CPPREP4001 Report: Real Estate Industry, Legislation, and Agencies

This report, prepared for the CPPREP4001 module, provides a comprehensive overview of the real estate industry. It begins by examining various business ownership options, the services offered by real estate agencies, and the typical organizational structures, including the roles and responsibilities of different staff members. The report then delves into the agency-principal relationship and identifies the parties involved in different real estate transactions, along with the agency's obligations regarding commissions and license lending. It also addresses the repercussions for unlicensed agents and agencies. Furthermore, the report provides detailed information on key agencies and industry bodies such as Consumer Affairs, Civil and Administrative Tribunal, Estate Agent’s Council, Residential Tenancies Bond Authority, and the Real Estate Institute of Australia (REIA), including their legislative powers. Finally, it identifies the legislation regulating the real estate industry and outlines the licensing and eligibility requirements for various staff roles within the industry. The report is a valuable resource for understanding the legal and operational aspects of the real estate sector.

CPPREP4001 - Prepare for professional practice in real estate (Release 1)
Assessment Questions
RTO 32426

Work in the Real Estate Industry Report
What you need to do:
 For this assessment task you will undertake research and report on various aspects of working in the real
estate industry.
What you will need:
 Research materials such as your learners guide, books, internet, magazines, etc.
 Access to legislative and regulatory documentation
What you need to submit:
 Your answers to these questions.
Instructions
You will need to research information about real estate agencies to assist with your responses for this task.
You should use a variety of sources to gather information including training resources, workplace policies
and procedures (if you are able to access these) and government and industry bodies.
You are required to provide information about the below questions. You must prepare a written response to
each point, which can be supported by example documentation as required. Ensure material is referenced
appropriately.

1. Real estate agency structure and personnel
You must address legislative liabilities and responsibilities (refer to appropriate sections of the relevant Act
for your state or territory) to answer the following;
1.1 Identify the various business ownership options
The various business ownership options include sole traders, partnerships, company and trust. Sole traders
operate and manage any aspects of their business, although they may have employees. On the other hand,
partnerships are formal voluntary businesses wherein two or more parties come together to share the risks
as well as profits of a particular business (Haynes, Nunnington and Eccles, 2017). Companies are
viewed as independent government bodies in Australia under the Corporations Act. It can be owned and
operated by only one shareholder and a director. Lastly, a trust is a business wherein a trustee runs a
business for the benefit of a family and distributes the profits earned to the it.
1.2 Identify the services offered by real estate agencies
A wide range of services are offered by real state agencies, that include residential sales, commercial
sales, business sales, negotiation process, inspection of properties that are marked for sale, organisation
and presentation of contracts. Besides these, they also offer property management services that include
source as well as obtain new rental listings, leasing property, overseeing the maintenance of the properties,
appraisal of rental properties etc. There are different agents who are responsible for providing different
services. For example, a business agent sells, buys and deals with disposing of a business, shares and
interests as well as negotiates for its sale.
1.3 Provide an outline of a typical organisational structure for a real estate agency.
A real estate agency can either have an independent organisational structure or be a franchise. Independent
real estate agencies are companies that operate solely and without a network of many firms. They control
all aspects of various business functions like marketing, accounting, schedules etc. Benefits of an
independent agency include having complete control over the business operations, flexibility while
making decisions, no ongoing costs for a franchise etc. But there is also less structure in training as well as
operations support and availability of limited resources (Jiménez-Pacheco, 2018). On the other hand, a
franchise is an agreement between two parties and have a greater brand name recognition along with
support for training, marketing and advertising.
1.4 Provide an overview of agency staff roles and responsibilities including administration, agents and
agent’s representatives and management.
There are different staff roles in an agency who have different responsibilities, for example, a real estate

agent is a person who carries out the function of an auctioneer of land. They act as agents for different real
estate transactions, introducing a prospective purchaser of a land to another agent and collecting rents
payable. On the other hand, a stock and station agent is a person who serves as an auctioneer of rural lands
and livestock. Their role involves negotiating with a view to induce any person to enter into a contract
related to livestock transaction. The administration staff is responsible for supporting the property
managers as well as the sales people.
1.5 Identify and explain the agency-principal relationship.
It is referred to as an arrangement wherein one of the two entities legally appoints the other entity to act on
its behalf. In an agency-principal relationship, he agent basically acts on the behalf of the principal
(Klamer, Bakker and Gruis, 2018). There should be no conflict of interest while carrying out the act.
The relationship between the principal as well as the agent is referred to as an “agency’’. The relationship
between the two entities is clearly expressed in a written form of a contract. The principal has control over
the agent and he must consent to all the instructions that are provided by the principal.
1.6 Identify parties to the following real estate transactions;
(a) Contract for Sale of House and Land
(b) General Tenancy Agreement;
(c) Agency Agreement (Appointment of Agent);
a) There have to be at least two parties involved in a contract for sale of house and land, i.e., buyer and a
seller. The buyer will buy the land while the seller will sell the property.
b) In case of a General Tenancy Agreement, the parties involved will include a tenant as well as an agent.
The agent will set out the terms that will apply to the tenant’s stay in tenancies like houses, townhouses
etc.
c) Parties that will be involved in an agency agreement, will include the principal, agent as well as the
third parties that will deal with the agent directly. The agent, however will act on the behalf of the
principal.
1.7 Explain the agency’s obligations in relationship to sharing their commissions/licence lending as
outlined in the legislation for your state/territory.
There are certain obligations that an agency has to adhere to in relationship to sharing their
commissions/licence lending. It can share the commissions that is earned through the sale of a property
with any person that hold a certificate of licence (Marona and den Beemt-Tjeerdsma, 2018). Whereas,
the agency cannot share the commission or lend its license to anyone who does not have a real estate
certificate. In cases where an agent works as a buyer’s agent, the buyer will have to pay the commission to

the agent for helping them with finding a property. On the other hand, in case of license lending, the
holder of a licence or certificate of registration must not lend the same to any other person or even permit
them to use either of the certificates.
1.8 What are the repercussions for agents/agencies performing real estate activities whilst being
unlicensed? Refer to the relevant section(s) of the legislation in your answer.
If an agent or an agency performs real estate activities while being unlicensed, they will have to face the
repercussions of the same. These can include paying a heavy penalty. The major aim of a penalty is to
encourage the agents as well as the agencies to comply with the different laws (Mettling and Cusic,
2019). Other actions that can be taken include imposing the person or the agency from performing certain
functions as performing real estate activities while being unlicensed is considered to be against the law in
Australia.
2. Key Agencies and Industry Bodies.
Provide a detailed overview of the following agencies (refer to your own state or territory where required),
including any legislative powers they have.
 Consumer affairs/fair trading
The Office of Fair Trading is an agency that controls the agents which is dictated by The Property and
Stock Agents Act 2002. The different roles of this agency include licensing and registration, promoting
community awareness of real estate services and investigating complaints that are made by the public. The
agency also helps in resolving the disputes as well as improving the delivery of services related to real
estates. The Office of Fair Trading also administers The Fair-Trading Act that can affect the overall
conduct of the real estate agents as well as practice. The agency is basically responsible for protecting the
interests of consumers throughout the United Kingdom. If consumers want to register a complaint
regarding a property, they can do so and receive protection from both the Australian as well as
International Consumer Protection Agencies.
 Civil and Administrative Tribunal
The Civil and Administrative Tribunal is an agency that is established under the Civil and Administrative
Tribunal Act 2013. The agency deals with a diverse range of matters that range from tenancy issues,
building works to decisions regarding guardianship as well as administrative review of government
decisions (Palm and Pauli, 2018). The NSW Civil and Administrative Tribunal or the NCAT is also
responsible for providing services that are appropriate, accessible, effective and economical at the same
time. Civil tribunals are primarily responsible for resolving private disputes and other services provided by
the respective agency include simplified processes, forms and documents in plain and simple language and

various processes to support self-representation by different parties in most matters.
 Estate agent’s council/property board
The Estate Agent’s Council is a council that advises the Minister for Consumer Affairs regarding
operation of the Estate Agents Act 1980 as well as its regulations. It also provides advice regarding the
effectiveness as well as efficiency of the regulation of industry under the respective Act. The council also
looks after the industry developments as well as the services provided by real estate agents (Schonwetter
and Schwartz, 2018). The EAC also undertakes various projects on research but does not play any role
in the administration of Act or its regulations. The major goals of the Estate Agent’s Council include
educating the customers about their rights and responsibilities. Besides this, it also monitors the various
emerging trends and developments.
 Residential tenancies bond authority/board
The Residential Tenancies Bond Authority or RTBA holds all the Victorian residential tenancy bonds
which include those for rented premises, rooming houses, long-term caravans etc. Whenever a rental
agreement ends, the landlords and tenants or the residents have an equal say regarding how the bond
should be paid. The money hat is agreed upon is then released by the Residential Tenancies Bond
authority. The RTBA also deals with the different types of rental agreements and a lease or residency. The
RTBA was earlier known as the Rental Bond Authority and was established in the year 1989.
 Real Estate Institute of Australia (REIA).
The Real Estate Institute of Australia (REIA) is the head body as well as national association for
Australia’s real estate profession. It is an organization that provides well informed advice to the Federal
Government, real estate professionals and conducts research on the various range of issues that affect the
property market (Sharp and Danbury, 2019). The institute has worked towards representing the real
estate sector on a variety of issues since the year 1924. The roles of REIA are performed by the CEO as
well as a management team that is highly experienced with the required knowledge as well as
qualifications and help the institute to put its strategic direction to practice.
3. Legislative requirements
3.1 Identify the legislation that regulates the real estate industry, including property sales and
management.
The Australian Property Legislation is the one that regulates the real estate industry within the country. It
also includes the sales of properties as well as management. It can be defined as the various schemes that
are related to the regulation of property rights. On the other hand, Property and Stock Agents Regulation

2014 as well as Real Property Act are other legislations governing the real estate industry in the country.
The Property and Stock Agents Act covers all the different aspects of the real estate industry that include
rules of conduct, agency agreements, conflicts of interest, availability of sales contract etc.
3.2 What are legislative licensing and eligibility requirements for a) administration staff, b) principal
agents, c) salespeople and d) property managers?
In order to get a job as an administrative staff member, the eligibility requirements include a proven
experience of working as an assistant or in the administration department. The principal agents are
required to have a complete work experience as well as the property that they are trying to sell
(Sundgren, Mäki and Somoza-López, 2018). They also need a certificate IV in real estate in order to
work as a principal agent in the real estate industry. On the other hand, the sales people are required to
have a go getter attitude, work ethics, effective learning skills and interpersonal skills. The eligibility
requirements include having a bachelor’s degree in marketing, business or a related field. As far as
property managers are concerned, they are required to have formal qualifications. This includes an entry-
level certificate course that will provide them with a solid understanding of the real estate industry.
3.3 Name the equal opportunity and anti-discrimination principles and laws applicable to real estate and
explain how they apply to day to day real estate activities.
The Equal Opportunity Law in Australia promotes the right of all real estate agents to equal opportunities,
which means that all people should have an access to equal opportunities regardless of their colour,
religion, age and gender. People working in the real estate industry should have knowledge about these
principles. In Australia, it is not considered lawful to discriminate the people working in the real estate
industry. This also includes employment as well as education and the Australian Human Rights
Commission possesses the power to receive and investigate any complaints regarding the same.
4. Ethical and professional conduct standards (Code of Practice)
4.1 Identify and name the legislation relating to ethics and professional conduct of real estate agents.
Students should demonstrate knowledge of the standards relevant to their state or territory.
The Estate Agents Regulations 2018 outlines the standard of conduct that the agents as well as their
representatives are expected to portray in their day to day dealings with the clients like landlords and
sellers as well as customers like tenants and buyers (Turner and Leavins, 2017). Under this legislation,
the real estate agents must have knowledge about all the relevant laws and should complete all the work
for a client as reasonably as possible. They should be courteous and timely in all of their dealings with the
clients and should never disclose any personal or commercial relationship that they have with the seller to
the client.

4.2 Discuss the objective of the regulations set out the standard of conduct expected of licensees and real
estate salespersons in their day-to-day dealings with clients (sellers and landlords) and consumers
(buyers and tenants).
In their day-to-day dealings with clients, the licensees as well as the real estate salespersons are required to
gain the trust of the clients as well as use their skills in an effective manner. The objective of the various
standards as well as regulations is to ensure that the dealings take place smoothly without any issues. They
are expected to comply with the Code of Conduct in their respective areas of work. The objective is to
encourage the highest possible level of ethics in their day-to-day dealings in order to promote the right to
own, use and transfer real estate property.
4.3 What are the obligations contained in this legislation?
Obligations contained in the Estate Agents Regulations 2018 say that the real estate agents are expected to
know all the relevant laws (Tyson and Griswold, 2019). The legislation also states that the agents
should follow the instructions that are provided by the clients and act in a fair as well as honest manner.
When the agents are acting on behalf of a buyer, they should keep the person who is purchasing the
property informed regarding each stage of the negotiations. Besides this, they are required to advise both
clients as well as consumers about the agency’s complaint as well as dispute resolution.
4.4 Research and examine the foundation for ethical practice applicable to real estate and its relationship
to ethical behaviour.
Ethics are important across all industries and the real estate industry is one of those that encourages the
highest level of ethics in order to promote the right to own, exchange or transfer a real estate property. It is
important for the people operating under the industry to have knowledge about the various ethical
standards and adhere to them. This ensure that all the dealings between the buyers as well as sellers takes
place in an ethical manner. If real estate agents will adhere to the ethics, they will be able to carry out their
respective jobs in an effective manner.
5 Employment Agreements
5.1 Name and explain the types of employment arrangements that are commonly applied in the real
estate industry.
There are various employment arrangements that are applied in the real estate industry commonly.
Employment arrangements can be defined as an employment agreement between the company as well as
the participant, that is maintained by the company (Yoegel, 2017). The National Employment Standards
are the minimum standards that cannot be overridden by the terms of enterprise awards. If a person is not

covered under the agreement, their minimum wages are likely to set by a modern award as It deals with
minimum wage rates, annual and other types of leaves, work hours etc. On the other hand, if an employee
is entitled to receive a bonus or commission, they payment regarding the same should be made to them
within 14 days.
5.2 What is the purpose of the National Employment Standards in reference to employers and employee
rights and responsibilities.
The main purpose of the National Employment Standards is to provide the terms and conditions of
employment. It also sets out the rights as well as responsibilities for the employers as well as the
employees. This is because they have different rights and responsibilities pertaining to their individual
jobs that they are required to adhere to. The various rules and obligations that are outlined by these
standards provide a balanced framework for having productive relations at the workplace (Haynes,
Nunnington and Eccles, 2017). The standards also provide the employees and employers a safety net
that is guaranteed and relevant. The standards have to be complied by all businesses regardless of their
industry. The primary purpose of the standards is to protect all the people working in Australia.
5.3 What are the employer’s responsibilities in regards to employment arrangements in real estate?
The employer has many responsibilities in regards to employment arrangements in real estate like they
should understand the legislation related to employment and the duties of employees towards the same.
One of the major responsibilities of the employers is to ensure work health and safety, any hazards related
to work should be investigated beforehand. Employers are responsible for assess the risks and then
implement appropriate control measures to prevent and minimize the same. The employers must know and
comply with their respective tax obligations and should also cover annual leaves, tax and pay related
issues. It is also important for the employers to pay the right wages to their employees.
5.4 What are the employee responsibilities in regard to employment arrangements in real estate?
Like employees, employers also have certain expectations from their employees, who have many
responsibilities. They should know the conditions for their employment and should comply by the same at
all times. Besides this, they should also comply with the various standards for ethical conduct as well as
professionalism (Jiménez-Pacheco, 2018). They should take care to protect themselves and others who
may be affected by their actions and other risks. It is the responsibility of the employees to report any
hazard or injuries that they notice at the workplace to the employer. Lastly, they should cooperate with
their employer whenever there is a need at the workplace.

6 Communication Strategies
6.1 Identify and detail (3) communication strategies/skills that are required for professional practice in real
estate to build client relationships.
There are various communication strategies as well as skills that are required by professionals to build
client relationships in real estate. Communication strategies can either be verbal, non-verbal or visual and
they allow businesses to build strong and long-lasting relationships with their clients. Verbal strategies can
either be written or oral in the form of emails, texts, video chats, phone calls or chats (Klamer, Bakker
and Gruis, 2018). Verbal strategies allow the employees to connect with the person they are speaking to.
On the other hand, non-verbal strategies include facial expressions, body language etc. They can help in
identifying if the receiver is able to understand the message or not. Visual communication strategies
include signs, illustrations etc. and can draw the attention of the other person.
6.2 Identify and explain communication strategies which can be used to address client complaints.
Communication strategies that can be used to address client complaints include using oral communication
like phone calls and face-to-face conversations. This helps in gaining a better understanding of their
concerns and complaints so that they can be addressed in an effective manner. Written communication
strategies like emails and chats are also options that can be used to address the complaints of clients and
ensure that issues faced by them are resolved as early as possible. As a result, the deal takes off in an
efficient manner.
7 Continuing Professional Development
7.1 Research and explain regulatory requirements for continuing professional development for real
estate personnel.
It is one of the important requirements for real estate personnel to undertake Continuing Professional
Development. The mains of the same are to improve the overall knowledge as well as skills of the agents,
property managers as well as salespeople (Marona and den Beemt-Tjeerdsma, 2018). The regulatory
requirements for the same include encouraging high standards, promoting professionalism etc.
7.2 Identify and record 3 opportunities and priorities for continuing professional development.
Opportunities or priorities for continuing professional development for personnel in real estate industry
can include online communities, face to face workshops and individual reading. These can help people in
the industry to keep developing their existing knowledge and enhance overall professional personality.

REFERENCES
Books & Journals
Haynes, B., Nunnington, N. and Eccles, T., 2017. Corporate real estate asset management:
strategy and implementation. Taylor & Francis.
Jiménez-Pacheco, P., 2018. After planning, the production of radical social space in Barcelona:
Real-estate financial circuit and (de facto) right to the city. Urban Planning. 3(3). pp.83-
104.
Klamer, P., Bakker, C. and Gruis, V., 2018. Complexity in valuation practice: an inquiry into
valuers’ perceptions of task complexity in the Dutch real estate market. Journal of Property
Research. 35(3). pp.209-233.
Marona, B. and den Beemt-Tjeerdsma, V., 2018. Impact of public management approaches on
municipal real estate management in Poland and The Netherlands. Sustainability. 10(11).
p.4291.
Mettling, S. and Cusic, D., 2019. Principles of Real Estate Practice. Performance Programs
Company.
Palm, P. and Pauli, K. S., 2018. Bridging the Gap in real estate education: higher-order learning and
industry incorporation. Journal of Real Estate Practice and Education. 21(1). pp.59-75.
Schonwetter, D. J. and Schwartz, B., 2018. Comparing practice management courses in Canadian
dental schools. Journal of dental education. 82(5). pp.501-509.
Sharp, M. and Danbury, H., 2019. The Management of Failing DipSW Students: Activities and
exercises to prepare practice teachers for work with failing students. Routledge.
Sundgren, S., Mäki, J. and Somoza-López, A., 2018. Analyst coverage, market liquidity and
disclosure quality: a study of fair-value disclosures by European real estate companies under
IAS 40 and IFRS 13. The International Journal of Accounting. 53(1). pp.54-75.
Turner, M. and Leavins, J. R., 2017. Who Is a Real Estate Professional for Tax Purposes? Recent
Developments May Help Clarify. Appraisal Journal. 85(2).
Tyson, E. and Griswold, R. S., 2019. Real estate investing for dummies. John Wiley & Sons.
Yoegel, J. A., 2017. Real Estate License Exams For Dummies, with 4 Practice Tests. John Wiley &
Sons.

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