Task 2: Questions for Staff Training Sessions

The branch Manager, Jane, has asked you to help her prepare some scenarios that she can use in her weekly meetings as on-going training for her sales team. She has recently overheard some interesting discussions in the office between the sales team and thinks it's time to upskill and remind everyone of their duties and obligations under the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code).

Jane has drafted the following scenarios based on complaints and positive feedback she has experienced during her career. She would like you to prepare the example answers so she can include them in the upcoming training sessions.

Read the following scenarios, then:

State the legislation that applies to the situation (name the section(s) of the Act and rules of the code that have been breached, or that have been complied with), and

Identify whether each issue is likely to reflect:

o misconduct, or

o unsatisfactory conduct, or

o no further action is required.

(if unsatisfactory or misconduct apply, also identify the section that relates)

iii. I recently listed my house for sale with a local agency. The salesperson told me that he could get at least $700,000 which sounded like a very good price, so I signed an agency agreement and put the house on the market. When my son saw my house for sale at $700,000, he said I was selling far too cheaply and asked to see a copy of the market appraisal. I hadn't been given one of those, or anything else for that matter. I don't even have a copy of the agency agreement I signed, or a copy of the approved guide. The salesperson did say he would get some paperwork to me at a later stage as he was in a hurry to get to his next appointment, but that was about a week ago. I have since found out from another agency that my property is worth at least $800,000 comparing it to other recent sales in my neighbourhood.

Task

Identify two sections from the Act and three rules from the Code that are relevant.

Justify whether misconduct or unsatisfactory conduct or no further action applies (if unsatisfactory or misconduct applies, also identify the section that relates).

iv. We recently made an offer to purchase our first home. My husband and I were very excited but very nervous that we would make a bad choice. The salesperson made us take our time with the viewing and suggested we had a second look. We loved it and wanted to make an offer straight away. He even gave us a little booklet to read about buying property and we had to sign to say we had received it. He pointed out some rotten boards in the deck and recommended that we got a building inspection and a LIM report. He also explained that the owners wanted us to know that the neighbours were going to build a treehouse by the back fence for their children and we would be able to see it from the BBQ area. After he went through the entire sale and purchase agreement, he then asked us to contact our lawyer before we signed it. What a mission! When our offer was accepted the salesperson then gave us a deposit slip with details so that we could pay our deposit into his agency's trust account. Super excited, we move in three weeks.

Task

Identify two sections and subsections from the Act and three rules from the Code that are relevant.

Justify whether misconduct or unsatisfactory conduct or no further action applies (if unsatisfactory or misconduct applies, also identify the section that relates).

v. We purchased our dream home recently and within a few days of moving in, the neighbours told us that a developer had purchased the adjacent land and was preparing to start a residential subdivision of 23 homes. He also had resource consent in place to remove the native bush from the back boundary. Not only are we going to be subject to a substantially long period of building works, dust and noise, but we are also going to lose the privacy which was the main reason we purchased this home. The neighbours also told us that the previous owners of the property were the salesperson's parents. The neighbours appeared very surprised when we told them we had no idea of this either, as they said everyone knew why they were selling, especially their son.

Task

Identify two sections from the Act and three rules from the Code that are relevant.

Justify whether misconduct or unsatisfactory conduct, or no further action applies (if unsatisfactory or misconduct applies, also identify the section that relates)