Open Polytechnic RES420 Assignment 3 Task 1: Real Estate Law Breaches

This assignment, completed for the RES420 Fundamentals of Real Estate course at Open Polytechnic, analyzes seven scenarios involving potential breaches of real estate law. Each scenario details actions by a salesperson that may violate the Fair Trading Act 1986 and the Real Estate Agents Act 2008, including breaches of the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012. The assignment identifies specific sections and subsections of the legislation that apply, such as sections 9 and 14(1) of the Fair Trading Act and various rules within the Code. The analysis covers issues like providing incorrect information, misrepresenting property features, failing to disclose relevant information, and not advising clients to seek legal advice. The assignment also specifies which organizations, such as the Real Estate Authority (REA) and the Real Estate Institute of New Zealand (REINZ), would handle such issues. The student's responses demonstrate an understanding of the legal and ethical responsibilities of real estate agents.

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Assignment
R E S 4 2 0 F u n d a m e n t a l s o f R e a l E s t a t e / A 3
ASSIGNMENT 3 (RESUB)
RES420 Fundamentals of Real
Estate
Assignment 3Task1 Answer sheet
Use this answer sheet to record your answers to Assignment 3. Save this
document, and then submit it through the assignment submission link on the
Online Campus.
Scenario Questions Answers
1 a. What, if anything, has been
done wrong by the
salesperson?
The client was unsatisfied with the sales
person, as he provided wrong information. It
was advertised five double bedrooms but after
considering it was more like three double
bedrooms.
b. What legislation (if any) has
been breached? (Identify the
section and subsection as
required). Note, more than
one Act may apply in some
situations.
There has been a breach performed under the
section 9 and 14(1) under the Fair Trading Act
1986.
c. Has the Real Estate Agents
Act (Professional Conduct
and Client Care) Rules 2012
(the Code) been breached? If
so, state the rule(s) that
apply.
There has been a breach performed under the
section (9.1), (9.2), (9.3) under the Real
Estate Agents Act (Professional Conduct and
client Care) Rules 2012.
Furthermore Rule 6.4 regarding mislead of a
client or providing the false information has
been breached.
d. What organisation(s) would
deal with such an issue, and
why?
Real Estate Authority (REA) and The Real
Estate Institute of New Zealand (REINZ).
The agency can resolve the issues by
maintaining in-house procedures. The clients
may also access the Authority’s complaints
without dealing it with the in-house.
2 a. What, if anything, has been
done wrong by the
salesperson?
Mr. Steve Smith listed his house and gave the
salesperson a copy of registered valuation
about a year ago.

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b. What legislation (if any) has
been breached? (Identify the
section and subsection as
required). Note, more than
one Act may apply in some
situations.
There has been a breach performed under the
sections 72 (c) and 73 (b), (d) under the Real
Estate Agents Act 2008.
c. Has the Real Estate Agents
Act (Professional Conduct
and Client Care) Rules 2012
(the Code) been breached? If
so, state the rule(s) that
apply.
There has been a breach performed under the
section 10.10, 10.11, and 10.12 under the
Real Estate Agents Act (Professional Conduct
and Client Care) Rules 2012.
Furthermore, Rule 10.1, 10.11, & 10.12 for
providing the information regarding the sale of
the property in writing has been breached.
d. What organisation(s) s would
deal with such an issue, and
why?
Real Estate Authority (REA) and The Real
Estate Institute of New Zealand (REINZ).
An agent can solve the problem of the clients
in-house. The clients can also access the
Authority’s complaints process before in-
house procedures.
3 a. What, if anything, has been
done wrong by the
salesperson?
The Salesperson failed to clarify the meaning
of ‘plus GST’ to the new immigrants and there
was a communication barrier. The clients did
not be able to understand in English. They
accepted the offer and paid more than they
had expected.
b. What legislation (if any) has
been breached? (Identify the
section and subsection as
required). Note, more than
one Act may apply in some
situations.
There has been a breach performed under the
section 9 and 14 (1) under the Fair Trading
Act 1986.
There is another Act which has been
breached under section 35 (1), (2) under the
Contract and Commercial Law Act 2017.
c. Has the Real Estate Agents
Act (Professional Conduct
and Client Care) Rules 2012
(the Code) been breached? If
so, state the rule(s) that
apply.
There has been a breach performed under
the section 9 under the Real Estate Agents
Act (Professional Conduct and Client Care)
Rules 2012.
Furthermore, Rule 6.4, 9.1, 9.2 and 9.3 has
been breached regarding the communication
barriers between the customers and failed to
provide the proper information.
d. What organisation(s)s would
deal with such an issue, and
why?
Real Estate Authority (REA) and The Real
Estate Institute of New Zealand (REINZ). The
Agents can resolve the problems of the clients
in-house and the clients can also access to
the Authority’s complaints process before in-
house procedures
4 a. What, if anything, has been
done wrong by the
The sales person deleted the power pylon in
the front of paddock from the photo which was

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salesperson? advertised in the newspaper. It showed only
the house and the paddock.
b. What legislation (if any) has
been breached? (Identify the
section and subsection as
required). Note, more than
one Act may apply in some
situations.
There has been a breach performed under the
section 9 and 14(1) under the Fair Trading Act
1986.
c. Has the Real Estate Agents
Act (Professional Conduct
and Client Care) Rules 2012
(the Code) been breached? If
so, state the rule(s) that
apply.
There has been a breach performed under the
section 6 under the Real Estate Agents Act
(Professional Conduct and Client Care) Rules
2012.
Furthermore, Rule 6.4 and 5.2 regarding the
misleading and providing the false information
has been breached.
d. What organisation(s) would
deal with such an issue, and
why?
Real Estate Authority (REA) and The Real
Estate Institute of New Zealand (REINZ). The
Agents can resolve the problems of the clients
in-house and the clients can also access to
the Authority’s complaints process before in-
house procedures.
5 a. What, if anything, has been
done wrong by the
salesperson?
He failed to advise them to seek for legal
advice before signing the agency agreement.
b. What legislation (if any) has
been breached? (Identify the
section and subsection as
required). Note, more than
one Act may apply in some
situations.
There has been a breach under the sections
127(1), (2) & (3) under the Real Estate Agent
Act 2008.
c. Has the Real Estate Agents
Act (Professional Conduct
and Client Care) Rules 2012
(the Code) been breached? If
so, state the rule(s) that
apply.
There has been a breach under the sections
9.7 (a) under Real Estate Agents Act
(Professional Conduct and Client Care) Rules
2012.
Furthermore, Rule 6.2 for not acting in good
faith to his clients.
d. What organisation(s)s would
deal with such an issue, and
why?
The Real Estate Authority (REA) and The
Real Estate Institute Of New Zealand
(REINZ). The Agents can resolve the clients in
house and the clients can access to the
authority complaints process before in house
procedures.
6 a. What, if anything, has been
done wrong by the
salesperson?
Providing false or misleading information to
clients.
b. What legislation (if any) has There has been a breach under the sections 9

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R E S 4 2 0 F u n d a m e n t a l s o f R e a l E s t a t e / A 3 t a s k s h e e t
been breached? (Identify the
section and subsection as
required). Note, more than
one Act may apply in some
situations.
misleading and deceptive conduct generally
and section 14A under The Fair Trading Act
1986.
c. Has the Real Estate Agents
Act (Professional Conduct
and Client Care) Rules 2012
(the Code) been breached? If
so, state the rule(s) that
apply.
There has been a breach under section 6.2
and section 9.4 Real Estate Agents Act
(Professional Conduct and Client Care) Rules
2012.
d. What organisation(s)s would
deal with such an issue, and
why?
The Real Estate Authority (REA) and The
Real Estate Institute Of New Zealand
(REINZ). The Agents can resolve the clients in
house and the clients can access to the
authority complaints process before in house
procedures.
7 a. What, if anything, has been
done wrong by the
salesperson?
Providing false and misleading information to
clients regarding the property that he is selling
to his client.
b. What legislation (if any) has
been breached? (Identify the
section and subsection as
required). Note, more than
one Act may apply in some
situations.
There has been a breach under the sections 9
misleading and deceptive conduct generally
and section 14 under The Fair Trading Act
1986.
c. Has the Real Estate Agents
Act (Professional Conduct
and Client Care) Rules 2012
(the Code) been breached? If
so, state the rule(s) that
apply.
There has been a breach under section 6.2
and 5.2 under Real Estate Agents Act
(Professional Conduct and Client Care) Rules
2012
d. What organisation(s)s would
deal with such an issue, and
why?
The Real Estate Authority (REA) The Real
Estate Authority (REA) and The Real Estate
Institute Of New Zealand (REINZ). The Agents
can resolve the clients in house and the
clients can access to the authority complaints
process before in house procedures.