Reference no: EM131392582 , Length: word count:1500

Identify Legal and Ethical Requirements of Property Sales to Complete Agency Work

Part 1: Short-answer questions

Question 1: Briefly explain each of the following titles to land (i.e. land tenure ship):

(a) Free hold

(b) Lease hold

(c) Torrens Title

(d) Strata Title

Question 2: Describe three (3) methods that you personally might use to prospect for new listings as a salesperson.

Question 3: When you are listing a property you will need to be able to explain the different methods of sale available to a seller, as well as the advantages and disadvantages of each, so that the seller can assess the best method of sale for their situation.

(a) Using this table below, explain each of the three(3) common methods of sale shown below and provide an example for each of a type of property or type of client circumstances that would be suited to each of the method of sales. Complete the table below to ensure you have covered all parts of this question.

Method of sale	Your description of this type of sale method	Your example of type of property/client circumstances suited to sale by this sale method
Private Treaty
Auction
Tender

(b) Complete the table below by listing one (1) advantage and one (1) disadvantage for each method of sale (from the agents or vendors viewpoint):

Method of sale	One advantage of this method of sale	One disadvantage of this method of sale
Private Treaty
Auction
Tender

Question 4: (a) What is the purpose of a marketing plan for a property for sale?

(b) Describe at least three (3) things that should be contained in a marketing plan for a property for sale.

Question 5: (a) Name the authority that registers land title in your state.

(b) List two (2) things that are contained on a certificate of title to land and why is it important for you to check this information against the agency authority to act/agency agreement?

Question 6: (a) Explain why having effective communication skills is so important when working as a real estate sales representative.

(b) List three (3) different interpersonal communication techniques that you might use when addressing client concerns and dealing with conflict in a real estate sales role. Provide a practical example of when or how you would use each of these each of these techniques.

Question 7: Explain the basic process for receiving, handling and paying out monies if the agent holds the sales deposit in trust as a stakeholder.

Question 8: Name and briefly explain the two (2) different ways a property can be owned under free hold tenure (also known as fee simple tenure), if it is owned by two or more people.

Question 9: (a) What documentation is required from the vendor prior to completing an agency authority to act/agency agreement on behalf of a vendor/seller? (HINT: consider documentation required from the vendor before signing the authority/agreement. This relates to ID and verification of owners/property)

(b) What specific legislative requirements apply in your state for an agency authority to act/agency agreement to be deemed as valid? (HINT: consider any warnings/prompts that must be explained to the vendor. What must the agent do regarding the selling price, commission?)

Question 10: Describe any conditions and guidelines imposed on you by your state's regulatory body, Act and Regulations in relation to giving the seller your estimate of what their property should sell for.

Question 11: List the contractual documents related to the sale of a property in your state.

Question 12: Briefly explain the legislative requirements in your state regarding communicating offers from prospective purchasers to sellers.

Question 13: (a) Explain where in your state's legislation you can locate information about ethical and conduct standards that apply to the activities of real estate salespeople?

(b) In your own words, explain two (2) of the above ethical and conduct standards (identified in part (a)) that apply to working in sales.

Question 14: Name and summarise the sections of your agent state/territory legislation relating to the following areas:

(a) Disclosure of information to prospective purchasers (including disclosure of material fact).

(b) Salespeople or agents obtaining a beneficial interest (such as purchasing a sales property for themselves) and any restrictions imposed, including penalties to agent if they breach these restrictions.

Question15: What information would you record in a sales client/customer database and why? List five (5) items.

Part 2: Case study

James is selling his property through ABC Real Estate Pty Ltd where you work as a salesperson.You have the property listed at $700,000. The agent's sales fee is 3.3% of the selling price, inclusive of GST.

(a) The agency you are employed in as a salesperson has several prospective buyers interested in the property. One of them approaches you privately and offers to pay you (personally) $2,000 if you ensure that they are the successful purchasers of the property, saying that there is no need to let the agency manager or the client know. Can you legally accept this money, explain why or why not? What would the possible legal ramifications be if you accepted this money?

(b) Buyer A submits an offer of $658,000 which the vendor accepts. At what point is the buyer committed to purchase (HINT: consider any cooling off requirements in your legislation)?

(c) The property eventually sells for $658,000. What will ABC Real Estate sales fee be equivalent to in terms of dollars?

(d) At what point will ABC Real Estate be eligible to claim sales commission on James' property?

Part 3: Work project

Part A: Attend an open for inspection for a property for sale through a real estate agent. Record in your assessment submission the details of the inspection: address, time, date, real estate agent etc.

Write a short report describing how the agent proceeded with the open for inspection, for example you should describe:

• How you found out about the Open for Inspection (example, how did the agent market the property).
• How the real estate salesperson conducted the Open for Inspection.
• What marketing materials if any were available at the Open for Inspection?
• What is the most common method of sale of residential properties in this area and why do you believe this is the case?
• Note any Work Health Safety issues eg: fragile or valuable items, risks to physical safety of agents such as trip hazards

Part B: Using the property you are currently living in (whether you own it or lease it):

(a) Suggest the best method of selling the property including your reasoning.

(b) What marketing strategies would you think should be used to market this property, including your reasoning?

Part C: (a) Complete an authority to act/agency agreement for sale of this property.

Date of listing preparation and appointment:

Use date you are completing this assessment

Vendor Details-

Vendor Name: Ms Rashid Nagarajan

Vendor Address: 14/16 Vendor Lane, Vendorville 1234

Vendor Contact: Phone: 3007-8888, Fax: 3007-8889

Vendor Solicitor details-

Solicitor Name: Rowland and Company Lawyers (Attention: Mr. Richard Hadwood)

Solicitor Address: Suite 10, Regis Tower, Park Rd, Somewhere

Solicitor ABN: 12567-776                              

Solicitor Contact: Email: [email protected], Phone: 3007-1234, Fax: 3007-1233

Property being listed for sale-

Property Address: 123 Dunmore Terrace, Somewhere

Property Details: This property is a 3 bedroom brick home with a single lock up garage. The home is listed on the council search as a single detached residential dwelling.

Property Description: Lot 2 on Deposited Plan 18907, County Stanley, Parish Somewhere.

Sale method: Private Treaty

Agent details-

Agent Name: ABC Real Estate Pty Ltd

Trading as: Trusty Real Estate

Agency Address: Shop 2/ 15 Park St, Busy Town

Contact: Phone: 3007-9079, Fax: 3007-9099

Agent ABN: 24561

Corporation License No.: 12345678

Salesperson details-

Salesperson Name: You are the salesperson. Insert your name.

Registration number: 5554- 6621. This is your salesperson registration number.

You are authorised as a salesperson to sign off an agency agreement on behalf of the agency.

Estimated selling price:  $680,000 to 700,000

Listing Price: The owner's instructed listing price is $735,000.

Fees: Use fees that are commensurate with average agent fees in your geographic area/state.

Type of listing: The vendors have agreed to list the property as an exclusive agency for 60 days from the date of appointment. They have also agreed to retain the agent's service with an open listing if the property does not sell within the 60 days.

Start date of authority: Use the date on which you are completing this agreement.

Expenses: The vendor has agreed to invest $3,500 in advertising and promotion. They are also happy for the agent to charge them the cost of a title search. This is estimated at around $15.50.

Agent Disclosure: The agent will be receiving a rebate from the Local Gazette newspaper. The rebate will be a payment of approximately $300 for the advertising placed for this property.

Consumer Guide: Has been provided to the client on XX/XX/20XX (date will be before or on the date the agreement is signed (date that this assessment is completed)).

Advertising and Marketing: Marketing program has been prepared and is attached to Agreement.

Special instruction: There is a security alarm located in the property. Security alarm must be turned off immediately prior to inspections and then turned on again at the end of each inspection. Please see security code details in agency key cupboard.

Conjunctions: Agent is to refer back to client before agreeing to conjunct.

You may assume or use hypothetical information which has not been provided to you above, to complete the agreement.

NOTE: South Australia: As there is a legislative requirement in South Australia to state a figure (e.g. $330,000), rather than a price range, you must refer to the following information before completing this form:https://www.cbs.sa.gov.au/consumers/consumer-advice/buying-or-selling-a-home/selling/

(b) After this agreement has been completed and signed by the parties, where would this agreement need to be stored and how would you ensure client privacy and confidentiality, given the amount of personal information in the documents.

(c) A prospective buyer is interested in the property as an investment. They ask you [the sales agent] if you think it will provide them with a good secure future investment income? What should you say?