is
(A) for an assistant agent to become a Class 2 agent, 1 year.
Q 1.7
Sales agreement and property management contract can not be signed by assistant agent.
Q 1.8
No, he does not meet with the all criteria for applying for a Class 1 licence under Pathway 3 -
Provisional for former licence holders.
Q 1.9
A) Two task form Part 2 – Sales
 Preparation of the marketing plan. This task will help in taking better decision and
providing accurate guidance for correctly performing activities.
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 Conducting a market campaign in order to increase the sales of property. This type of
activities must consist of conducting open homes or inspections with the accurate and
prospective buyers (Abidoye and Chan, 2018). It is crucial for undertaking the
negotiation with prospective buyers and extracting various offered. Sales person needs to
submit the offers to vendors along with execute agreements and documents with is
according to the requirement of the legislations.
B) Two tasks from Part 2 – Leasing
 This includes that task of performing or conducting marketing campaign for the property.
This type of task includes different activities such as acceptance and checking of
application and providing provision of advice or recommendation to landlord. Apart
form this it includes successful advising or unsuccessful applications.
 Leasing task includes the preparation and execution of Residential Tenancy Agreement
that is completely according to he legislative needs an requirements.
C) two tasks from Part 3 – Property and strata management
 This will includes that task and capabilities of read plans, drawing as well as
specifications for residential buildings (Akinsomi, Mkhabela and Taderera, 2018). It is
crucial that this type of task is correctly and accurately performed with the motive of
correctly managing the property and strata management.
 It is essential to create as well as maintain an accurate asset management plan or system.
As per the plan required task and practices will be performed accordingly.
Q 1.10
What work experience requirements will an applicant for a Class 1 licence have to show?
The work experience that is required by the application for a Class 1 licence includes
(A)Diploma of Property (Agency Management) (CPP51119), or (b) Diploma of Property
Services (Agency Management) (CPP50307).
Q 1.11
How many of the tasks shown in the schedule have to be completed by an applicant for a
Class 2 licence?
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There are different task that is shown in the schedule that have to be completed by an
applicant for a Class 2 licence includes at least 9 tasks listed in Part 1 of Schedule 1, and (b) at
least 5 tasks listed in Part 2 of Schedule 1.
Q 1.12
Which is the only type of licence that does not need CPD?
Assistance Stock and Station agents (Livestock only condition) is the only type of licence
that does not need CPD (Bieda, 2018). There is no requirement for CDP for the person who is
the holder of Assistance Agent in Stock and Station and have condition imposed on their
certificate restriction them in order to act as the agents for the sales of livestock only.
Q 1.13
On what date will the NSW Office of Fair Trading start taking enforcement actions to
ensure that agents are complying with the new regulatory environment?
From the date of 23 March 2020, the NSW office of the Fair Trading start taking
enforcement action in order to ensure the agents are complying with the new regulatory
environment and new regulatory obligation under the Property and Stock agents Act 2020.
Q 1.14
Section 52 of the Property and Stock Agents Act notes a penalty for non-compliance of up to 200
penalty units (Bollinger and Pagliari, 2019). If the value of a penalty unit is defined in Schedule
15 of the Property and Stock Agents Act as being $2,200, what is the maximum fine for breach
of requirements to disclose material facts?
The maximum fine is $ 440000 for the breach of requirement to disclose material facts.
Q 1.15
What is a licensee-in charge?
Licensee in charge can be describe as the individual who is accountable for either to
carries on business under a Class 1 licence or is responsible to be in charge of the business under
the section 31 of the Act. Licensee in charge is a person that is majorly responsible for proper
supervision of the business which they are in charge as well as it is crucial to hold Class 1
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licence in the category with is relevant to the business. For example it is crucial that LIC of the
real estate agency most hold a class 1 real estate agent's licence.
Q 1.16
What is the purpose of the licensee in charge being the only person who can authorise the
release of monies from the trust account?
There is only licensee who is in charge that may authorise the withdrawal of money from
the a trust account. In this agent is not authorise for the withdrawal of money form trust account
unless the agent hold a Class 1 licence (Doan and Nguyen, 2018). The main purpose of the
licensee in charge being only person who can authorise the release of money from the trust
account is to make licensees in charge of the ultimately accountable for any trust money that has
been released form the agency's trust accounts.
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Topic 2 : Rules of Conduct
Q 2.1
a) Be able to access the legislation to find out answers to questions
f) Encourage staff to not operate on myth or outdated rules but to access the legislation and use it
to make suggestions about how the agency operates
g) Use the legislation to inform my behaviours and actions as a property professional
Q 2.2
Fiduciary obligations refer to the legal commitment or duty of a person to act in the best
interest of their respective client (Downs, Sebastian and Woltering, 2017). They exist when the
relationship with the clients involves a particular trust, confidence as well as the fiduciary in
order to exercise expertise. Both responsibilities as well as duties of a fiduciary are legal as well
as ethical.
Q 2.3
The agent who is working for that particular agency should speak regarding the same
with the landlord. The agent should tell the landlord that paying the rental income monthly and
that too when the tenancy starts from will avoid the typical stress on the staff which is usually
caused at the end of month. This will help in clearing out the matter as well as the agency will be
able to continue the practice.
Q 2.4
The reason why licensees as well as the certificate holders are prohibited from receiving
gifts or benefits over a certain amount is S53F of the Property and Stock Agents Act has set up a
prohibition on agents to receive or request gifts for another person or for themselves (Glaeser
and et. al., 2017). This is because the there can be circumstances that can give rise to a conflict
between them. The amount of $60 is the same as the limit of dollar under reforms to laws that
govern agents.
Q 2.5
Rule 22 states that the rental money as well as sales money should be kept in trust
accounts that are separate from each other. This is the responsibility of an agent who is the
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licensee in charge of a business. He should ensure that both rent as well as sales deposits are not
kept in the same account.
Q 2.6
The chosen schedule is Schedule 2, which includes rules that are specific to real estate
agents and assistant real agents. The schedule is comprised of two parts, the first part is related to
real estate and business sales (Gnat, 2019). On the other hand, the second part deals with
property management. The first part is applicable to the real estate agents as well assistant real
agents who are responsible for performing leasing functions as well as sales related to real estate.
The rules that are involved in this particular part include a sales inspection report is required for
all businesses or properties. Besides this, the vendor has to be informed about the offer and so
on. Whereas the second part is applicable to real estate agents as well as real estate agents and is
related to property management. Some examples of the rules that are included in this part are
notifying the tenant about the appointment to sell, maintenance as well as repair of the rental
property, using collection agent to collect rent etc. Two rules of conduct are explained below -
Confirmation of specific instructions – property management services : This rule
states that at the time of or before entering into a particular agency agreement wherein an agent
provides services related to property management in respect of the leasing of a residential
property or a rural land, it is important for the agent to prepare for inclusion in the agency
agreement. Some of the duties of the agent include entering into a residential tenancy agreement
and signing the same. Besides this they also have the duty of undertaking inspections of a
particular property and so on.
Inspection Report : As soon after entering into an agency agreement in respect of the
management of property, an agent must prepare an inspection report and give it to the owner of
the property. The inspection report should include the name of the agent, license number as well
as the business address (Humphreys, Nowak and Zhou, 2019). Apart from this, it should also
include the address of the property, a description about the interior as well as exterior condition
of the property. Lastly, the date on which the report is prepared, the name as well as address of
the owner should also be included in the report.
Q 2.7
Requirement to report suspected theft of livestock
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An agent who suspects that livestock may have been stolen or obtained unlawfully at an
auction for the sale of livestock or at any other time must inform a police officer as soon as
possible about the cause of the suspect ion.
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Topic 3 : Risk Management – responsibilities of agents
Define ‘risk’ within a property agency
Risk within a property agency can be defined as the chance of something happening that
can have an impact on the overall objectives of the business. There can be certain factors that can
affect the ongoing processes within the company (Kumar and et. al., 2019). All property
agencies, both large as well as small are at the risk of getting affected. These risk factors can
either be external to the agency or internal.
Note the scenario you have chosen i.e. A, B, C or D, and explain the specific instances of risk
that may occur in relation to the scenario
In scenario D, Alannah is a business broker who organizes an inspection of the site with
the vendor as well as a potential buyer. Being a business broker, she is keen on avoiding all kinds
of risks. These include any kind of physical danger to the client, vendor as well as herself during
the inspection. Some instances of risk can include exposure to a certain kind of chemical,
explosion or fire. There can also be a risk of injury due to hazards at the inspection site and can
include slips and trips, being hit by moving objects etc. therefore, it is important for Alannah to
take into account the different risks so that their impact can be minimized and the inspection can
be conducted in a smooth manner. Other risks can include heat stress, noise, cold exposure,
electrical hazards etc.
Why is an agent responsible for ensuring the safety and welfare of others and themselves while
carrying out their tasks? For instance, why is the agent legislatively obliged to take
responsibility for others? What is the responsibility of the agent or employer in your
scenario?
An agent is responsible for ensuring the safety as well as welfare of others and
themselves while carrying out their tasks because it is their responsibility. They should cooperate
with employer in regard to safety, health as well as welfare to work. This ensures that the agents
are able to carry out their tasks in an effective manner (Li, Wang and Lin, 2018). The agent is
legislatively obliged to take responsibility for others because they are under an agreement for the
same. In the given scenario, is is the responsibility of Alannah to ensure that the site is safe and
free from any kind of major risks that can prove to be dangerous for the vendor, the buyer as well
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as for her. She should check that the site has proper electricity in order to make sure that there
are no issues during the inspection.
Identify components of a risk management plan for the scenario you have chosen
A risk management plan is an important document that is primarily used by a project
manager in order to forecast risks, estimate their impact as well as define measures to address the
same. There are different components of a risk management plan that are applicable for the
scenario that has been chosen. These include definitions that define the risks as well as rank them
on the basis of priority, like, low, medium, high, very high etc (Monfared and Pavlov, 2019). The
next component is assumptions and they can have a significant impact on the overall analysis of
various risks (Risk Management Plan Components, 2020). Next, there is a list of various
categories of risks. The list is highly specific to the industry that it is being used for. For
instance, in context of the given scenario, the list will include risk categories that are related to
the site that is being inspected. A risk register will also be included and it will contain a list of
the very important risks that can be faced during the site inspection process and how can they be
dealt with.
Provide three ways that you could incorporate contingency planning for this scenario into daily
or weekly or monthly or other agency practices
A contingency plan can be defined as a course of action that is designed to help an
agency or organization to respond to a significant event of the future or a situation that may or
may not occur. The plan is also sometimes referred to as Plan B, which means that it can be used
as an alternative for action. Contingency planning is generally incorporated when a risk presents
itself and its main purpose is to reduce the impact of the risk when it taken place. In case of lack
of contingency planning, the risk can impact the project completely and that too in a negative
manner. In the given scenario, if a risk shows up during the site inspection, the business broker,
Alannah should be prepared with a contingent plan so that the risk can be reduced.
This includes being aware of the surroundings of the site and having the contact details of
service providers or agencies that she thinks would be useful in case of an emergency and help in
reducing the impact of the risk (Ozalp and Akinci, 2017). Another way in which contingency
planning can be incorporated for this project includes that Alannah should hire an investigator
who will carry out a last minute inspection in order to make sure that there are no specific risks
that can affect the overall site inspection process. Lastly, Alannah should have a detailed 3D
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