Report on Real Estate Industry: Structure, Legislation, and Ethics

This report provides a comprehensive overview of the real estate industry, focusing on the structure of real estate agencies and the roles of various personnel, including administrators, estate agents, and agent representatives. It examines different business ownership options and the services offered, such as property staging, buying and selling, and property management. The report also delves into the relevant legislation in Australia, particularly the Real Property Act 1900 and various Victorian regulations, highlighting the importance of adhering to ethical standards and professional conduct as outlined in the Estate Agents Act 1980. Furthermore, it discusses client service standards, emphasizing the need for rapid and efficient responses to client inquiries and the identification and assessment of risks in property sales and management. The report concludes by summarizing key findings and emphasizing the industry's rapid growth and the significance of regulatory compliance and ethical behavior.

Research Information

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
CONCLUSION..........................................................................................................................................6
REFERENCES..........................................................................................................................................7

INTRODUCTION
The real estate industry refers to the land as well as buildings that are primarily used by
industrial businesses for different activities such as factories, mechanical productions etc. There
are various types of real estates such as commercial, residential, industrial and vacant land
(Adnan and et.al., 2017). The report explains the real estate agency structure and personnel. It
also explains the legislation relating to the ethics as well as professional conduct of the real estate
agents as well as agents’ representatives.
MAIN BODY
Real estate agencies offer various business ownership options as well as services. Most
agents in the real estate are independent contractors, who are self-employed business owners
affiliated with a real estate broker who has a license. As such, it can be said that they run
independent businesses. The different forms of business ownership options that are offered by
real estate agencies include sole proprietorship, partnership corporation as well as limited
liability company. Real estate agencies offer various kinds of services such as property staging,
buying and selling different real estate properties, new construction as well as rental and
investment properties. A real estate administrator is responsible for overseeing the day-to-day
operations of the real estate offices. They have to interact with tenants and also, coordinate with
property managers. On the other hand, estate agents are responsible for mainly working with the
home buyers and sellers during the sales and purchases of homes (Botzem and Dobusch, 2017).
They also play a role in guiding and assisting with tasks such as visiting homes that are for sale,
listing properties etc. An agent’s representative has the responsibility of performing any legal
functions that of an estate agent. Such as they can act as either a salesperson or a property
manager. Lastly, the management is responsible for acting in the best interest of the owner and
keep it occupied with the tenants. The legislation that relates to real estate in Australis is the Real
Property Act 1900 and Real Property Regulation 2019.
There are different legislations in Victoria, Australia that relate to regulation of the real
estate. These include the Estate Contracts Regulations 2008, Estate Agents Education
Regulations 2008, Estate Agents Exemption Regulations 2014, Estate Agents Fees Regulations
2018 and Estate Agents (Retirement Villages) Regulations 2016. A real estate sales manager in

Victoria is responsible for conducting interviews and hiring sales staff in the real estate industry.
they take into account the learning needs of the sales staff and provide them training accordingly.
it is important for real estate agencies to have access to the legislations in order to ensure that
they can carry out their legislations in an effective manner.
Ethics and professional conduct play an important role in the real estate industry in
Victoria, Australia. Some of the important ethics include acting honestly and in the best
knowledge and following the client’s instructions. The Estate Agents Act 1980 is the legislation
that is related to ethics and professional conduct of the real estate agents as well as the agents’
representatives. The objective of this act is to promote appropriate standards of conduct as well
as competency for people within the real estate agency as well as protect the interest of people
using real estate services. Lastly, another objective of the act is to ensure that effective
procedures for the resolution of any kind of disputes exist. The obligations of this act are that the
real estate agent as well as the agents’ representatives must know the laws relating to
professional conduct as well as ethics. They also must always follow the lawful instructions that
are provided by the clients and act in a fair as well as honest manner. it is important that they
must inform the client about any personal or commercial relationship that they have with the
supplier (Fields and Rogers, 2021). They must not accept commission from both a client as well
as consumer for any kind of transaction. This is because it is considered to be unethical as per the
respective legislation. Besides this, they must also not engage in conduct that is unprofessional in
any case and mislead a tenant or a purchaser about the instructions of a seller. Instead, they must
advise the clients and consumers about the agency complaint as well as the procedures for
resolving a dispute.
Client service standards in real estate refer to the interactions between the client as well
as a real estate agency and the customer expectations that result from it. Today’s real property
clients assume swifter provider than did any generation earlier than them. (Not most effective
quicker than their mother and father expected, however even than they themselves predicted this
time ultimate year.) An hour represents a year in net time; a potential purchaser who doesn’t pay
attention from the agent the equal morning or afternoon in their try to contact the agent can also
very well pass on, on the belief that the agent is in no way going to get returned to them. It can
be said that responding quickly is one of the best strategies that can be implemented for

monitoring as well as review of the client standards. By responding quickly, the real estate agent
is not only able to build strong relationship with the clients, but also develop an understanding
about their preferences in much more detail. Between social media, on line buying, and facts at
the push of a button, nowadays’s client expects rapid, e cient carrierffi (Liu and et.al., 2018). The
faster you respond to an email, a cellphone call, text, or social media message, the much more
likely you are to transform that lead into a consumer. If a lead contacts you via cellphone, do not
permit it visit voicemail unless you're with a patron. Many purchasers received leave you a
message and could circulate on to every other agent if you don’t solution their name right away.
If you are away or with a customer, make certain to both text or set up an away message that
announces you may be in contact rapidly. People attain out to you in a way that is most relaxed
and e cient for them, so it is able to be beneficial to respect their desire whilst contacting themffi
for the first time. It’s long been a great practice to respond returned within the way that the lead
reached out to you. If a client sends an email, reply through e-mail (Mangialardo, Micelli and
Saccani, 2019). If she or he sends you a textual content message, textual content again and then
endorse a phone call. If a person reaches out on the phone, name again. However, facts is more
and more showing that response time is the most crucial element in changing on line leads. If
comes all the way down to a decision of short reaction or responding within the equal way as the
lead reached out, go with velocity.
One of the strategies for identifying and assessing risks in sale of a property is to speak to
the landlord or the owner of the property. They can provide an overview of the potential risks
about the same. As a result, during the sale, the real estate agent will be able to deliver the same
information to the buyer of the property as well. Therefore, this is one of the strategies that can
be adopted by the real estate agent. There are certain risks that are related with advising the
clients on property management options. One of the risks include administration risk wherein the
real estate advises the clients regarding contract and other paper work, there can be a case
wherein the client or the buyer does not listen to the instructions properly and hence might have
to deal with the negative consequence later (Rogers, Wong and Nelson, 2017). The real, estate
agent has to manage the roll outs, maintenance tasks, claims and contracts. Therefore, in order to
reduce the risk, they should make use of effective property management tools as this can help in
overcoming the risk. Open house accidents and injuries is one of the other risks that can arise. If
the real estate agent is showing a relatively large and open house property to the client, there are

chance of injuries and accidents. Furniture breaks and scratched paints is another potential risk
that can affect the overall process of property management (Sangchan and et.al., 2020).
Therefore, it is important to identify risks that are identified above to be managed in an effective
manner such as the agent should have a general liability insurance in order to protect themselves
from getting sued. On the other hand, in order to eliminate the administration risk, it is important
for the agent to implement effective project management tools that store, organize as well as
analyze the data.
CONCLUSION
From the above report, it can be concluded that the real estate industry is one of the
fastest growing industries across the world. In context to Australia, there are different
legislations that are related with the regulation of the real estate as well as ethical conduct of the
real estate agents. Also, there can be various risks that can affect the real estate agent as well as
agents’ representatives.

REFERENCES
Books & Journals
Adnan, Y.M. and et.al., 2017. Importance of soft skills for graduates in the real estate
programmes in Malaysia. Journal of Surveying, Construction and Property, 3(2).
Botzem, S. and Dobusch, L., 2017. Financialization as strategy: Accounting for inter-
organizational value creation in the European real estate industry. Accounting,
Organizations and Society, 59, pp.31-43.
Fields, D. and Rogers, D., 2021. Towards a critical housing studies research agenda on platform
real estate. Housing, theory and society, 38(1), pp.72-94.
Liu, G. and et.al., 2018. Strategic business model typologies evident in the Chinese real-estate
industry. International Journal of Strategic Property Management, 22(6), pp.501-515.
Mangialardo, A., Micelli, E. and Saccani, F., 2019. Does sustainability affect real estate market
values? Empirical evidence from the office buildings market in Milan (Italy).
Sustainability, 11(1), p.12.
Rogers, D., Wong, A. and Nelson, J., 2017. Public perceptions of foreign and Chinese real estate
investment: intercultural relations in Global Sydney. Australian Geographer, 48(4),
pp.437-455.
Sangchan, P. and et.al., 2020. Fair value exposure, changes in fair value and audit fees: evidence
from the Australian real estate industry. Australian Accounting Review, 30(2), pp.123-
143.