Part 1

Understanding legal principles and accessing information about current legislation helps employees of Phantom Realty western Australia remain up to date with legal requirements and ethical conduct standards. The below guide will help you to understand how to read legislation. https://www.legislation.gov.au/content/readlegislation

1. Select the correct definition for each element relevant to reading legislation.

Key Components of Legislation Definition

1. Acts

a. Subsidiary legislation that are guidelines that dictate how the provisions of the Act are applied.

b. Is a supplementary document attached, to the end of writing?

c. Usually found at the back of an Act that may contain lists or forms or provisions that do not easily fit into the earlier portions of the Act.

d. Legislation passed by Parliament that can only be amended by another Act of Parliament

2. Regulations

a. Subsidiary legislation that are guidelines that dictate how the provisions of the Act are applied.

b. A change to legislation to allow bills to be improved or altered.

c. Usually found at the back of an Act that may contain lists or forms or provisions that do not easily fit into the earlier portions of the Act.

c. Is a supplementary document attached, to the end of writing

3. Amendments

a. An industry code ensuring compliance with an agreed upon set of objectives that benefits workers, employers and consumers.

b. A change to legislation to allow bills to be improved or altered. These must be tabled in Parliament.

c. Legislation passed by Parliament that can only be amended by another Act of Parliament.

d Usually found at the back of an Act that may contain lists or forms or provisions that do not easily fit into the earlier portions of the Act.

e. Subsidiary legislation that are guidelines that dictate how the provisions of the Act are applied.

f. An industry code ensuring compliance with an agreed upon set of objectives that benefits workers, employers and consumer

4. Mandatory Codes of Practice

a. Legislation passed by Parliament that can only be amended by another Act of Parliament.

b Subsidiary legislation that are guidelines that dictate how the provisions of the Act are applied.

c. A change to legislation to allow bills to be improved or altered. These must be tabled in Parliament.

d. An industry code ensuring compliance with an agreed upon set

5. Schedules

Usually found at the back of an Act that may contain lists or forms or provisions that do not easily fit into the earlier portions of the Act.

Legislation passed by Parliament that can only be amended by another Act of Parliament.

A change to legislation to allow bills to be improved or altered. These must be tabled in Parliament.

An industry code ensuring compliance with an agreed upon set of objectives that benefits workers, employers and consumers.

6. Appendices

Subsidiary legislation that are guidelines that dictate how the provisions of the Act are applied.

Legislation passed by Parliament that can only be amended by another Act of Parliament.

Usually found at the back of an Act that may contain lists or forms or provisions that do not easily fit into the earlier portions of the Act.

Is a supplementary document attached to the end of writing.

2. Select the correct definition for each element relevant to the structure of legislation. Structure of legislation Part and Purpose

1. Title

The most important guide to the different areas covered by the Act. They are numbered in a sequence throughout the whole Act. Sub division and section numbers have two elements, the first being the division number.

Usually numbered and is a distinct portion inside the original part. Can be read as sub part to the main section to give a better explanation of each and everything covered by a particular section.

Preliminary part of a particular statute that designates the name by which that act is known.

Supplementary documents or forms, usually found at the end of an Act

2. Commencement

Words prefixed to the start of sections of Acts of Parliament that give you a general indication of the contents of the provisions.

States when the Act commences or comes into action.

The most important guide to the different areas covered by the Act. They are numbered in a sequence throughout the whole Act. Sub division and section numbers have two elements, the first being the division number.

Deals with different aspects of the legislation's subject matter, may be divided into divisions and/or subdivisions

3. Application

States when the Act commences or comes into action.

States what the part or division applies to.

A section containing definitions of various words or phrases used in the Act.

Preliminary part of a particular statute that designates the name by which that act is known.

4. Table of provisions (Contents)

Provides some idea of how the Act is structured and will assist the reader to find certain parts.

States when the Act commences or comes into action.

Words prefixed to the start of sections of Acts of Parliament that give you a general indication of the contents of the provisions.

A section containing definitions of various words or phrases used in the Act.

5. Parts and sections

Numbered division with a short description of the subject concerned allowing sections to be grouped according to their subject.

Supplementary documents or forms, usually found at the end of an Act.

Deals with different aspects of the legislation's subject matter, may be divided into divisions and/or subdivisions.

Words prefixed to the start of sections of Acts of Parliament that give you a general indication of the contents of the provisions.

6. Definitions

A section containing definitions of various words or phrases used in the Act.

Usually numbered and is a distinct portion inside the original part. Can be read as sub part to the main section to give a better explanation of each and everything covered by a particular section.

The most important guide to the different areas covered by the Act. They are numbered in a sequence throughout the whole Act. Sub division and section numbers have two elements, the first being the division number

Preliminary part of a particular statute that designates the name by which that act is known.

7. Headings

Supplementary documents or forms, usually found at the end of an Act

. Numbered division with a short description of the subject concerned allowing sections to be grouped according to their subject.

Provides some idea of how the Act is structured and will assist the reader to find certain parts.

Words prefixed to the start of sections of Acts of Parliament that give you a general indication of the contents of the provisions.

8. Parts

Deals with different aspects of the legislation's subject matter, may be divided into divisions and/or subdivisions.

Usually numbered and is a distinct portion inside the original part. Can be read as sub part to the main section to give a better. explanation of each and everything covered by a particular section.

Provides some idea of how the Act is structured and will assist the reader to find certain parts. States when the Act commences or comes into action

9. Divisions and sub divisions

Supplementary documents or forms, usually found at the end of an Act.

The sections within a Part of an Act. In the hierarchy of groupings directly follows Parts.

States what the part or division applies to.

Usually numbered and is a distinct portion inside the original part. Can be read as sub part to the main section to give a better explanation of each and everything covered by a particular section.

10.Clauses and subclauses

Supplementary documents or forms, usually found at the end of an Act.

A section containing definitions of various words or phrases used in the Act.

May specify provisions for correct working of the Act, and list repealed Acts and amendments.

Words prefixed to the start of sections of Acts of Parliament that give you a general indication of the contents of the provisions

3. Select the correct definition for each element relevant to the legal framework.

Legal framework

1. Common Law

A written law produced by parliament which originates from decisions made in other courts.

The separate body of law, which supplements, corrects and controls the rules of common law.

The legal enforcement of promises that were made as part of a bargain freely entered into, forming a legal relationship called a contract.

The law made by the courts by means of the decisions they make in the cases they decide.

2. Contract Law

The legal enforcement of promises that were made as part of a bargain freely entered into, forming a binding agreement.

The separate body of law, which supplements, corrects and controls the rules of common law.

A written law produced by parliament which originates from decisions made in other courts.

The law made by the courts by means of the decisions they make in the cases they decide.

3. Equity Law

The law made by the courts by means of the decisions they make in the cases they decide

. Supplements, corrects and controls the rules of common law. It helps courts to deal with unconscionable behavior and achieve justice.

The legal enforcement of promises that were made as part of a bargain freely entered into, forming a legal relationship called a contract.

A written law produced by parliament which originates from decisions made in other courts.

4. Statute Law

a. A written law enacted by the legislative branch of a state, territory or Federal government.

b. The separate body of law, which supplements, corrects and controls the rules of common law.

c. The legal enforcement of promises that were made as part of a bargain freely entered into, forming a legal relationship called a contract.

d. The law made by the courts by means of the decisions they make in the cases they decide.

4. Select the correct definition for each element relevant to reading rules for interpreting legislation. Reading Rules for Interpreting legislation in western Australia

1. Context

Takes into consideration three factors to statutory interpretation, the language of the provision, the context in which the language is used and the purpose of the legislation or statutory scheme in which the language is found. The meaning of a word of an act is understood with reference to the words which are in immediate connection to it.

The basis of all court decisions in relation to statues. The judges rely on the exact wording of the statute for the case, they do not interpret the meaning.

Is a modification of the literal rule to be used to avoid an absurd outcome.

2. Plain meaning/ literal rule

This rule uses common law to determine how the statute is interpreted and gives judges the most discretion of all.

The ordinary and natural meaning of the wording.

Is a modification of the literal rule to be used to avoid an absurd outcome.

This rule uses common law to determine how the statute is interpreted and gives judges the most discretion of all.

3. Golden rule

Is a modification of the literal rule to be used to avoid an absurd outcome.

The meaning of a word of an act is understood with reference to the words which are in immediate connection to it.

This rule uses common law to determine how the statute is interpreted and gives judges the most discretion of all.

The basis of all court decisions in relation to statues. The judges rely on the exact wording of the statute for the case, they do not interpret the meaning.

4. Mischief rule

Takes into consideration three factors to statutory interpretation, the language of the provision, the context in which the language is used and the purpose of the legislation or statutory scheme in which the language is found. When meaning is ambiguous the court will give an interpretation to remedy the defect.

The basis of all court decisions in relation to statues. The judges rely on the exact wording of the statute for the case, they do not interpret the meaning.

The meaning of a word of an act is understood with reference to the words which are in immediate connection to it.

5. Purposive approach

Takes into consideration three factors to statutory interpretation: the context purpose and history.

The basis of all court decisions in relation to statues. The judges rely on the exact wording of the statute for the case, they do not interpret the meaning.

The meaning of a word of an act is understood with reference to the words which are in immediate connection to it.

This rule uses common law to determine how the statute is interpreted and gives judges the most discretion of all.

5. Select the correct definition for each element relevant to aids for interpreting legislation in western Australia.

Aids for Interpreting legislation in western Australia.

1. External aids

a. Acts are pieces of statutory legislation passed by parliament. Regulations are subordinate to Acts and aim to aid a person to apply the principles of the primary Act. Underneath Acts and Regulations then sits formal national guidance and often is called codes of practice.

b. Interpretation sections of the Act, which state the meaning of words used in the Act which may help make the meaning clearer.

c. If a person may do something under a law, the person has a discretion about carrying out the action. If a person must do something, the person has no discretion and are required to carry out the action. The current drafting practice is to use the term "must" instead of 'should" to express a requirement, although "should" is still found in some older legislation.

d. Includes previous Acts of Parliament on the same topic, earlier case law, dictionaries of the time, and the historical setting all of which may help put an Act into context.

2. Internal aids

a. The formal and informal agreed-upon ways we use language and assume expressions from grammar.

b. Often the term "includes" will not otherwise be defined in the law, so the ordinary meaning will apply, with the particular things identified either expanding or limiting the ordinary meaning or clarifying it.

c. As per the Acts Interpretation Act 1901, Rule 23, Rules as to gender and number in any act (a) words importing a gender include every other gender.

d. Interpretation sections of the Act, which state the meaning of words used in the Act which may help make the meaning clearer.

3. Language, conventions and expressions

a. Often the term "includes" will not otherwise be defined in the law, so the ordinary meaning will apply, with the particular things identified either expanding or limiting the ordinary meaning or clarifying it.

b. As per the Acts Interpretation Act 1901, Rule 23, Rules as to gender and number in any act (a) words importing a gender include every other gender.

c. The formal and informal agreed-upon ways we use language and assume expressions from grammar.

d. Interpretation sections of the Act, which state the meaning of words used in the Act which may help make the meaning clearer.

4. Gender

a. Often the term "includes" will not otherwise be defined in the law, so the ordinary meaning will apply, with the particular things identified either expanding or limiting the ordinary meaning or clarifying it.

b. As per the Acts Interpretation Act 1901, Rule 23, Rules as to gender and number in any act (a) words importing a gender include every other gender.

c. Interpretation sections of the Act, which state the meaning of words used in the Act which may help make the meaning clearer.

d. The formal and informal agreed-upon ways we use language and assume expressions from grammar.

5. Hierarchy

a. Acts are pieces of statutory legislation passed by parliament. Regulations are subordinate to Acts and aim to aid a person to apply the principles of the primary Act. Underneath Acts and Regulations then sits formal national guidance and often is called codes of practice.

b. Interpretation sections of the Act, which state the meaning of words used in the Act which may help make the meaning clearer.

c. Includes previous Acts of Parliament on the same topic, earlier case law, dictionaries of the time, and the historical setting all of which may help put an Act into context.

d. The formal and informal agreed-upon ways we use language and assume expressions from grammar.

6. Includes

A. Often the term "includes" will not otherwise be defined in the law, so the ordinary meaning will apply, with the particular things identified either expanding or limiting the ordinary meaning or clarifying it.

B. Interpretation sections of the Act, which state the meaning of words used in the Act which may help make the meaning clearer.

C. includes previous Acts of Parliament on the same topic, earlier case law, dictionaries of the time, and the historical setting all of which may help put an Act into context.

D. Acts are pieces of statutory legislation passed by parliament. Regulations are subordinate to Acts and aim to aid a person to apply the principles of the primary Act. Underneath Acts and Regulations then sits for

7. May, should and must

A. Includes previous Acts of Parliament on the same topic, earlier case law, dictionaries of the time, and the historical setting all of which may help put an Act into context.

B. Interpretation sections of the Act, which state the meaning of words used in the Act which may help make the meaning clearer.

C. If a person may do something under a law, the person has a discretion about carrying out the action. If a person must do something, the person has no discretion and are required to carry out the action. The current drafting practice is to use the term "must" instead of 'should" to express a requirement, although "should" is still found in some older legislation.

D. The formal and informal agreed-upon ways we use language and assume expressions from grammar.

6. Select the correct definition for each element relevant to sources of legislation western Australia.

Sources of legislation in western Australia.

1. Select the correct website to source downloadable versions of relevant WA legislation.

www.sat.justice.wa.gov.au

www.legislation.wa.gov.au

www.business.gov.au

www.accc.gov.au

3. Select the correct website to source information in regards to competition and consumer law:

www.landgate.wa.gov.au

www.accc.gov.au

www.sat.justice.wa.gov.au

www.firb.gov.au

Assume that you are working at Phantom Realty western Australia. Ethical practice and a sound understanding of the legal framework impacting on real estate practitioners is integral to maintaining agency compliance.

7. Demonstrate your understanding of current legislation and ethical conduct standards by selecting the best possible answer for each of the following.

REBA Act

Clarifies anything prescribed in the Real Estate and Business Agents Act.

Regulates the collection, use and disclosure of personal information.

Regulates those who charge fees to act for others in transacting real estate or business sales, or in leasing property in WA.

Prohibits businesses from misusing market power, price fixing and anti-competitive arrangements.

REBA Regulations

Regulates and promotes equality of opportunity and prevention of discrimination.

Clarifies anything prescribed in the Real Estate and Business Agents Act.

Regulations that set out owner and tenant rights and responsibilities in residential tenancies.

Provides for the promotion, and enforcement of workplace health and safety.

REBA Code of Conduct

Prohibits businesses from misusing market power, price fixing and anti-competitive arrangements.

Governs the subdivision of land and buildings in WA to allow for creation of separately titled lots that share a service.

Encourages awareness of environmental responsibilities and implementation of practices that contribute to a sustainable future.

Dictates how agents and representatives must conduct business on a day to day basis

ACL

Regulates those who charge fees to act for others in transacting real estate or business sales, or in leasing property in WA.

Prohibits businesses from misusing market power, price fixing, anticompetitive arrangements and market sharing.

Regulates and promotes equality of opportunity and prevention of discrimination.

Regulations that set out owner and tenant rights and responsibilities in residential tenancies.

WHS Act

Provides for the promotion, and enforcement of workplace health and safety.

Lays down specific controls over planning at a metropolitan and local level.

Regulates the collection, use and disclosure of personal information.

Regulates a WA state tax, commonly known as "stamp duty".

Equal Opportunity Act

Regulates a WA state tax, commonly known as "stamp duty".

Supplementary to the Codes of Conduct determined by the REBA Act 1978 to which all REIWA members and sales representatives must conform.

Regulates and promotes equality of opportunity and prevention of discrimination.

Regulates that set out owner and tenant rights and responsibilities in residential tenancies

Fair Work Act

Governs the employee/employer relationship in Australia.

Governs the subdivision of land and buildings in WA to allow for creation of separately titled lots that share a service.

Governs licensing to be an auctioneer and some aspects of how auctions are conducted.

Regulates a WA state tax, commonly known as "stamp duty".

Strata Titles Act

Regulates a WA state tax, commonly known as "stamp duty".

Governs the subdivision of land and buildings in WA to allow for creation of separately titled lots that share a service.

Supplementary to the Codes of Conduct determined by the REBA Act 1978 to which all REIWA members and sales representatives must conform.

Provides for the promotion, co-ordination, administration and enforcement of workplace health and safety.

Auction Sales Act

Regulates and promotes equality of opportunity and prevention of discrimination.

Clarifies anything prescribed in the Real Estate and Business Agents Act.

Regulates that set out owner and tenant rights and responsibilities in residential tenancies.

Governs licensing to be an auctioneer and some aspects of how auctions are conducted.

REIWA Code of Practice

Regulates the collection, use and disclosure of personal information.

Regulates those who charge fees to act for others in transacting real estate or business sales, or in leasing property in WA.

Prohibits businesses from misusing market power, price fixing, anticompetitive arrangements.

Supplementary to the Codes of Conduct determined by the REBA Act 1978 to which all REIWA members and sales representatives must conform.

Building Energy Efficiency Disclosure Act

Promotes the disclosure of information about the energy efficiency of buildings, and for related purposes.

Prohibits businesses from misusing market power, price fixing and anti-competitive arrangements.

Regulates those who charge fees to act for others in transacting real estate or business sales, or in leasing property in WA.

Governs licensing to be an auctioneer and some aspects of how auctions are conducted.

Duties Act 2008

Regulates owner and tenant rights and responsibilities in residential tenancies.

Provides for the promotion, co-ordination, administration and enforcement of workplace health and safety.

Regulates a WA state tax, commonly known as "stamp duty".

Regulates those who charge fees to act for others in transacting real estate or business sales, or in leasing property in WA.

Planning and Development Act 2005

Lays down specific controls over planning at a metropolitan and local level.

Regulates a WA state tax, commonly known as "stamp duty".

Supplementary to the Codes of Conduct determined by the REBA Act 1978 to which all REIWA members and sales representatives must conform.

Regulates and promotes equality of opportunity and prevention of discrimination.

8. Access a copy of the Code of Conduct in western Australia (http://www.legislation.wa.gov.au/legislation/statutes.nsf/law_s47202.html) and identify which rule of the code applies to the following situations.

Scenario

which of this is the Applicable Rule

1. A real estate representative attempts to persuade a client to sell their property to the real estate representative's friend, so that the friend can quickly flip the house at a much higher price.

3

4

5

6

2. The property manager brings you a new management authority and advises you that the lessor of the property is their brother.

8

9

10

11

3. A real estate representative just starting in the industry creates fake client testimonials to try and build their reputation.

8

9

10

11

4. A real estate representative is aware that there is a development occurring in the area, that could influence a buyer's decision to purchase a property but does not disclose the information.

22

23

24

25

5. A prospective client requests a market appraisal of their property, the real estate agent only provides a verbal appraisal price.

23

24

25

26

9. Check your interpretation of the ethical conduct standards in the following scenarios using the western Australia Code of Conduct

Scenario and Possible Responses

1. You are appointed as a property manager to manage a commercial lease, your spouse is a director of a company interested in leasing the building.

You must complete written disclosure.

This is not an issue and does not require any action.

Check with your agency policy.

You cannot discriminate on marital relationship.

2. Your client is experiencing financial hardship and is willing to sell their property below market price. You disclose this information to potential buyers.

This is not an issue and does not require any action.

Check with your agency policy.

Refer to the Privacy Act.

You can not disclose this information.

3. You have received two offers on a property that you have listed. The first offer is for $410,000 and has been received from another real estate representative requesting a conjunctional agreement. The second offer is for $400,000 and is from a buyer that you are dealing with. You do not need to present both offers to the seller's.

This is not an issue and does not require any action.

Check with your agency policy.

You must present all offers to your clients.

Only present one offer.

4. A close friend has requested that you negotiate on their behalf to purchase a property that is listed for sale by the owners and not through a real estate agency. Your friend offers to pay you a secret commission for your help.

This is not an issue and does not require any action.

Check with your agency policy.

You cannot accept a secret commission.

Refer to the Privacy Act.

10. name each regulator/industry body to the correct description.

Regulators / Industry Bodies in western Australia.

The real estate regulator in Western Australia. Interprets and enforces compliance with may WA laws, including real estate industry laws such as the REBA Act and the Residential Tenancies Act.

An independent Commonwealth statutory authority whose role is to enforce the Competition and consumer Act 2010 and a range of additional legislation, promoting competition, fair trading and regulating national infrastructure for the benefit of all Australians.

Issues guidelines to assist agencies and organisations to comply with the Privacy Act in western australia.

The peak body for the real estate profession in Western Australia.

The peak body for the real estate profession in Western Australia.