Real Estate Sales Assignment - Understanding Real Estate Sales Process

This assignment solution addresses various aspects of real estate sales, starting with the definition of private treaty sales and the protections offered to agencies and consumers. It explains encumbrances, the difference between Torrens and Strata titles, and the importance of building trust and relationships with buyers. The assignment details the benefits for both agents and sellers, the necessary knowledge and assessment skills for agents, and the key stakeholders involved in the sales process. It also covers effective communication techniques, including active listening and questioning methods. Furthermore, it explores buyer motivations, the advantages of open inspections, and the steps involved in preparing a property for sale. The solution also addresses potential issues in the final inspection and strategies to prevent delays, along with the essential elements of a valid contract, including the basis of sale, conditions of void, voidable, and unenforceable contracts, and methods for resolving disputes. Finally, it lists various professionals involved in the real estate process and the essential qualities for negotiation, along with associated costs and required documentation.

1. Sale by private treaty refers to the sales that occurs in case when the property is been listed
for the sales at asking price under which buyer makes offer to an agent, thereafter who
presents an offer to seller who decide on whether to accept an offer or not.
2. As per rule 15 of PSBA regulation agency and consumers can be protected against
misleading advertising in private treaty sale. Moreover, agency and consumer can inspect
the property after seeing an advertisement so that they can be protected from false
representation.
3. Encumbrance is the claim against the property by the party that is not the owner. For
example- Mortgages, Easements, Property tax liens etc.
4. Torrens title- It means when an individual buys the land, he or she get the Freehold or
Torrens title because purchasing provides with both property and land.
Strata title- It is the title under which an owner owns only the inside unit and not the outside
unit.
5.
 Establishing and building confidence and the trust in an agency and its
representatives
 By making the buyer feels as valued
 Promoting and maintaining an effective relationship with buyer.
6.
a) As an agent I would be getting monetary benefit in form of commission.
Incentive benefits are also gained by me in qualifying the buyer.
b) Seller will earn large amount of profits.
Sale of seller increases.
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He must know the buyer's interest in the property.
Agent must assess the financial condition of the buyer.
He should take care that the buyer is not involved in any illegal or misleading activity.
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 Business associates
 Buyer's agent
 Family member and friends of buyer
 Providers of professional advice that involves accountants, legal representatives, property
advisers etc.
 Spouse or partner
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 Active listening

 Providing an opportunity for seller or the buyer to clarify their understanding of the sales
process
 Soft questioning and seeking feedback from the sellers or buyers to confirm own
understanding of their expectations and needs
 Summarizing and paraphrasing to check understanding of seller or buyer message
 Using appropriate body language
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 Clear questions
 Different question types
 Reflection
 Using silences
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 Buying intentions
 Capacity to purchase
 Financial limits
 Motives
 Needs
 Preferences
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 Sales person and seller can attract large customers at times of open for inspection as in this
time they invite more and more buyers for inspection
 Open for inspection reduces private appointments for sellers which in turn leads to fewer
interruptions and less convenience
 Through open for inspection buyers can enjoys flexibility with respect to their time
 Buyers can schedule inspections for several properties that are of their interest
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a) Cleaning the property
Repairing obvious problems
Spruce up the garden
Arranging the furniture and furnishings artfully
Lock up valuables
b) Ownership papers
Any renovations or modifications made
Information regarding recent inspection of the building

Major property disclosures
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 Appearance
 Active listening
 Body language
 Voice
 Use of support and the promotional materials
 Use of an information technology like virtual tours, online databases and websites
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 Area and environment in which a property is located
 Availability of comparable properties
 Marketing preferences
 Professional skills and resources of agent
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a) Final inspection problems
Bank complications
Late documentation
b)
To prevent final inspection delays, ensuring all the plumbing, electrical fixtures and the gas fixtures
in a good working order prior to final inspection
In order to reduce the risk of the bank complications problems, all the documentation should be
returned as soon as possible so that plenty of time within a contract for the finance approval and
settlement
To avoid late documentation delays, timely information about the special circumstances must be
informed which might making difficult in completing the settlement
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Contract is a legally binding agreement that governs and recognizes the rights and the duties of the
parties to the agreement.
A contract is said as valid if it meets all the important elements or factors that are as follows-
Offer
Acceptance
Consideration

Certainty
Intention to create legal relations
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Basis for sale
Order and specifications
Price of the goods
Payments terms
Delivery
Risk and property
Warranties and liability
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Conditions of Void contracts:
 Illegal matters are involved
 Impossibility of performance
Conditions of Voidable contracts:
 Failure by one or both the parties in disclosing material facts
 Undue influence
 Mistake, fraud or misrepresentation
Conditions of unenforceable contract:
 Lack of capacity
 Duress
 Mistake
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 calling in a third party
 clarifying positions of all parties
 deferring the decisions
 preparing a compromise
 restating the position
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 Accountants
 Conveyancers
 Financiers and financial institution
 Legal advisers
 Licensed settlement agents
 Landlords and managing agents
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 Be strategic and deliberate with words
 Be willing to prepare well
 Have high expectations
 Be patient in listening
 Maintaining integrity
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 Estate agent fees
 Telegraphic transfer fees
 Landlord's cost
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 Declaration of selling agent
 Financial statement to buyer
 Receipt for deposit
 Vendor's settlement and trading statement