CPPREP4002 Access and Interpret Ethical Practice in Real Estate

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ASSESSMENT TASK 4 – Case Studies

Consider one  (1) of the cases provided below and respond in the table provided below. Your response must address the following.

  1. A description of unethical practice:

e.g., What is the agent doing wrong? How are they breaking the law? In what way is the behaviour morally incorrect?

  1. How the practice relates to consumer protection.

e.g., Explain how the practice might subject a consumer (customer/client) to scams, unsafe products, and unfair treatment from businesses.

  1. An explanation of standards and codes of conduct or practice that relate to the outcome of the case.

e.g., Explain which standards, laws or rules/codes of conduct are affecting the outcome of the case:

  • Legislation relevant sections
  • Conduct codes
  1. Suggested best practice in agency/procedures:

e.g., Suggest other standards or rules of conduct that may apply to the practices outlined in the case, list other standards, laws or rules/codes of conduct not mentioned in the case that may have a bearing on the practice involved.

  1. Resources that can assist in creating best practice guidelines:

Give examples of available options to assist with the development of ethical practice in an agency to avoid the unethical practice outlined in this case.

  • How do you suggest an agency could use available resources to protect themselves and to prevent this kind of practice? This may include specialist advice.

You are required to:

  1. Choose a case from the three options listed below.
  2. Respond to the case study you have selected, reviewing the legislation and codes of conduct that may relate to the case.

Case 1: Knowingly employing a disqualified person

Case summary* Wendy Alberts the sole director and secretary of Scali Real Estate Sales.Wendy was present at a hearing at which her father, Clarence, was made permanently ineligible to hold a real estate agent’s licence or hold a certificate of registration.

Despite knowing about her father’s disqualification, Ms Alberts employed him in September 2019.

Twelve and fifteen months later, Clarence Alberts was present at three auctions, where he acted in a manner consistent with a real estate salesperson. He also held a company credit card and remained as a signatory on the company accounts.

He was found guilty of contempt of the orders made against him in 2019.

Wendy Alberts and Scali Real Estate Sales accepted that they had failed to comply with real estate agent laws by employing Mr Alberts following his permanent disqualification.

Case 2: Stove repairs

Case summary* In this case, the tenant had notified the landlord’s agent of the need for repairs to the stove in the entry condition report in December. The agent was notified again in a letter from the tenant in January.The landlord did not approve the repair of the stove until July, seven months after the initial notification of the need for repairs (entry condition report).

The Tribunal found that there had been a breach of the residential tenancy agreement by reason of the landlord’s failure to carry out repairs within a reasonable timeframe.

Case 3: Trust account funds misuse

Case summary* A real estate agent has been reprimanded for breaching his duties under his state’s property legislation Act and Regulations.Under investigation, the agent agreed that, among other things, he did not:

1.    record information in:

o   a trust account cash receipts journal

o   trust ledger accounts

2.    have his trust accounts audited within the required timeframe

3.    keep money in the trust account until it was paid to the person entitled to it

4.    at all times, act fairly and honestly in his capacity as an estate agent

He also agreed he had engaged in conduct detrimental to the real estate industry

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