Report on Real Estate: Structure, Legislation, and Ethics

This report provides a comprehensive overview of the real estate sector, delving into its various facets. It begins by defining real estate and outlining the services offered by agencies, including home buying and selling, property management, and mortgage services. The report then explores the organizational structure of real estate businesses, emphasizing the roles and responsibilities of staff. It highlights the importance of adhering to legislative requirements, including property law and contractual agreements. The report also identifies key agencies and industry bodies, such as consumer affairs and estate agent councils. Furthermore, it examines ethical and professional conduct standards, client service standards, and risk management strategies within the real estate industry. The report also includes an overview of relevant legislation and provides a detailed analysis of penalties for breaching estate agent acts. Overall, the report offers a comprehensive understanding of the real estate landscape.

WORKING IN REAL
ESTATE

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
Task 2.........................................................................................................................................3
Real estate agency structure and personnel............................................................................3
Key agencies and industry bodies..........................................................................................4
Legislative requirements........................................................................................................5
Ethical and professional conduct standards............................................................................6
Client service standards..........................................................................................................6
Risk Management...................................................................................................................7
Questoin 2...............................................................................................................................7
CONCLUSION..........................................................................................................................9
REFERENCES...........................................................................................................................9

INTRODUCTION
Real estate is defined as a sector associated with business environment. The sector
deals in home, houses, offices, apartments and other constructive products. This report will
project about different aspects related to real estate. Structure of real estate agency will be
discussed in this report. Different agencies and industry bodies involve in the sector will also
discuss in this report. Different legislative requirements involve in the market sector will also
discuss in this report. Furthermore, report will provide brief information in respect to ethical
and professional conduct standards. Client service standards will also discuss briefly in this
report. Concepts related ti risk management will also be discussed in this report.
Task 2.
Real estate agency structure and personnel
Real estate is a business sector part of business environment. The sector deals in
constructive assets and properties. The market of real estate is among the fastest growing and
high profits market due to constant hikes in the real estate property prices.
Services offer by real estate business
Following services offer by real estate business owners that can be projected in the
above manners.
Home buying: Real estate services involve home buying. In this service real estate trader
buy properties, home from the sellers and further they the sale the properties at a good price.
This is a key service real estate vendor provide.
Home selling:Home selling is another service real estate traders are engaged in. They sale
the home and properties to all the needy peoples. Home selling is among the primary
products of real estate traders. Thisservice allows them to earnpotential revenue. Home
selling is a huge business and this has provided an immense growth to the sector. The
demands always consisted as high of all different home products in real estate market.

Property management:Property management is also a part of service real estate traders
allocate to all different peoples. This is the service allocated to all those peoples who carry
multiple properties and have no idea how to convert such properties into a profitable
income(Wilkinson and et.al., 2018). In this service real estate vendor give services related to
consultancy about using such properties in generating profits out of the business.
Mortgage services:Mortgage is also a major service real estate trader provide. In this service
on the basis of securing properties owner can take loans. This is an effective service real
estate trader provide. This is a profitable service that allows real estate businessman to earn
potential revenues.
Apart from the above mentioned services real estatebusinessman also
allocatesservices like escrow services and relocation services. All these services can be stated
as different product portfolio of real estate business.
Organisation structure: Real estate business can have a normal business structure. On the
basis of the scale of business real estate company can have a centralised structure or
decentralised structure (Ullah, Sepasgozar Samad and Siddiqui, 2017). On the basis of the
scale of business the structure of organisation gets finalised. Structure plays a crucial role in
managing the entire real estate business. In case the company carry the huge business
operations than decentralised structure would suits because it will allow better management
of company’s operations.
Staff role and responsibilities
Staff role and responsibilities is an important aspect of the real estate business
management. In real estate business company provide different services with the support of
employees. Agent’s also involved in real estate business. All the staffs of company play a
crucial role in managing all different services of company in real estate business.
Legislative liabilities and responsibilities
This is another key aspect involve in business. Real estate business also needs to meet
up all different regulations associated with different laws like property law and other laws. It
becomes important for the company to meet up all requirements of legislations. This allows
company to have smooth business operations.

Key agencies and industry bodies
Real Estate Company needs to cope up with different regulations issued by industry
bodies and other different agencies.
Consumer affairs:Customer affairs deals in the customer rights and other
authority’scustomers are associated with. Customer affairs also listen to all consumer
grievances related to real estate properties (Costa and et.al., 2018). The body serves
customers and buyers of real estate property in order to deal with their problems and issues.
Civil and administrative tribunal:Civil and administration tribunal is a place where all
allegations related to ownership on the property and the certain authority gets to discuss.
Tribunal always established spot that certain issues can be discussed and make a solution out
of it.
Estate agents council / property board:Estate agent council is a board deals in coinciding
related to real estate properties. This is a professional body manage the agents related with
real estate business.
Residential tenancies bond authority/ board:Residential tenancies bong authority is a
process in which bonds are created between tenant and land lord about holding a property.
This is a process operate when property is allotted to certain person for a certain time frame.
Real estate institute of Australia (REAI): This is a national level professional association
for real estate sector in Australia. This is a politically non aligned organisation based in
Australia associated with real estate sector.
Legislative requirements
Legislation plays its own role in every business environment sector. In real estate
business different legislation also play a role in maintaining professional codes and conducts
in the sector. Different legislative requirements like property transfer based on the legal
regulations, contracts establishment between tenant and land lord, mortgage agreements
between parties and many other regulatory requirements also needs to fulfil (Alexeev and
et.al., 2018). Legislation plays a crucial role in order to conduct the business in ethical
manner. This allows parties to maintain the loyalty in every deal. Every time any transaction
related to real estate entertains all contracts established and framed between parties are
established and done based on the legal regulations. Legislation provides benefits to keep the

loyalty in the transaction. Real estate institute of Australia supports all the different legal
regulations to conduct the deal related to real estate.
In Australia different legislations like finance services reforms act, census and statistic
act, copyright act, corporation act, family law act, freedom of information act, fringe benefits
tax act, fringe benefits tax assessments act, managed investment act, native title act and
privacy act are a part of real estate sector. All thislegalisation put an action every time any
deal is entertain between parties involve in real estate transaction.
Ethical and professional conduct standards
Real Estate Institute of Australia projects different professional code of conducts
related to real estate sector of Australia. Estate agnet act 1980 deals with the all kinds of code
of conducts related to real estate agents in Australia (Rogers, 2017). This is a professional
body associated with the estate agent in Australia on a direct basis. Other legislations like sale
of land act 1962 and residential tenancies act 1997 also caters to the real estate agents in
some extent.
The objectives behind the legislations are to manage and monitor the real estate
transactions in Australia. All these legislations play a crucial role in monitoring and control
the real estate market of Australia. The laws able to treat every real estate transaction fairly. It
is important that the customers and sellers get to the proper authority to reserve the individual
rights in every real estate transaction (Miyakoshi and et.al., 2020). Time to time necessary
amendments also conducted in law based on the requirements of market. All these laws
played a crucial role in dealing with all different issues associated with real estate
transactions in Australia efficiently.
Client service standards
There are number of client service standards such as accuracy,transparency,
friendliness, accessibility standards etc. ensures clients that no discrimination and fraud will
be committed while selling or buying property. There are various strategies that supports to
maintain standard of client services such as:
Feedback strategy
It is effective strategy that will support to maintain accessibility and transparency
customer service standards. With this strategy can gather feedbacks from customer regrading

real state services that makes them feel valuable and retains with Real Estate Institute of
Australia projects.
Track performance of customer service representative
It is another strategy that can implement on Real Estate Institute of Australia
projectsto track service representative performance. With this approach real state agency can
maintain accuracy standards effectively.
Risk Management
Identify Risks
There are various common risks such as failing to deliver service, wrongful
discrimination and accidents etc. faces by real estate agencies. For example,failing to deliver
services is the major risk that can take place when client claims that real estate agents take
extra cost for their new homes as result leads negative publicity (Taillandier, Fernandezand
Ndiaye, 2017).Another risk is wrongful discrimination that situation takes place when client
claims that a home was not shown them due to their culture difference or others. To
determine these risks can practice feedback strategy which will support to access them
effectively.
Identify policies to minimize identified risks
Real Estate Regulatory Authority Act has imposed in 2016 by Australian parliament
to protect homebuyers from fraud and omission type risks. If Real Estate of Institute
Australianpractices such policy in it’sbusiness that ensures clients that no wrongful
discrimination takes place here while buying business. Or if anyone i.e. company or client
breaches policy then they have to give penalty to the real estate government under the policy.
Such policy minimizes risks and to monitor this policy effectively agents of real estate review
all policy own and reports to Real Estate of Institute Australian.
Penalties for breaching estate agent’s Act
If real estate representatives’breaches rules and regulation under the real estate agent
act then they have pay penalty in the form of fine.
Questoin 2
The Act for your state or territory:

Obligation Maximum penalty for
breaching your obligation
Section of the Act
You must not act as an estate
agent unless licensed to do
so.
Imprisonment for 12 months
or $22,000 for individual
$ 165220 for corporation
12
You must not act as an
agent's representative unless
you are eligible to be
employed to do so.
$82610 16(2) and 3
You must not permit or assist
a person who is not licensed
to carry on the business of an
estate agent.
$82610, license cancelled
and permanent or temporary
disqualification.
29
You must not publish or
authorise the publication of
an advertisement that is false
or misleading.
$4130.5 42(4)
You must not market a
property for sale at a lower
price than your estimated
selling price (commonly
referred to as underquoting)
$33044 47C(2)
You must not purchase or
indirectly benefit from the
purchase of any real estate or
business you are engaged to
sell.
Imprisonment for 2 years or
$39652.8 or both.
55 (1,2)
The Act for your state or territory:
Obligation Maximum penalty for
breaching your obligation
Section of the Act
You must keep trust money
in a separate and current trust
account at an authorised
$ 4130.5 59 (3)

financial institution.
You must not fraudulently
use trust money or falsify
trust accounts.
Imprisonment for 10 years or
$ 82610 for individual.
$ 165220 for corporation.
91 (1,2)
CONCLUSION
The brief study has been concluded Real estate agency structure and key agencies
associated with real estate. It has been summarized different legislative requirements client
service standards in this report. it has given overview on different strategies to identify and
access risk.

REFERENCES
Books and Journals
Alexeev, A.O. and et.al., 2018, October. Self-adaptive intelligent system for mass evaluation
of real estate market in cities. In The 2018 International Conference on Digital
Science (pp. 81-87). Springer, Cham.
Costa, O. and et.al., 2018. Green label signals in an emerging real estate market. A case study
of Sao Paulo, Brazil. Journal of Cleaner Production. 184. pp.660-670.
Miyakoshi, T. and et.al., 2020. The impact of quantitative easing and carry trade on the real
estate market in Hong Kong. International Review of Economics & Finance.
Rogers, D., 2017. Becoming a super-rich foreign real estate investor: Globalising real estate
data, publications and events. In Cities and the super-rich (pp. 85-104). Palgrave
Macmillan, New York.
Taillandier, F., Fernandez, C. and Ndiaye, A., 2017. Real estate property maintenance
optimization based on multiobjective multidimensional knapsack
problem. Computer‐Aided Civil and Infrastructure Engineering, 32(3), pp.227-251.
Ullah, F., Sepasgozar Samad, M. E. and Siddiqui, S., 2017, December. An investigation of
real estate technology utilization in technologically advanced marketplace. In 9th
International Civil Engineering Congress (ICEC-2017),“Striving Towards Resilient
Built Environment”, December (pp. 22-23).
Wilkinson, S. and et.al., 2018. The Routledge Handbook of Sustainable Real Estate.
Online:
Penalties – Estate agents, 2020. [Online]. Available Through:
<https://www.consumer.vic.gov.au/licensing-and-registration/estate-agents/penalties#:~:text=You
%20must%20not%20act%20as%20an%20agent's%20representative%20unless
%20you,employed%20as%20an%20agent's%20representative.&text=You%20must%20not
%20permit%20or,business%20of%20an%20estate%20agent.>.