Reference no: EM131222520

PART A - Oral questioning and learning activities

Question 1: What is the minimum qualification under the Property Occupations Act (POA) for a salesperson and a property manager?

Question 2: If a salesperson wanted to perform the activity of selling or attempting to sell or offering for sale or resale any property by way of auction, what licence would they need to hold?

Question 3: Can a licensee sell, lend, hire out of transfer their licence to another person?

Question 4: If a principal licensee is away for more than 30 days who must they notify?

Question 5: What is the governing legislation for the real estate industry in Queensland?

Question 6: What is the purpose of the Privacy Act 1988?

Question 7: There are a number of regulatory (government) bodies that govern the operations of real estate agencies in each State. What is the purpose of the REIQ Standards of Business Practice?

PART B - Short answer section

You are required to complete the following questions based on the case study information supplied.

NOTE: The answer to these questions will become your underlying plan for the marketing strategy.  

Question 1: Client interaction is based on communication, both verbal and non-verbal. Communication fundamentals include many techniques that can be utilised to communicate effectively.

You have been asked to establish some communication techniques for the agency you work for, as a basis for your team's communication strategy.

What are 4 communication techniques you should consider?

Your response should include 2 key points of each communication technique.

Question 2: As part of the team communication strategy you are working on, it's been discussed that effective communication is a key component of any successful client-based business.

Provide 6 elements of what will be your rapport building process and explain how these elements will benefit the process.

Question 3: It is important that real estate professionals have an understanding of the various legal entities which can exist in any real estate transaction.

You have completed your studies with REIQ and are now in the process of establishing your own business.

There are 4 forms in which a business may be owned and operated by a licensed real estate agent.

What are these four (4) forms of business ownership? Provide a brief description of each form.

Question 4: You have signed an Appointment of agent with a client. This means there are now contractual duties in place between you and the client. Along with contractual duties there are also now fiduciary duties imposed on you as a real estate agent.

In your own words describe what is a 'fiduciary relationship'?

What is the agent required to do under their fiduciary relationship with the client?? List three 3 requirements

Question 5: As an employee of a real estate agency you have been asked by a potential seller to provide financial / investment advice to buyers about the potential growth in value of their property. Are you able to do this? Explain your answer including at least 2 topics an agent should pay particular attention to, before discussing with anyone.

Question 6: The agency you work for encourages each team member to continue their education and training. You have been asked to explain the benefits of this to a new team member.

Question 7: Section 30 of the Competition and Consumer Act (Australian Consumer Law) makes it an offence to make false and misleading representations about certain sales and property management transactions.

One of your colleague's asks you to review an advertisement they are putting together for some land they are selling. The land is listed at $590,000 but they want to advertise it as "priced from $560,000" as they believe this will attract more buyers.

What would you suggest to them about this marketing strategy, taking in to consideration Section 30 of the Competition and Consumer Act?

Question 8: You have been asked by a buyer to invest their deposit in to a special trust account. The terms of contract are only a 30 day settlement. Can you do this? Explain how you would respond to this request, including the legislation (and section of the legislation) that applies here.

Question 9: You are about to be employed by a real estate agent. They have emailed you a copy of your employment agreement. What would you expect to find in the employment agreement about your obligations as an employee to the business?

Detail 3 items you would expect to read about in the agreement and explain why.

PART C - Case Study Section

Please consider and complete the following task-

Darcy Heinrich is an agent employed Sandy Beach Real Estate. He recently listed 5 blocks of land adjacent to the beach and under his clients instructions stated in the advertisement 'your own walkway through the nature strip to the beach' in any of the marketing of the property.

The brochures were even more persuasive and claimed 'the land has access to its own sand dunes via a private walkway...' At the bottom of the marketing material there was a disclaimer in very small print stating that prospective buyers should check all details with the local authorities themselves.

The nature strip between the beach and the subject land was actually owned by the local council. The council saw the marketing and wrote to the principal licensee demanding they immediately withdraw the marketing and rectify information already passed on to any prospective buyer.

Discuss in your own words the provisions of section 30 of the Competition and Consumer Act (Australian Consumer Law) with respect to the wording of the marketing. Take into consideration what Darcy should have done prior to placing any of the advertising to avoid any possible breach of the Competition and Consumer Act (Australian Consumer Law).