CPPREP4003 & CPPREP4005: Legislation and Compliance Workbook - REINSW

This document presents a completed learning activity workbook focused on real estate legislation and compliance, developed by the Real Estate Institute of NSW (REINSW). The workbook covers key competencies including accessing and interpreting real estate legislation (CPPREP4003) and preparing to work with real estate trust accounts (CPPREP4005). It includes activities designed to enhance understanding of Commonwealth and State legislation, common law, contract law, equity law, and statute law. The assignment explores various aspects of legislation, such as acts, regulations, amendments, and codes of practice. It also covers the role of regulators, reading rules, and accessing up-to-date legislation. The workbook includes questions on accessing the most recent version of legislation, the difference between rules of conduct and codes of practice, penalties for breaching legislation, and the value of penalty units. It also references relevant legislation such as the Anti-Discrimination Act and the Corporations Act, as well as guidance materials for interpretation. Finally, the assignment also includes other relevant documents such as a residential tenancy agreement and handbook excerpts.

Learning Activity Workbook
Legislation and
Compliance
Real Estate Institute of NSW – RTO 90117

Introduction...........................................................................................................................................4
Learning Activity 1.........................................................................................................................5
Learning Activity 2.........................................................................................................................7
Learning Activity 3.........................................................................................................................8
Learning Activity 4.........................................................................................................................9
Learning Activity 5.......................................................................................................................10
Learning Activity 6.......................................................................................................................11
Learning Activity 7.......................................................................................................................12
Learning Activity 8.......................................................................................................................13
Learning Activity 9.......................................................................................................................14
Learning Activity 10.....................................................................................................................15
Learning Activity 11.....................................................................................................................16
Learning Activity 12.....................................................................................................................18
Learner Declaration.........................................................................................................................19

Introduction
This workbook contains activities for the unit(s) of competency:
CPPREP4003 Access and interpret legislation in real estate
CPPREP4005 Prepare to work with real estate trust accounts
for more information on the units of competency go to www.training.gov.au.
The learning activities workbook has been designed to enable you to gain an
understanding of the application of the learning you are undertaking.
Each activity is linked to the information contained in the Learner Guide and is a
foundation for the questions in the final assessment. Please follow the instructions
from your trainer to complete the activities.
Some of the activities may be done in class and other activities are a reflection of
your understanding of the course content and will be done in your own time.
These activities form part of the overall assessment of the unit(s) in this cluster.
Once you have completed the workbook you will need to scan and upload to your
learning portal. There are several apps for your mobile phone that will allow you to
scan all the pages into one document, (please do not upload individual pages).
If you have any difficulty in answering the questions or need further clarification,
please speak with your trainer.
REINSW recognises the individual needs of each learner and will provide reasonable
adjustment if required.
To complete this section, type your answer where you see the I insertion symbol.
You have limited formatting options.

Learning Activity 1
1. Find a webpage on how to read legislation and make a summary of the
information found for both Commonwealth and State legislation.
2. Explain the following:
 Common law.
 Contract law.
 Equity law.
3. Statute law.
4. Explain the following:
 Act.
 Regulation.
 Amendment.
 Schedule.
 Appendices.
 Mandatory codes of practice.
Type your answer here
Find a webpage on how to read legislation and make a summary of the
information found for both Commonwealth and State legislation.
Commonwealth legislation was enacted by the Australian government. It can
also be referred to as the Acts of Australian government. The legislation may
be referring and relating to different categories of areas like learning
institutions and other important training programs. These include the
curriculum and also higher education funding. On the other hand, state
legislation contains information that protects the citizens of a particular
country. This means that in this legislation, the rights and responsibilities of
the individuals are properly listed. It also defines the authorities where the
legislation applies.
Explain the following:
 Common law. This is the body of law that has been obtained from
judicial decisions from courts of law and other related tribunals.

 Contract law. It’s referred to as the body of law that is associated in
making and enforcing binding agreements.
 Equity law. This can be referred to the body of law that is related to
provision of remedies. This means that it provided guidelines to be
followed in recovering ones right or driving redress for a wrong done.
 Statute law. These are laws or statutes that have been voted on by the
government itself. This is where the bill is discussed by all the
members of the house and if majority of the members support the bill,
then it becomes a law where its passed.
Explain the following:
 Act. This is a bill that has been approved after going through various
legislative procedures that are laid down to be followed before it
becomes a law.
 Regulation. This can be referred to as the body of rules that have the
support of force of law that has either been stipulated by a top
authority that is associated to the authority’s control status.
 Amendment. This is an official change that may be made in a law
through following steps laid down for a change to happen.
 Schedule. This means a statement in the initial events or proceedings
that has been sent with an accusation that has been returned from a
lower court.
 Appendices. This is referred as number of supplementary information
that has been collected at the end of the contract. It can also be
referred to as a brief of a submission presented in court of law.
Mandatory code of practice. These are a number of written rules that shows how
professionals in a particular field of work should behave themselves while on duty.

Learning Activity 2
Go to the Property Regulator’s webpage to find two Acts and Regulations that
relate to real estate that are administered by the Regulator.
1. Document the URL used and the names of the Acts and Regulations.
2. Explain the role of regulators in relation to the legislation
The regulators ensure that eth members get professional growth through
their services. The regulators also help in ensuring that the real estate
policies are adhered to fully. They enforce the real estate agency act from
the members.
Type your answer here
Document the URL used and the names of the Acts and Regulations.
 Anti- Discrimination Act
 Corporations Act
Explain the role of regulators in relation to the legislation
The regulators ensure that eth members get professional growth through their
services. The regulators also help in ensuring that the real estate policies are
adhered to fully. They enforce the real estate agency act from the members.

Learning Activity 3
Using one of the Acts that you have found list the following:
 Long title
 Short title
 Commencement
 Application
 Headings
 Parts
 Divisions and sub divisions
 Clauses and subclauses
 Schedules and appendices
Type your answer here
Long title is the title that appears on the first page. This means it appears before
section one of the Act. For instance construction of an Act
Short tile is the title that appears on the front page of the Act. An example is a part
of the Business Act
Commencement is the procedure that is normally followed by the court law when
initiating its legal proceedings.
Application means applying for a request before a court for a formal assistance by
the court. This is like extending the time for the hearing of the case.
Headings include the: Staff are not permitted to receive gifts from clients
A part can be referred to as the group of sections of an Act. This includes: part I,
part 2 and so on.
Division are sections that has been considered big enough to be sun divided into
small groups .This include: introduction, chapter one etc while sub divisions means
the divisions now are dived now into smaller groups. This means that chapter one
may have other small groups like summary.

Clauses can be referred to as sections or paragraphs contained in a legal document
while sub clauses are now more smaller sections that have been divided from the
main cause.
Schedules are used in the specification of the working procedure of the Act while
appendices can be referred to as supplementary kind of a document that is
normally attached at the end of a particular legal writing.

Learning Activity 4
1. Explain with examples 2 of the below reading rules:
 Plain meaning rule
 Golden rule
 Mischief rule
 Purpose approach
2. Name one source of guidance material that will assist your interpretation of
legislation
3. What is the difference between the definitions which uses the word “may”
“must” and “should?
Type your answer here
Plain meaning rule refers to a type of statutory construction where statutes are
interpreted through a normal ordinary meaning. This may include the Holy Trinity
church, see rector etc.
Golden rule means a statutory construction where statutes cannot be interpreted.
This means the plain meaning rule cannot be used in this case. Golden rule include
the wider view (1935) and Narrow view (1872)
Mischief rule is a rule that is mostly used in find out on the true meaning of a a
particular act where the meaning is obscure. An example include the case of
Corkery carpenter in (1991) where a judgement was made to have him jailed for
being drunk when riding a bicycle in public.
Purpose approach is a rule that is mostly used to bring out a clear interpretation
and understanding of common law. For instance case of Pepper V Hart in 1992 and
Freemans v Pickstone in 1989
Name one source of guidance material that will assist your interpretation of
legislation
E-lawources.co.uk

What is the difference between the definitions which uses the word “may” “must”
and “should?
The word must mostly relates to a situation where one is bound to do something
while May means there is an option, you may either do it or don’t do it. The word
should means that in the past you should have done something. This simply means
it’s imperative.

Learning Activity 5
Go to a recognised webpage for legislation eg: austlii.edu.au and find three
Acts that are not real estate specific but are relevant to the industry. They
could be Commonwealth or State.
1. Document the URL’s used and the names of the Acts.
2. Explain the purpose of one of the Acts and how it applies to real estate.
3. Using the example of discrimination laws, where there is legislation that is
both Commonwealth and State which Act takes precedence?
4. How would you ensure that you keep up to date with changes to
legislation?
Type your answer here
Document the URL’s used and the names of the Acts.
Argus law reports 1895-1950
Australia designs office 1982
Australia patent office 1981
http://www.austlii.edu.au/agni-bin/viewdb/au/cases/cth/ArgusLawRp/
Explain the purpose of one of the Acts and how it applies to real estate.
The contribution of the Australian patent office is recognized in ensuring that the
trademarks of the members are protected from distortion by other people.
Australia consumer law, it may be providing some additional advantage to
marketing of real estate properties.
Using the example of discrimination laws, where there is legislation that is both
Commonwealth and State which Act takes precedence?
Human rights legislation Act
How would you ensure that you keep up to date with changes to legislation?

In order to be able to embrace change, one is supposed to undertake the new
changes positively since in most cases changes in the legislative systems are done
for better reasons. No one is supposed to show any kind of resistance.

Learning Activity 6
It is the agent’s responsibility to access, read, interpret and apply legislation in
day to day activities.
1. Explain how you would know that you are accessing the most recent
version of the Act or Regulations.
2. Explain the difference between a rule of conduct and a code of practice.
3. What are the penalties for breaching legislation?
4. What is the value of penalty units in the current legislation that relates to
real estate?
5. Explain where you would find this information.
Type your answer here
Explain how you would know that you are accessing the most recent version of the
Act or Regulations
You can know I the legislation is being enforced by Australian court of law
If it’s being supported by the Australian securities and investment commission Act
of year 2001.
The legislation may be applied as a law in the commonwealth
Explain the difference between a rule of conduct and a code of practice.
Rules of conduct means the rules that within the law while code of practice means a
set of rules and regulations and spells out the duties and responsibilities of
individuals or a company.
What are the penalties for breaching legislation?
Any individual who breaches rule of law is subjected to a strict disciplinary action
One may be subject to imprisonment and huge fines or both
You may get a negative listing on your conduct
You may be revoked your licences

What is the value of penalty units in the current legislation that relates to real
estate?
The value of the penalty unit is $ 165.22 for the year 2019-2020
Explain where you would find this information.
At the commonwealth law and NSW legislation

Learning Activity 7
Outline the steps that you believe should be taken if you suspected a
colleague or team member was in breach of legislation.
Type your answer here
 Discuss the issue that lead to breach with the colleague
 Comprehend timeline required to resolve

 Confirm if the there are losses suffered
 Look for alternative solution

Learning Activity 8
Review legislation relating to trust accounts and summarise:
1. The purpose of trust accounts in real estate
2. Different types of trust money
3. Types of real estate trust accounts
4. Regulatory requirements for the operation of both manual and electronic
trust accounts
Type your answer here
The purpose of trust accounts in real estate
Trust accounts being moneys that are held by the estate agent on behalf of
members, their purpose is to ensure that the member’s money is kept safe.
Different types of trust money
 Unit fixed trust money
 Discretionary trust money
 Hybrid trust money
Types of real estate trust accounts
 Property management accounts
 Property sales accounts
Regulatory requirements for the operation of both manual and electronic trust
accounts
 The deposit taking facilities must be notified by the licensee
 The account should be in the name of the corporation if its owned by a
company and not a specific individual and vice versa
 The name of the corporation or the individual who is the licensee must
appear on prefix which is followed by other key identifiers of the trust
account

Learning Activity 9
Referring to legislation for trust accounts
1. Explain the roles and responsibilities for the operation of the trust account.
2. What would be the extent of your role in the operation of the trust account?
3. What controls should an agency have for the operation of the trust account
to ensure its security?
4. What controls should trust accounting software have for the operation of
the trust account?
5. What is a trust account audit and why are they required?
Type your answer here
Explain the roles and responsibilities for the operation of the trust account.
Through the operation of the trust account, the licensee must ensure that the
transactions made are safe. The licensee in charge ensures all his responsibilities
are done well. This means that the licensee has the duty to verify all the
transactions that have been made are true and accurate.
What would be the extent of your role in the operation of the trust account?
One may be involve in offering a helping hand in the management of the trust
account like maintenance of information. This information may be in terms of the
licences’ of the properties or even rent collection.
What controls should an agency have for the operation of the trust account to
ensure its security?
To be able to monitor each and every transaction or any activity that happens in the
account. This can be done through implementation of audits on the trust accounts
to confirm if all is true and accurate.
What controls should trust accounting software have for the operation of the trust
account?

The software should be able to monitor the activities of the account and also
provide accurate information. This is because the software would handle huge
amount of data.
What is a trust account audit and why are they required?
A trust account audit ensures that all the transactions in the account are accurate
and reliable.
It also ensures that the trust account follows the legislation and it’s compliant with
all requirements laid down.

Learning Activity 10
Refer to legislation and best practice to answer the following questions:
1. What are the responsibilities of the licensee in charge or person with
effective control responsibilities relating to trust accounts?
2. What should happen if there were inaccuracies in trust account transactions
or if the trust account was overdrawn?
3. What impact would trust account fraud have on the business, client and
staff member working with the trust account?
Type your answer here
What are the responsibilities of the licensee in charge or person with effective
control responsibilities relating to trust accounts?
 A licensee authorizes payments from the account
 He / she verifies all the transactions in the account
What should happen if there were inaccuracies in trust account transactions or if
the trust account was overdrawn?
The licensee would be required to explain the reasons leading to the situation. The
account would be under investigation to verify if it’s true and what led to the same.
What impact would trust account fraud have on the business, client and staff
member working with the trust account?
It would lead to the loss of business and trust from the client. No one would trust
their money to be managed by the firm thus loss of business and opportunities to
the members of staff. This would damage the reputation of the company as a whole.

Learning Activity 11
1. Using the table below list five standard transactions that occur in a trust
account for sales and property management.
2. Choose four of your identified transactions and discuss ways that
inaccuracies could occur and what could be done to prevent the problem.
3. Complete the table explaining the trust accounting cycle.
Standard tasks
Sales Management
Awareness of the market Good documentation
Communication with clients Advertisement
Using modern systems to enhance the
work
Reports of performance are presented
Clear instructions to client and firm Keeping the information condition
promotions Having contract ready all the time in
case they are needed
Type your answer here
Standard tasks
Sales Management
Lack of proper information. . This can be addressed through
proper research.
Poor systems that compromise work. Systems should be updated from time
to time.

Unclear instructions and procedures. It should be ensured that all
instructions are in writing and
commitment is done.
Promotions that are not increasing
sales.
A deep research should be done in the
market.

Trust Accounting Cycle
Transaction
These are made by the client but effected by the
licensee
Source
documents
The information recorded is from the invoices, cheques
drawn in favour of the accounts and contains even
statement of account.
Journals
This is kept safe by the licensee or the agent which
includes the cashbooks and other key journals
Ledgers
These are the ledgers for every owner the property
being managed
Trial Balance
This is where a lot of information or clients concentrate
on since its contains listing of all balances in the ledger
account
Bank
Reconciliation
This is done to ensure that all the records are accurate
and true and ascertains whether they can be relied
upon.

Learning Activity 12
1. Complete the following transactions:
 Paul Bell lives at 45 York St and his rent is $500 per week. The property
is owned by Steve Smith. Paul’s rent was paid up until yesterday. Paul
has come into your office today with a cheque to pay two weeks rent.
Complete the receipt for his rent.
 The agency has just sold 22 Todd Avenue, the vendor Mark Jacobs is
very excited with the sales price of $890,000. Wei Yung the purchaser,
has come to pay the 10% deposit. Complete the receipt for his deposit.
1. When would you bank these funds?
2. How would payments be made out of the trust account?
3. Explain the legislative requirements for end of month processing for trust
accounts.
Type your answer here

Steve Smith Trust Account
45 York St Receipt no 223
Date 27/3/2020
Received from Pail Belll
The sum of 1,000 USD
Being for Two weeks rent
Property details Via a cheque
Period two weeks $
Status paid
Per Method
Excellence Property Sales Trust Account
30-32 Wentworth Ave Sydney Receipt no 566
Date 27/3/2020
Received from Mark Jacobs
The sum of 89,000 USD
Being for 10% of payment for purchase of 22 Todd Avenue
Property details 22 Todd Avenue
$ balance is 801,000 USD
Per Method

Learner Declaration
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