Real Estate Agents Act Assessment

This assignment focuses on the Real Estate Agents Act 2008, covering essential topics such as professional conduct, licensing requirements, and the complaints procedure. Students are required to demonstrate their understanding of these concepts through a series of questions and scenarios. The assessment is designed for those preparing for entry into the real estate industry as salespersons.

UNIT STANDARD 26149 (V2)
Demonstrate knowledge of licensing and
code of professional conduct under the Real
Estate Agents Act 2008 (Level 4, Credits 4)
Assessment
Trainee Name
NSN Number
Contact Details Phone Email
Company
Trainee to complete after assessment
I confirm that all the evidence submitted against this assessment is my own work. I am aware that
plagiarism is not permitted. Plagiarism includes copying out of study guides, training resources
and/or other trainee’/s’ work. I understand that any plagiarism offences will lead to resit or
resubmission (verbal or written) and if repeated may lead to termination of my training agreement
with The Skills Organisation.
Signature: ________________________________________ Date:________________________
Branch Manager/Supervisor’s declaration
I confirm that the trainee named above is currently employed by _______________________
(Real Estate company). The trainee has provided answers and documentation that is their own
work and meets agent requirements.
Name: _________________________________ Signature: ____________________________
Contact details: (Tel) _________________________________ Date: _____________________
Overall assessment decision (to be completed by assessor)
Achieved Not achieved
This document is strictly confidential and the contents must not be disclosed to any unauthorised persons or
used in any unethical or illegal manner. This document is protected by Copyright Act 1994 © and is not to be
copied or reproduced in any form unless written permission is given by The Skills Organisation.

TRAINEE ASSESSMENT RESULT
Trainee name________________________________
Assessor to complete
Assessment Assessment
decision
(please circle)
Date Reassessment
date
(if applicable)
Reassessment
decision
(please circle where
applicable)
Task 1 – Questions Achieved /
Not Achieved
Achieved /
Not Achieved
Written feedback to trainee
Overall assessment decision Achieved Not achieved
I confirm that the trainee has completed this Assessment competently. The work is their own and
shows a level of understanding that is appropriate for the unit standard.
Assessor name _____________________________Signature _____________________________
Date ______________________________
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PURPOSE OF THIS UNIT STANDARD
This unit standard is for people preparing for entry into, or who are currently working in, the real
estate industry as salespersons.
People credited with this unit standard are able to
 explain the standards of professional conduct expected of a real estate licensee;
 explain the duties of a licensee to report misconduct or unsatisfactory conduct;
 explain the obligations to create awareness of the Real Estate Agents Act 2008,
Regulations and the Real Estate Agents Act (Professional Conduct and Client Care)
Rules 2012;
 explain the requirements for licensing; and explain the complaints procedure for individual
licensees.
Explanatory notes from the unit standard are included at the back of this assessment document.
The explanatory notes include references to legislation and definitions. If you wish to have a look
at a copy of the unit standard, the latest versions can be found on the NZQA website
http://www.nzqa.govt.nz/ .
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ASSESSMENT INFORMATION FOR THIS UNIT STANDARD
Before you start the assessment, please read through this assessment document so that
you understand what you have to do.
This is an open book assessment. Copying directly from any learning resource is
considered plagiarism and will lead to your assessment being invalid.
You will need to complete one (1) task for this unit standard.
Task 1 – Questions
You must answer all the questions in Task 1.
The task is split into six parts where you must answer questions on the particular subject:
 Part A – Professional conduct, client care, dealing with customers and creating
awareness
 Part B – Licensing requirements
 Part C – Complaints procedure
All answers must be in your own words to show that you understand the meaning of what you
are explaining, except when required to quote from official documents such as legislation and
codes of practice. Using examples is a good way to demonstrate understanding.
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WHEN YOU HAVE COMPLETED YOUR ASSESSMENT
Please submit your assessment using the process advised by Harcourts.
Feedback on this assessment material
The Skills Organisation values feedback so that we can continue to improve our assessment
resources. We invite you to send us your feedback about any areas you found difficult to use in
this assessment, or suggestions you have for changes and improvements.
Please send us your feedback by email to: [e-mail]
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BEFORE YOU START YOUR ASSESSMENT
Complete this checklist before you start completing your assessment
Trainee name ______________________
Pre-Assessment Statements
Trainee to complete Trainee to check/
tick box
I understand that the health and safety of everyone involved must be
maintained when assessment of this unit standard is being undertaken.
I understand that I will inform my assessor if I have any special needs that
need to be accommodated.
I understand what is required to gain competency.
I understand what I need to do with my assessment material when I have
completed it (submit my assessment material)
I understand how I will get my results.
I understand how the appeals process works.
I understand that The Skills Organisation will report my results to NZQA
If you are unsure of any of the above please refer to the Trainee handbook provided.
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TASK 1: QUESTIONS
PART A: PROFESSIONAL CONDUCT, CLIENT CARE, DEALING WITH CUSTOMERS AND
CREATING AWARENESS
1. Section 14 of The Real Estate Agents Act 2008 states the requirement for ‘practice rules’. The
following question relate to these ‘practice rules’. (ER 1.1)
a. What is the full title of these practice rules that are commonly known as ‘The Rules’ or
‘The Code’?
[Code of professional conduct and client care] ref[4]
b. Who is entitled to make practice rules for the real estate industry? How must notice of
these rules be made?
These rules were entitled to be made by the Authority.Inorder for the notice of these rules to be
made the authority notified the rules by giving notice in the gazette.Ref[ 3]
c. What are two reasons for having these practice rules according to Section 3 of the Real
Estate Agents Act (Professional Conduct and Client Care) Rules 2012?
According to this section 3 the reasons for having these practice rules are
1.Inorder to protect the interests of the consumer as the consumer is the main aim for this rules to be
made.(3)
2. To protect the confidence of the real estate industry.[Ref 3]
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d. The Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 sets an
overarching common law principle of fiduciary obligation to the client as the basis of the
standards of professional conduct. What does this mean in terms of the requirements of
an agent?
This common law principle of fiduciary obligation means that the licensee has to act with the utmost
good faith and trust in their dealings with different clients.This principle has being put within the real
estate agents act and it applies to all licensees,that is, the agent licencee who is legally supposed to
enter in to an agency relationship.[ 8]
2. Joe holds a salesperson licence. He is conducting an open home for his client.
One of the customers visiting the property asks him to clarify whether the downstairs flat is
permitted.
When obtaining the agency agreement, Joe was not aware that the flat was an alteration to
the property.
He had failed to question the client about the legal status of the flat. (ER 1.1)
a. Explain the standard of professional conduct Joe has breached and explain why it has
been breached.
In this scenario joe has breached the Real Estate Agents Act[professional conduct and client
care]rules 2012, he has neglected the duty of care whereby he was expected to as a owner of a
salesperson license he is expected to know ,act upon and within their required legal areas of
responsibility. He is also required to provide sound guidance and advice and to disclose any
information that could' material 'to the client.While obtaining the agency agreement Joe did not pay
attention that the flat was an alteration to the property and did not even question his client about the
legal status of the flat.[10.1]
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b. Based on the standards of professional conduct as set out in the Real Estate Agents Act
(Professional Conduct and Client Care) Rules 2012, what should Joe say to the
customer?
Joe should tell the customer that he was not aware about the downstairs flat that was being an
alteration to the entire property .He should also make sure he tells the customer about the risk of the
downstairs flat being an alteration to the entire property.In short Joe is not supposed to withhold any
information that by law should have been provided to the customer.He should also provide sound
advice and guidance and to disclose the information to the customer.[4]
c. If the client told Joe the flat was not permitted and directed him not to tell the customer,
what are Joe’s obligations to meet the standards of professional conduct? Give the
reference of the relevant rule in your answer.
If the client had told Joe to withhold the information about the downstairs flat being an alteration to
the entire property from the client,then Joe must not continue to act for that particular client[rule 10.8]
In other words Joe should just cancel the agreement agency with that client.This will therefore protect
Joe from any risk of breaching real estate agents act or also breaking a rule like misleading and
deceptive conduct generally [10.7)
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3. Read the following scenario and answer the questions below.
Scenario
Dave holds a branch manager’s licence.
He works for Jim Bow Realty.
Dave’s colleague, Jason, has listed a property.
Dave wants to buy this property himself.
The owner of the house is Mrs Johnston.
She is an elderly lady.
Dave thinks that it would be easy to negotiate a low price for this house.
He is aware of the provisions of the Real Estate Agents Act 2008 regarding contracts for
acquisition by a licensee or related person. (Sections 134 to 137)
 Dave knows that he will have to pay market price for the house if he complies
 He will also need to obtain a valuation.
Dave decides to ignore the Real Estate Agents Act 2008.
In an effort to deceive the client
 Dave arranges for his wife, Clare, to act as the customer using her maiden name
 Dave does not disclose his relationship to Clare to Mrs Johnston.
a. Dave has breached a number of rules under ‘Standards of professional conduct’.
Describe two of the rules Dave has breached. Explain why each rule has been breached.
(ER 1.1)
Dave has breached the law of fiduciary obligations he is not trust worthy in his dealings and he
has no utmost good faith and trust while he is dealing with mrs.Johnston he even decides to
involve his wife in the dealing with mrs johnston.(Ref6.1)
Dave has also neglected the rule of care he is not acting fairly and in good faith with mrs johnston
he is even withholding the information about his relationship with Clare which is unfair(rule 6.4)
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Scenario (continued)
Dave tells Jason his plans.
Dave threatens Jason to keep silent about the ‘scam’ if Jason wants to keep his
commission.
Dave instructs Jason to inform the client (Mrs Johnston) that her house
 is too expensive
 is outdated
 requires a significant amount of investment to bring it up to date
Dave hands Jason a written offer.
The offer is well below the advertised price.
Dave tells Jason to present the offer to his client.
b. Explain the two rules regarding ‘Client and customer care’ that Dave has breached and
why they have been breached. (ER 4.1)
Dave has breached the rule of disclosure of information, he has passed on the inaccurate
information about the house that it is expensive,outdated and requires amount of investment to
bring the house to date.(rule10.7)
Dave has also breached the duty of care ,Dave has the misleading and the deceptive conduct (rule
6.2).
c. Now that Jason has the offer from Clare, Dave’s wife, what is one action Jason must not
take in this situation? (ER 1.1)
Jason is not supposed to disclose the relationship between Clare and Dave.In short mrs Johnston
should never find out Clare is Dave's wife.
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d. Explain one action Jason must take in this situation in terms of his duty to report
misconduct or unsatisfactory conduct. Explain why he must take this action. (ER 2.1)
Inorder for Jason not to bring the repute of this industry down he should report Dave who is guilty
for misconduct.In this case Dave is a victim of unsatisfactory conduct and he should be reported to
the authority.He must take this action as it is responsibility of every licencee to report other
licensee who is guilty.(rule 6.3)
e. Mrs Johnston tells Jason she wishes to complain to the Authority about Dave’s behaviour.
What are two obligations Jason has under the Real Estate Agents Act (Professional
Conduct and Client Care) Rules 2012 in terms of creating awareness of the provisions
regarding complaints? (ER 3.1)
Jason should display the Real Estate Agents Act in a public area of each office or in any website
directly associated with the business.(8.1)
Jason should also ensure that all licences must make the real Estate agents act available for
anyone who asks for a copy.(8.2)
4. When entering into an agency agreement, what are the two obligations of an agent under Section 127 of the Real Estate
Agents Act 2008 to create awareness of the provisions of the Real Estate Agents Act (Professional Conduct and Client
Care) Rules 2012 and the Real Estate Agents Act 2008 through the approved guide? (ER 3.1)
The first obligation is that an agent should not enter in to an agency agreement with a person for
the sale of residential property unless the agent has provided a copy of the approved guide before
the agreemernt is signed by the person(127).
Secondly the agent must receive a signed acknoledgement from the person who has been given
the approved guide(127)
5. Read the following scenario and then complete the table on the following pages.
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