Assessment: Legal and Ethical Requirements of Property Management

This document presents a completed assessment for the CPPDSM4007A unit, focusing on identifying the legal and ethical requirements of property management in Western Australia. The assignment addresses key areas such as relevant legislation (Residential Tenancies Act 1987), the statutory authority administering the legislation, and the ethical and conduct standards outlined in the Real Estate and Business Agents Sales Representatives Code of Conduct 2016. It covers dispute resolution processes, the handling of rental bonds, and the differences between fixed-term and periodic tenancies. The assessment includes short-answer questions and a case study, requiring the student to calculate commission, identify necessary documentation, and complete industry forms like a condition report and bond lodgment form. The document provides detailed answers and demonstrates an understanding of the practical application of legal and ethical principles in property management, including communication skills, and tenancy agreements.

ASSESSMENT
Identify Legal and Ethical Requirements of Property
Management to Complete Agency Work (CPPDSM4007A)
Student identification(student to complete)
Please complete the fields shaded grey.
Student number 10535326- Sandra Pang
State or Territory Western Australia
Course WA Registration Program - Property Management Stream.
Number of pages
including this one [number]
Assessment result(assessor to complete)
Result — first submission (Details for each activity are shown in the table below)
Not yet competent
Result — resubmission (if applicable)
Competent / Not yet competent
CPPDSM4007A_AS_v1.8 © April 2016 Kaplan Education Pty Limited

Feedback (assessor to complete)
[insert assessor feedback]
19/10/17
Q2a
You need to name both the act and the regulations attached to the act when answering this question.
Further the authority for estate agency practice in Western Australia is a government department.
Refer to your WA links and resources document, section under ‘legislation’ for the name of the Regulations
and section under ‘regulatory authority’, for the full name of the statutory authority
https://www.commerce.wa.gov.au/
Q2b
Governments through legislation attached to the estate agents act and other property management acts
such as the residential tenancies act have created rules of professional conduct for estate agents to abide
by.
For this question, you are required to locate the ethical and conduct standards/rules of conduct applicable
to your State. Where are these rules of conduct located/what is the name of this legislation? Once you have
located these rules of conduct, you will then need to choose 2 of these rules that would affect property
management tasks and explain their application in practical terms. Refer your supporting resources - 'WA
property management' links and resources document - you should find a section on conduct standards and
also refer your regulators website:
http://www.slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_12855_homepage.html
Q4
Under column heading “Statutory authority bond must be paid to and any forms and time frames to pay to
statutory authority” you need to explain the time period for the placement of the bond with the authority.
The last column asks for the process rather than examples why bonds are refunded including the process
for releasing the rental bond, including when the rental bond should be released, any prescribed form/s to
be used and any time frames involved - refer to the authority and their website for additional details:
https://www.commerce.wa.gov.au/consumer-protection/bonds
Q5a
In describing the difference between a fixed term and a periodic tenancy, you need to refer to the start and
finish dates of both lease types. Refer to your learner guide, topic 2, sections under “terms in the tenancy
agreement” the following website for your state and to the RTA website for further reference of both lease
types:
http://www.tenanthelp.com.au/wa
Q6a
 Weekly rent is $400.00
 Agent charges the owner 7.7% commission, on this weekly rent amount
 How much will the agent collect in commission over 1 year.? Calendar monthly rent calculation:
 7.7% of weekly rent [multiply by] 52 weeks
 Remember, GST has already been included in the amount
Case study
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Q2a
You have not explained the complete process as requested
Q2e
You have not identified all of the required documentation that is to be provided to a tenant including at the
start of every tenancy, a publication on the rights of duties of both landlord and tenant. Name that
publication – refer to topic 2 your learner guide for an understanding and for State specific information
refer to the following:
http://www.commerce.wa.gov.au/sites/default/files/atoms/files/lessorsguide.pdf
Q2d
Tenancy agreement – this is not acceptable obtain a copy of an agreement and complete it according to
the act
Condition report - you have not completed the condition report as required - there are no comments
recorded by the landlord /agent as to the condition of the property e.g. 2 sets floor length, cream colored
venetian blinds in lounge room. This needs to be done for every room. Comments should be detailed and
descriptive.
Bond lodgment form - the full trading name (including ‘trading as’ name) and agency number must be
given as part of the documentation. Refer back to case study details in this assignment.
You have placed the landlords address on this form and as this would then be seen by the tenant, it is a
breach of privacy. Provide the correct address for inclusion in the documentation,this should be care of
(c/o) managing agent details. Refer to the case study details for this information.
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Before you begin
Read everything in this document before you start your assessment for this subject.
Instructions for completing and submitting this
assessment
The information and resources that can assist you in answering the questions in this assessment can be
primarily sourced from the learner guide and supporting resources for ‘Identify Legal and Ethical
Requirements of Property Management to Complete Agency Work (CPPDSM4007A)’, located on your
eLearning platform. You may also be required to conduct some independent research.
When completing your assessment:
• ensure you read each question carefully and answer all parts of the question
• type your answer in the space provided
• ensure you respond to the question in full and where necessary the box will expand to accommodate for
your response. The answer box is not indicative of the length of your response
• where relevant, make reference to your state’s specific legislation or requirements
• if submitting additional pages for this assessment, ensure it is clearly labelled with your name,
subject name and question number.
Saving your work
It is your responsibility to save a copy of your work. To do this:
• download this document to your desktop
• type your answers in the spaces provided
• save your work regularly.
Submitting the assessment
• When submitting your assessment, the following applies:
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• Do not remove any sections of the document.
• Do not save your completed assessment as a PDF.
• The assessment must be completed in full before submitting it to Kaplan Professional Education.
Incomplete assessments will be returned to you unmarked.
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CPPDSM4007A_AS_v1.8 Page 4 of 20

The assessment marking process
Once you have submitted your work:
• your assessment will be marked
• your results, including feedback will be provided in this document under ‘Assessment Result’
• your assessment will be returned to you on the eLearning platform for this subject.
‘Not yet competent’ and resubmissions
Should your assessment be marked as ‘not yet competent’ you will be given an additional opportunity
to amend your responses so that you can demonstrate your competency to the required level.
Further resubmissions to this can be requested at a fee.
When resubmitting:
• you must address the assessor’s feedback in your amended responses
• you only need to amend those sections that the assessor has indicated require resubmission
• make changes to your original submission
• use a different text colour for your resubmission. Your assessor will be in a better position to gauge the
quality and nature of your changes.
Units of competency
This assessment is your opportunity to demonstrate your competency in the following unit:
CPPDSM4007A Identify Legal and Ethical Requirements of Property Management to Complete Agency Work
Assessment activities
The activities contained in this document are outlined below.
Part 1: Short answer questions
• This section consists of 7 short-answer questions.
• Question 2, 3, 5, 6 & 7 consist of multiple parts.
Part 2: Case study
• This section consists of 2 questions based on a provided scenario.
• Both questions consist of multiple parts.
• Question 2 (d) requires the completion of 3 industry forms.You can access these forms in the supporting
resources for your state. Where available, also refer to any other handouts/factsheets in your
supporting resources on how to complete the forms.
We are here to help
If you have any questions about this assessment you can email us at [e-mail]. You can
expect an answer from one of our technical advisers or student support staff.
CPPDSM4007A_AS_v1.8 Page 5 of 20

Part 1: Short-answer questions
Question 1
In your own words explain why effective communication skills are so important when managing property
on behalf of landlord clients.
For a successful career in real estate, it is necessary to have effective communication such as authority
documentation, the property leasing process, statutory and agency leasing documents, and some of the
basic procedures which involved in managing leased properties (resolving disputes and managing a key
system).
Example:
The roles as a property manager is to bring in legislative and industry specific knowledge when handling
landlord’s properties and effective communication comes in place as you will need a range of
communication to deal with clients to handle their needs (landlords/clients).
First impression of communication is usually the most crucial part. The success of getting the management
of the client will base on your initial contact as the clients decides whether you have won the clients
business for management of the property. Hence, communication in the initial contact is important.
Question 2
(a) Name the main legislation in your state/territory (state the name of the Act as well as any
Regulations related to this Act where relevant) that covers residential tenancy matters and which
statutory authority administers this legislation.
Note:If you are in the ACT, the body that covers residential tenancy matters and administers this
legislation is a Government body not a Statutory authority.
YOUR STATE The main legislation in your state that covers
residential tenancies
Statutory authority that administers this legislation
Western
Australia
Residential Tenancies Act 1987 (a legislation
that sets out the rights and responsibilities
of tenants and property owners/agents in
WA)
Who covered by RTA:
People with RTA agreement renting private
residences, public housing (Department of
Housing), or community housing in WA are
covered by the Act.
A government authority might have powers
to order the owner to do certain things
which could fix the problem. E.g. Western
Power can order the owner to fix electrical
problems.
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(b) Where within your state’s legislation can you locate the ethical and conduct standards applicable if
you were working in property management? List two (2) of these conduct standards.
Note: Not all states have a separate rules/code of conduct legislation. If this is the case for you,
refer to the main legislation in your state governing agency practice. This legislation will cover an
agent’s responsibility and conduct requirements. Identify two (2) requirements from the agent
legislation in your state that relate to property management.
YOUR STATE Where specifically within your state’s legislation can
you locate information regarding the ethical and
conduct standards in relation to property
management?
Provide two (2) examples of these conduct standards
that are specifically relevant to property
management.
Western
Australia
In WA, the agent rules of conduct are
referred to as a ‘Code of Conduct’ (they
have their own separate legislation)
1. Real Estate and Business Agents
2. Sales Representatives Code of
Conduct 2016
These are the given two requirements of the
task
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Question 3
(a) What is the name of dispute resolution body for residential tenancy disputes in your state?
Tenancy dispute resolution –
The dispute resolution body for tenancies in WA is the Magistrates Court of Western Australia
(b) Name two (2) types of disputes that you may need to use this body to resolve?
Deals with:
- Criminal - offence-based matters
- Civil - claims for debt or damages and non-offence based matters (e.g. extraordinary drivers licence
applications, dividing fences and restraining orders).
Question 4
Explain the process for taking, processing and releasing a rental bond in your state by completing the table
below, including:
• The maximum amount that can be required from a tenant
• Any legislative requirements restricting when the bond can be required from the tenant
• What the managing agent must do with the rental bond upon receiving it, including stating the statutory
authority that the bond must be paid to, any prescribed forms for lodgement and any time frames to do
so.
• The process for releasing the rental bond, including when the rental bond should be released,
any prescribed form/s to be used and any time frames involved.
YOUR
STATE
Maximum amount that
can be required from a
tenant
Any legislative
requirements restricting
when the bond can be
required from the
tenant
Statutory authority bond
must be paid to and any
forms and time frames to
pay to statutory authority
The process for releasing the
rental bond, including when
the rental bond should be
released, any prescribed
form/s to be used and any
time frames involved.
Western
Australia
Not be more than
four times the
weekly rent
Unless weekly rent
is more than $1200
per weekthen the
lessor may charge
a bond higher than
four weeks’ rent.
If the tenant is
permitted to keep
pets capable of
carrying parasites
which can affect
humans, a pet bond
may be charged and
no more than $260.
Landlord/agents
must lodge the
security bond as a
single amount,
specifying the
Any bond paid by the
tenant to the relevant
authority as per the
requirements under
the relevant
legislation as
according to the
state.
It is unlawful for an
agent or landlord to
request a bond from
a tenant and then
retain this bond and
The rental bond remains
at the relevant state
Bond Authority until the
end of the tenancy, after
which it is returned to
the tenant as long as:
All monies owing under
the tenancy are paid in
full, such as rent, water
usage, bank dishonour
fees etc. if applicable.
The property is left in a
clean condition, or at
CPPDSM4007A_AS_v1.8 Page 8 of 20

YOUR
STATE
Maximum amount that
can be required from a
tenant
Any legislative
requirements restricting
when the bond can be
required from the
tenant
Statutory authority bond
must be paid to and any
forms and time frames to
pay to statutory authority
The process for releasing the
rental bond, including when
the rental bond should be
released, any prescribed
form/s to be used and any
time frames involved.
amount taken as pet
bond.
NOTE: A pet bond
cannot be charged
for assistance dogs.
not lodge it with the
appropriate
authority. A
lodgement form is
used to do this
least as per the original
ingoing condition report,
considering fair wear and
tear.
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Question 5
(a) Explain the difference between a fixed term tenancy and a periodic tenancy, and how this impacts on
the potential sale of the rental property.
Fixed term agreement: runs for a set period of time, usually 6-12 months. This can also become a periodic
agreement, for instance you can sign a 12-month agreement with your landlord but remain in the premises
beyond 12 months. Unless a new agreement is signed, the tenancy automatically becomes periodic.
The same rights and responsibility applies; the only different rule applies when it comes to ending your
tenancy.
Having a fixed term agreement will allows the landlord to get harder to evict you however, it will be costly if
you wish to move out before the end of the fixed term. Also, known as breaking your lease.
Periodic agreement (month-to-month basis): runs from week to week or from month to month
Impact on potential sale of the rental property
It is not impossible to sell fixed tenancy term if needs to. It has the potential to knock out some of your
markets in these circumstances, particularly buyers who have sold and need to move into their purchased
property within a standard contract period, for instance 6 weeks. The time-frame they need to wait for
your tenant to move out of the premises may not suit them, therefore they will be less likely to make an
offer.
If your property is a “one-of-a-kind” or a unique property where there is limited amount of comparable
homes/properties on the sale market, buyers will have no problem in making an offer with intension to
purchase and be happy to wait for a fixed tenancy term to be completed i.e. high demand, with little
supply. If there are many similar homes/properties on the market at the same time, then the supply will be
higher where buyers can shop around.
With a periodic term (like a month-to-month basis), you have a much wider choice of potential buyers who
will be attracted to the property and the terms of the contract you can offer with potential for vacant
possession.
(b) Can a rental property be sold during a fixed term tenancy, and if so, on what basis?
A rental can be sold during the fixed term however, the tenant cannot be asked to vacate the property
before the tenancy expiry date. The property may be sold to another investor who automatically takes over
the lessor’s responsibilities upon sale or the house can be sold with vacant possession to occur at the time
the existing fixed term agreement expires.
A reasonable notice must be given, if the premises need to be show to the prospective buyers.
A minimum 30days’ notice using form 1C must be given to the tenant if the property is to be sold with
vacant possession.
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(c) In the event that a rental property is being sold, what is the legislative requirement in your state
regarding providing notice of the sale and gaining access to show the property to prospective
buyers?
Note: WA, VIC & TAS, do not have legislative requirements for providing notice to tenants of the sale
of the property. If you reside in one of these states, please write ‘nil’ in this column.
YOUR STATE Legislative requirement for providing notice to tenant
of sale
Legislative requirement for gaining access to show
new prospective buyers
Western
Australia
Minimum notice requirement for sale is
60days for the below reasons:
- The premises are to be sold or offered for
sale with vacant possession immediately
after the lease ends.
- The premises have been sold and all sale
conditions have been satisfied. If a
property is sold and settled while under
lease, the new buyer must be informed
that the tenants will have occupation of
the property until the end of the notice
period, or until the end of their lease.
The notice to vacate (end the tenancy and
leave the property) must be delivered to the
tenant at the rented premises either by:
- registered post
- electronic communication (such as email),
if the tenant has given consent to receive
notices and other documents this way, or
- hand (giving the notice personally to the
tenant). If the tenant is unavailable, the
landlord can leave the notice with a person
who appears to be aged over 16 and
residing or employed at the tenant's usual
or last known home or business address.
The notice must:
- be addressed to the tenant
- give a specific reason, or state that no
reason is given in the case of a 120-day
notice
- Notice provisions for access to the
property will be needed
- The property manager writes to the
tenant, giving the required notice,
advising that the property is undergoing
property being sales to the market and
home opens will be carried out on their
property on a given time and date.
Note:
Either the Management Agency Agreement
or the Leasing Agency Agreement needs to
have been completed before a real estate
agent commences showing the property or
marketing the property as per your State or
Territory legislation.
It is a breach to commence marketing or
showing the property without the proper
written authority.
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YOUR STATE Legislative requirement for providing notice to tenant
of sale
Legislative requirement for gaining access to show
new prospective buyers
- be signed by the landlord (or their agent)
- allow the correct amount of time to give
the notice
- give the date for the tenant to leave.
The timeframes for serving a notice to
vacate under the Residential Tenancies Act
1997 differ, depending on the reason.
It is against the law to give a tenant a
notice to vacate because they were
exercising their legal rights, or saying they
would do so.
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