CPPREP4002 Access and Interpret Ethical Practice in Real Estate – Short Answer Questions

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ASSESSMENT TASK 2 – Short Answer Questions

Please review the questions below and answer in 200 words / 1-2 paragraphs or less (unless advised otherwise).

1. When considering ethical practice/standards in real estate…

    1. Where will agents find standards governing the conduct of real estate practitioners?
    2. List at least five (5) areas/activities involved in running a property agency that are covered by these standards.
    3. What disciplinary action or penalties can be imposed for unethical practice?

2. Which authority in your state or territory guides agents when dealing in property transactions? Briefly explain their role and function.

3. Considering ethical standards for real estate, answer the following.

  1. What does “acting ethically” mean, generally?
  2. Explain what it means to act ethically in a work environment.

4. Looking at real estate practice, choose three (3) of the following and explain how an agent can apply ethical practice for each that you choose. You are required to give your own response.

You should consider regulatory guidelines and how you will implement best practice for yourself as an agent and your agency.

  1. client protection
  2. client focus
  3. fairness
  4. honesty
  5. respect
  6. clear communication
  7. professional courtesy
  8. confidentiality, security of information and privacy

5. When making decisions regarding operations in a real estate/property transaction, sometimes a client may request a particular action that is out of line with regulatory requirements. You need to be ready for these situations. Complete the table below, outlining:

  1. Information source – ensuring action is within regulatory guidelines i.e., checking you are up to date with your information – where to source correct information
  2. Change or action required – what is not correct?
  3. Method to advise client of corrections required – telephone / in writing / face to face
    What advice is required/would you suggest?

6. Describe briefly what “risk” is.

7. Identify the various parties who can be exposed to risk as a result of agency activities. List at least six (6) parties.

8. Examine risks that may occur in real estate activities and list three (3) risks for each of the following groups.

    1. risk to consumer
    2. risk to the agency
    3. risk to the industry
    4. personal risk

You are required to think about real estate/property operations and the risks that may occur. Give your own ideas.

For example, a risk to a consumer may be loss of opportunity to purchase a property because they thought payment of a holding deposit of was enough to secure the sale – the agent should have provided a receipt and provided in writing details of what a “holding” deposit meant.

9. Looking at the definition of fraud and real estate activities:

    1. Consider, discuss, and give examples of where fraud may exist in terms of:
      1. Agency and agent operation and consumer protection
      2. Financial dealings
      3. Property ownership
    2. How might each of the above impact on…? (Give your own thoughts as well as the legal aspects)
    1. The agency/agent
    2. The consumer

 

10. Referring to the property legislation (Act and Regulations) for your state or territory, consider the following conduct requirements, penalties, and general impact on the agency in terms of consumer perception and general operation.

Complete the following table and by filling the sections relating to:

  1. Section of Act/Regulation that relates to activity
  2. Penalty for action as per act and regulation
  3. Suggestions of possible impact on agency/agent

11. Look at the following and explain:

    1. The impact on agency activity, and
    2. How it may assist in developing ethical practices/procedures for agency use.
      1. Property legislation in your state or territory
      2. Discrimination law
      3. The Australian Communications and Media Authority (ACMA)
      4. The Do Not Call Register (DNCR)
      5. The Australian Consumer Law (ACL) and the Australian Competition and Consumer Commission (ACCC)

12. Consider privacy law and the responsibility of real estate agents and agencies. Answer the following:

    1. As a business owner, what is your responsibility to clients?
    2. What information can a real estate agent collect?
    3. Before a real estate agent collects personal information, what should they let a client/customer know about the information they collect?
    4. Under what circumstances can an agent disclose personal information collected?

13. For best ethical practice, agencies are required to follow set guidelines to ensure agency compliance.
For the following points, look at the general conduct requirements provided in property legislation, and complete the table below.

  1. Advise what is required for compliance.
  2. Suggest a best practice procedure to assist with compliant operation.
  3. Suggest review process to determine success of procedure.

14. Communication with clients must be clear and easy to retrieve. This will assist the client to understand the complex issues when dealing in real estate/property transactions.

Discuss what you think best ethical practice is for ensuring:

  1. information is clearly communicated on consumer protection issues, such as agency agreements or new tenancies including provision of required information
  2. complaints process – outline a general complaint handling process

15. Communication with customers, clients and external agencies/parties or bodies may require different approaches depending on the nature of the transaction.You are required to find a possible solution and communicate accordingly to three (3) of the following scenarios. You may find it helpful to quote legal requirements in your responses.

Address the following scenarios advising what you feel is:

  1. The best method of communication for the situation – it may be email, verbal, face to face, letter, telephone call, SMS message or a combination (some scenarios this may be obvious).
  2. How you will respond – you are required to provide the content of your response.

Scenario a. 

A good, reliable tenant has approached the agency regarding a problem with the newly planted grass on their property which is not looking so good. The tenant has knowledge of the problem and has suggested a fix – tenant’s application states they are a green keeper. The issue is not a result of the action of the tenant.

Your first reaction is to be annoyed and on speaking with the landlord, who is happy with the tenant, they are happy for the tenant to resolve the issue as they are the expert.
What steps will you take and how will you communicate this to tenant and landlord?

Scenario b. 

A property enquiry has come in for a house for sale where there has been a lot of interest, with one party showing intent to purchase. The new enquirer is keen to inspect the property ASAP.

Do you not worry as it looks like the property will sell, or do you arrange an inspection?

What will you do and how will you communicate this with all parties?

Scenario c. 

A prospective purchaser’s solicitor has approached you to negotiate the price of a property. Money is tight for the buyer who is suggesting a further reduction of $2000. The vendor who is happy enough but is also looking to off-load his laundry white goods. There may be a solution in this scenario.

What suggestions do you have and how will you communicate to all parties, keeping in mind this involves the final pricing and inclusions for the property sale.

Scenario d.

A purchaser has been negotiating to purchase one of the agency’s listings, only to find out that they have been gazumped after spending money on building and pest inspections. This is one unhappy and upset customer and he wants some answers now! Only an expression of interest payment has been made by this buyer.

What will you say? If you do not have the relevant experience, how would you handle this?

Scenario e.

A tenant emails reporting the property landlord keeps “popping in” to “see how things are going”. This is happening every 2-3 weeks. There has been no special arrangement agreed to in the tenancy agreement.
How will you deal with this?

Scenario f.

Your agency has just had great reviews in the local paper and is very busy.
A client with a rental property has arrived and wants to sign up his property for lease with your agency today. The property manager who would normally handle this property is busy and has appointments following for at least 2 hours. However, the new property manage is available right now.

How do you suggest this might be handled best to secure business and to address internal office harmony?

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