Question 01 When considering ethical practice/standards in real estate - a)Where will agents find standards governing the conduct of real estate practitioners? List the various pieces of legislation this refers to. b)List five areas/activities involved in running a real estate agency that are covered by these standards. c)What disciplinary action or penalties can be imposed for unethical practice? Question 02 What authority, in South Australia, guides and regulates agents when dealing in property transactions? Provide an explanation of their roles and functions for the real estate industry. Question 03 Considering Ethical standards for Real Estate answer the following: a)What does "acting ethically" mean generally? b)Explain what is means to act ethically in a work environment. Question 04 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. i.client protection ii.client focus iii.fairness iv.honesty v.respect vi.clear communication vii.professional courtesy viii.confidentiality, security of information and privacy Question 05 When making decisions regarding operations in a real estate/property transaction, sometimes your 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 outlining: a)Information source - ensuring action is within regulatory guidelines i.e. checking you are up to date with your information - where to source correct information. This could include state and/or commonwealth government departments, professional bodies and/or legislation and/or information web pages. b)Change or action required - what is not correct? c)Method to advise client of corrections required - telephone / in writing / face to face What advice is required/would you suggest?

Scenario Information source Change or action required Method of advice Suggested advice A vendor who has agreed to sell their property through your agency has requested you use beach photographs labelled "Minutes to this!" Property is more like a 40-minute walk to the beach, about 3km.

A Landlord has requested their property is not to be leased to people under 25, regardless of income or rental references. They would like this noted in the advertising, so people do not waste time applying or viewing the property.

A friend has approached you (a real estate sales representative) to sell his cousin's property and will give you his cousin's details if you agree to a share in the commission. Your friend is not a licenced or registered real estate agent.

A Landlord has requested details of all parties who view the property listed for lease as they would like to "check out" all the applicants for suitability as tenants. They want this noted in the Management Agreement. Note: Agent should consider the "use" of this information by the Landlord when making any agreement and Privacy obligations

Question 06 Describe briefly "what is risk". Question 07 Identify the various parties who can be exposed to risk as a result of agency activities. List at 6. Question 08 Examine risks that may occur in Real Estate/property activities and list 3 risks for each of the following groups: 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 was enough to secure the sale - agent should have provided a receipt and provided in writing details of what a "Holding" deposit meant. a)risk to consumer b)risk to the agency c)risk to the industry (consider risks from external sources such as the economy which could affect the entire real estate industry) d)personal risk Question 09 Looking at the definition of fraud and real estate activities. a)Consider, discuss and give examples of where fraud may exist in terms of: i.Agency and agent operation and consumer protection ii.financial dealings iii.property ownership b)How might each of the above impact on: Give your own thoughts as well as the legal aspects i.the agency/agent ii.consumer Question 10 Using the property legislation (Act and Regulations) for South Australia 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: a)Section of Act / Regulation that relates to activity b)Penalty for action as per act and regulation c)Suggestions of possible impact on agency/agent

Activity Name of Act or Regulation Section of Act or Regulation Maximum Penalty Agency impact Licensee shares commission with another party who is not licenced Agent offers financial advice to purchaser to influence a property purchase. Agent does not provide a warning (Form R7) to advise that the advice is general, and the purchaser should seek own guidance. Agent fails to disclose to vendor beneficial interest in the sale of a property. For example allowing an "associate" (brother) to purchase the property. Agent advertises a property for sales but fails to include the agency's Registered Land Agent number (RLA number) alongside the agency's contact details in the adverts. Agent has a property for sale and has signed a buyer's agency agreement with another client. Agent collects a commission/fee for both buyer and seller. Agent fails to advise potential buyers a property will have its sea view affected by a near-by approved development. He decides it is better to do nothing (conceal the fact/misrepresentation) as it may affect the price a purchaser may pay for the property. Agency is short staffed; the principal decides to ask a friend to assist with the busy time acting as an agent for only 2 weeks. The friend does not hold a licence or certificate of registration. Agency principal fails to properly manage and supervise business Agency fails to issue a receipt for deposit of property purchase (Trust money) in accordance with legislation

Question 11 Look at the following six points and explain- a)the impact on agency activity; and b)how would you use the following six points in developing and maintaining ethical practices within your agency to ensure agents continue to practice in an ethical manner to deliver high client service standards. i.Property legislation in South Australia a) b) ii.Rules of Conduct a) b) iii.Discrimination law a) b) iv.The Australian Communications and Media Authority (ACMA) a) b) v.The Do Not Call Register a) b) vi.The Australian Consumer Law and The Australian Competition & Consumer Commission (ACCC) a) b)

Question 12 Consider commonwealth Privacy Law and the responsibility of real estate agents and agencies in both sales and property management. Answer the following: a)As a business owner what is your responsibility to clients and consumers when dealing with their information? b)Are there limitations to the information a real estate agent can collect when considering privacy legislation? Explain your answer. c)Before a real estate / property agent collects personal information, what should they let a client/customer know about the information they collect? d)Under what circumstances can an agent disclose personal information collected? Question 13 For best ethical practice agencies are required to follow set guidelines to ensure agency compliance. For the following, look at the Rules of Conduct and general conduct requirements provided in property legislation: a)advise what is required for compliance b)suggest a best practice procedure to assist with compliant operations. c)Suggest a review process to determine the success of the procedure. Complete the table. Activity Compliance requirement Procedure to implement Privacy of information collected during open homes (sale or lease) including: -collection requirements -security of information Suggested review of procedure - when and why? Disclosure of material facts - Property for sale - Property for lease Suggested review of procedure - when and why?

Conflicts of interest /beneficial interest when selling a property

Conflict of interest

Beneficial interest Suggested -review of procedure - when and why? Referral of a service provider and retaining a benefit when selling a property. Suggested review of procedure - when and why? Property advertised sale price guide recommendations and documentation requirements Suggested review of procedure - when and why?

Question 14 Communication with clients/customers, needs to be clear, documented, stored and easy to retrieve. This will assist the clients/customers to understand the complex issues when dealing in real estate / property transactions. Discuss what you think best ethical practice is for ensuring - a)information is clearly communicated on consumer protection issues such as sales and property management agency agreements or new tenancies including provision of required information (for example, the CBS Information Brochure) b)complaints process - outline a general complaint handling process Question 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: i.The best method of communication for your selected three (3) scenarios - it may be email, verbal, face to face, letter, telephone call, SMS message or a combination. (in some scenarios this may be obvious). ii.How will you manage each of your selected three (3) scenarios? 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. You discuss this with your landlord, who is happy with the tenant, and 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 for the first time 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 will all parties (the vendor and other buyers)?

Scenario c. A prospective purchaser has approached you to negotiate the price of a property. Money is tight for the buyer who is suggesting a further reduction of $2000 because the cubby house is not included in the sale. The vendor is prepared to negotiate. 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 the agent has received a better offer from another purchaser (a second buyer) after spending money on building and pest inspections. This is one unhappy and upset buyer and he wants some answers now! (Only an offer form has been submitted by the second buyer.) What will you say? If you do not have the relevant experience how would you handle this? Scenario e. A tenant emails their property manager reporting that the 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 and what information from the Residential Tenancies Act 1995 will you provide the landlord to ensure they understand their obligations and the tenant's rights? 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 manager is available right now.

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