Assessment: Real Estate Industry, Property Sales and Management

This assessment covers various aspects of the real estate industry, including legal and ethical requirements for property sales and management. It explores the roles and responsibilities of key agencies like the ACCC, REINSW, and NSW Fair Trading. The assignment delves into different types of tenancies, focusing on residential and retail tenancies, outlining legislative requirements such as disclosure, rent increases, and agreement terms. It also addresses the responsibilities of property managers to landlords and tenants, including maintaining property conditions and handling tenant issues. The assessment further examines tenant agreements, termination processes, rent receipts, and end-of-month statements. Additionally, it covers essential documents for property promotion, differences between joint tenants and tenants in common, and the information contained in a Certificate of Title, including the impact of encumbrances. Finally, it touches on the requirements for a purchaser and vendor after contracts have been exchanged. The student's responses reflect an understanding of the real estate industry's operational, legal, and ethical facets.

CPPDSM4080A Work in the real estate industry
CPPDSM4008A Identify legal and ethical requirements of property sales
CPPDSM4007A Identify legal and ethical requirements of property management
CPPDSM3019B Communicate with clients as part of agency operations
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Assessment Information
Assessment for this unit covers the elements and performance criteria for the unit of
competency:
CPPDSM4080A Work in the real estate industry
CPPDSM4008A Identify legal and ethical requirements of property sales
CPPDSM4007A Identify legal and ethical requirements of property management
CPPDSM3019B Communicate with clients as part of agency operations
These units, form part of the CPP30211 Certificate III in Property Services (Agency) and
CPP40307 Certificate IV in Property Services (Real Estate) under the Australian
Qualification Framework and;
 Licensing under NSW Fair Trading.
Assessment structure
 Part A – Short Answer Questions
 Part B – Extended Answer Questions
 Part C – Workplace Situation Activities
Performance Criteria and Elements
Every assessment for a Unit of Competency within the Australian Quality Framework
(AQF) is structured around Performance Criteria and Elements. To access the
performance criteria and elements go to www.training.gov.au and search for unit code:
REINSW recognises the individual needs of each learner and will provide reasonable
adjustment when required.
To complete this assessment, type your answers where you see the insertion
symbol.
You have limited formatting options.
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PART A – SHORT ANSWER QUESTIONS
For questions in Part A, you will need to provide answers that directly address
the question, you may answer in point form. Ensure that you answer all parts of
the question.
To complete this section, type your answers where you see the insertion symbol.
You have limited formatting options.
Question 1 Research and explain the roles and responsibilities of the following
agencies
1. Australian Competition & Consumer Commission
2. Real Estate Institute of NSW
3. NSW Fair Trading
4. Australian Securities and Investments Commission
5. Tenants NSW
1. This is used to examine the quality of the products that are available
in the market, and subsequently, educating the customers about some
of the products that are good for human consumption.
2. Provides guidelines and rules that must be followed by all the agents
of the real estate.
3. They ensure that rules and regulations are followed to the latter by
both the investors and customers, hence enhancing fair competition
between different investors.
4. They control company’s monetary values, therefore, ensuring that
customers and entrepreneurs are entitled to the same rights, privileges
and freedoms.
5. Ensures that the rights of the tenants are not violated by controlling
the amount of money that is paid for a certain house that the tenant has
rented.
Question 2 In property management, there are a number of different types of
tenancies other than residential tenancy.
1. Give an overview of another type of tenancy
2. Explain the tenancy agreement that would be signed.
1. The residential park which is associated with the process of outlining explicitly some of
the roles of the park operator.
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2. RLLC Act of 2013
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Question 3 Research the specific legislation that applies to the following types of
tenancies and give an overview of the main legislative requirements of
each; eg: disclosure to tenants, rent increase, term of agreement.
1. Residential Tenancy
2. Retail Tenancy
1. There is a series of processes and guidelines that must be followed in
case the landlord needs to increase the amount of money that’s paid by
tenants.
2. The amount of money that’s paid by tenants cannot be increased in a
period of less than 25 years.
Question 4 1. What are the responsibilities of a property manager to the landlord in
relation to maintaining the condition of the property?
2. What are the responsibilities of the property manager to the tenant,
whilst the tenant is occupying the property?
1. A property manager manages all the tenants at the certain
apartment alongside all the resources that may be available.
2. Property manager assists in providing solutions to all the problems
that are encountered by tenants, for example, providing tenants with
some of the resources that might be missing in an apartment.
Question 5 Your Landlord contacts you to ask for the phone number of his tenant, as
he is going to install new carpet in the lounge room and needs access for
the tradesman to give a quote. He is very insistent that he must get
access asap.
1. What will you do?
2. What legislative requirements will affect your decision?
1. Notify the tenant that the landlord needs to enter his/her apartment.
2. RT Act 2010 section 55 and 57
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Question 6 Choose one of the Divisions in Part 3: “Rights and obligations of
landlords and tenants” from the Residential Tenancies Act
2010 and summarise what the Division refers to.
Ensure that you include the responsibilities of both the tenant and
landlord.
Before entering in the residence of the tenant, landlord must make
prior arrangements including notifying the tenant on the same.
The tenant should not interfere with the normal activities of other
tenants residing in the apartment
Question 7 1. Explain the process and timeframes for terminating a tenant’s
agreement under the following circumstances:
 Non payment of rent
 End of the fixed term
2. Explain the tenant’s responsibilities when they need to terminate their
lease during the fixed term of the agreement. (if the break lease clause is
included)
1.
2.
Question 8 1. When must receipts for rent be issued?
2. What specific information must be present on a rent receipt?
1. When the tenant has given out the rent
2. The name of the property manager or the landlord
The name of the tenant
Date when payment was made
The amount of money that has been paid by the tenant.
Location of tenant’s residence, for example, address information.
Question 9 1. At the end of the month the agency will disburse funds to their
landlords. What specific income and expenditure would be noted on
the end of month statement?
1.
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2. Explain the process you would undertake on a day to day basis to
ensure all of the information is correct on the end of month statement.
2.
Question 10 1. What are the documents that are needed before an agent can promote
a property for sale?
2. What is the Section and name of the legislation that outlines this
requirement?
1.
2.
Question 11 1. Explain the key differences between Joint Tenants and Tenants in
Common.
2. Explain the key differences between Torrens Title and Strata Title
property.
1. The core difference between Joint Tenants and Tenants in Common
emerges during the death of the tenants. For instance, to begin with
the Joint Tenants, interests of the diseased are given to the remaining
tenant. On the other hand, the concept of remaining tenant has not
been identified basing on the Tenants in Common.
2. In Torrens title, both the land and apartments are perceived to be
owned by the buyer while basing on strata title, the buyer owns the
building only without the land.
Question 12 1. Explain what information is contained in a Certificate of Title.
2. Explain how encumbrances affect the title?
3. Give an example of one type of encumbrance and what effect it would
have.
1. The name of the person that possess the given property.
The kind of the property that is possessed.
The name of the possession.
Relevant government official’s signature.
The date certificate was given.
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2. The following are some of the ways through which the title is
affected be encumbrances:
This grants other people some controls over the property rather than
the property owner.
3. Judgement Liens: This restricts and limits property owner’s freedom
of managing and controlling the property
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Question 13 A purchaser and a vendor have exchanged contracts with a 5 day cooling
off period, answer the following questions:
1.What is the deposit amount required on exchange of contracts?
2.Where is this money deposited and within what timeframe?
3.At what point are we allowed to disburse the deposit held in the trust
account to the vendor of the property?
4.What document is required prior to disbursement of deposit?
1. Deposit is 10% of the total amount
2. The money is kept by one of the solicitors until the total amount has
been paid
3. The completion period does not exceed 10 days.
4. The schedule 1 and the sale agreement documents are required.
Question 14 1. What are the essential elements, as prescribed in legislation, of a valid
agency agreement? (Refer to Property Stock and Business Agents
Regulations 2014 Schedule 7)
1. An agency agreement must be in accordance with schedule 7 to
schedule 14 alongside section 55 of the NSW act.
Some of the important elements includes the following: well-informed
groups, licit objectives, written agreement and common views
2. How would you ensure that you do not lose your entitlement to
commission and/or expenses?
2. This is achieved by making sure that the contract form has been
signed properly.
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Question 15 Explain the features, including advantages and disadvantages of opening
an agency, under the following types of ownership:
1. Sole Trader
2. Partnership
3. Corporation (Company)
1. Advantage; In sole trader agency, massive profit is generated since
the profit is not shared between a group of traders. Besides, decisions
are made faster as it does not involve consultations.
The disadvantage: The sole trader agency can make a poor
decision, therefore, affecting smooth running of an organization
or the firm. Also, the sole trader agency can suffer alone incase
the business has resulted in some losses.
2. Advantages: In partnership, several agencies can merge, and
afterwards, associate with IPAA in NSW, therefore, increasing the
chances for improvement. Also, business partners suffer as a
group in case there are losses that are incurred in the company.
Disadvantage: The major limitation of partnership is that the
chances of breaking business rules are very high, hence
interfering with smooth running of the business. Accumulated
profit is shared between the traders, therefore, leading to
disagreements in case the sharing formula was not described
explicitly in advance.
3.
Question 16 If you were looking for information about the supervision requirements of
the licensee in charge of the agency, (as required under the Property
Stock and Business Agents Act), what would you do to find the
information?
1. The contact details can be used to acquire more information about
supervision requirements, for example, the number [phone] can be
used.
2. Explain step by step how you would take to access this information
from the web.
2. The guidelines below must be followed to obtain some information
regarding to the website:
In the google search engine, enter the following “Property, Stock and
Business Agents Act 2002, s 32(4) for NSW fair trading, then the whole clause will
appear. All the guidelines and information regarding the act is given here."
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3. Which Section of the Act relates to supervision requirements?
3. This is section 32 sub section 4 of the property, stock and business
agents acts the year 2002.
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