Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

you have recently joined the team as the newest salesperson at Waterford Real Estate Ltd, working under the leadership of John Canon. Johnruns regular training

you have recently joined the team as the newest salesperson at Waterford Real Estate Ltd, working under the leadership of John Canon. Johnruns regular training sessions for the sales team and asks for your assistance in preparing some case study material. He's written a series of scenarios, taken from real-life situations, and asks help you to answer to be handed out at the end of the training.For each scenario, John asks u to answer each of the following

:a)What, if anything, has been done wrong by thesalesperson?

b)What legislation (if any) has been breached? (Identify the section and subsection as required). If appropriate, how could a customer claim a remedy? Note, more than one Act may apply in some situations.

c)Has the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code) been breached? If so, state the rule(s) thatapply.

d)What organisations would deal with such an issue, andwhy?

1: Annoyed customers and clients

1.Barbara Bullock phones the office and says, 'We drove from the other side of town to see the property at 17 Sentinel Drive because it was advertised as five double bedrooms, and we've got a large family. But when we got there, it was more like three double bedrooms, one single bedroom, and another room that I could only describe as a small study. We are very disappointed and annoyed that we wasted ourtime.'

2.Steve Smith comes to the office and complains, 'When we listed our home we gave the salesperson a copy of the registered valuation we'd had done about a year ago. He said that because we had that, he didn't need to do appraisal. That seemed strange -is itacceptable?'

3.When preparing an offer for Mr and Mrs Kongoola, recent immigrants with limited English skills who are purchasing their first New Zealand business, the salesperson failed to explain the meanings of 'plus GST', or 'unconditional'. The offer was accepted by the client, and the customers will now have to pay $112,500 more than they had expected topay.

4.Bevan Hall phones and says, 'Our neighbour, John, has recently put his lifestyle block on the market. It's a good property, but there's a massive power pylon in the front paddock. Imagine our surprise when we saw the first ad in the newspaper. It showed the house and paddock, but there was no sign of the pylon. Can a salesperson really delete something like that from a photo?'

5.A salesperson is listing the home of the Harkness family, which is held in trust.The signatories are Mr and Mrs Harkness and their solicitor, Jack Dawson. Mrs Harkness asks whether she and her husband can sign the agency agreement, rather than bothering the solicitor, 'because he's very expensive'. The salesperson agrees that there's no need to involve the solicitor until there's a sale and purchase agreement to be signed. He also fails to give them the New Zealand Residential Property Agency Agreement Approved Guide or advise them to seek legal advice before signing the agencyagreement.

6.Maria Tang calls and says, 'When we bought our first investmentproperty3 weeks ago, the salesperson assured us that it would rent for at least $480 per week, and that we'd probably get $520 without any difficulty. We relied on that information when working out our budget. But we've since found out that this isn't a popular area for rentals, and our property manager is struggling to find us a tenant who'll pay more than $440 per week.

'7.A salesperson is showing a 5-hectare lifestyle property to James.When pointing out the boundaries, the salesperson refers to a large, flat paddock on the eastern side as being included in the property. James comments that that paddock is exactly what he wants to develop an equestrian facility, including a dressage arena. In fact, that paddock belongs to the next-door neighbour. The size of the paddock is approximately half ahectare

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contract Law Text Cases And Materials

Authors: Ewan McKendrick

10th Edition

0192856545, 978-0192856548

More Books

Students also viewed these Law questions

Question

Should any enrichment always be considered unjust? Discuss.

Answered: 1 week ago