Real Estate Institute of Tasmania Assignment Cover Sheet

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1 Real Estate Institute of Tasmania Assignment Cover Sheet Unit (s) of competency CPPDSM4080A Work in the Real Estate Industry Name of candidate Attempt number Method of Delivery Attended class Date of Training: or Distance Learning Date commenced Distance Learning (Assignment will be returned if D/L commencement date isn t provided) DECLARATION: I certify the work in this assessment is my own and submitted in accordance to the REIT Assessment Guidelines (see over for details) Signed Date This section below is to be completed by the Assessor The participant demonstrated the required skills and knowledge to undertake the requirements for the elements and performance criteria and the critical aspects for assessment. Assignment grading: Competent Not Yet Competent Re-submit required: Yes No Comments: Assessor name Assessor signature Assessment date Return assessment to: REIT Training Department, PO Box 868, Hobart, TAS, 7001 REIT Ver 8 page 1 of 22

2 Assessment Guidelines Submission Submitted assignments should be attached to the assignment cover sheet, which includes a declaration which must be signed to attest to the originality of the work. No work will be assessed without the signed statutory declaration. Students must retain a copy of their assessments. Should an assessment be lost/misplaced prior to a result being recorded, the assessment will need to be resubmitted by the student. Resubmission If an assignment is deemed as not yet competent (nyc), it will be returned to the student with comments from the assessor notes on the assignment coversheet. You are required to resubmit the assignment complete with a resubmit cover page. The resubmission cover page will be sent to you with your non competent assignment. Send your completed assignment to the REIT Training Department, GPO Box 868 Hobart Tas 7001 or Please refer to the Student Handbook, Code of Practice and Privacy Policy for additional information. Plagiarism Plagiarism refers to the practice of presenting the words of another author (it may be a text writer or another student) as your own. This is not permitted. At times you will be asked to learn about and discuss the views or theories of others. This should be done with appropriate acknowledgement of source material. In general: (a) Always express your own ideas in your own words. When drawing from the work of other authors cite the source and show the quotation in inverted commas. (b) Do not incorporate the words used by text writers, your trainer or other students in your answer unless you attribute those words to their author. (c) Never hand in an assignment which is the same as, or closely similar to, another student's assignment. When two or more substantially similar assignments are received, the candidates concerned are likely to both be asked to resubmit (d) Do not provide, as evidence of your own competence, documentation or other work that has been completed by another person All cases plagiarism WILL be brought to the attention of the Training/Business Development Manager. Any Candidates involved will be asked to show cause as to why they should not be removed from the Training Course. Students will be; 1. Required at their own expense to have another assignment written by the trainer and re submit that assignment 2. If this is the second such incident, then the student may be removed from the training course at the discretion of the Training and Business Development Manager and Chief Executive Officer. REIT Training Department REIT Ver 8 page 2 of 22

3 Competence and assessment information To be assessed as competent participants must provide evidence of their knowledge and skills relative to this unit of competence. They must successfully complete a number of assessment activities to the standard and the performance benchmarks required for the qualification level. It is the responsibility of the trainer/ assessor to determine what and how much evidence is required to make an assessment judgement that complies with the rules of evidence and the principles of assessment. To be assessed as fully competent for this unit students need to be competent in their assignment, workplace assessment and have a completed third party testimonial. Resource implications for assessment include access to suitable simulated or real opportunities and resources to demonstrate competence assessment instruments that may include personal planner and assessment record book access to a registered provider of assessment services. REIT Ver 8 page 3 of 22

4 Activity 1 Q 1: In your own words, describe the fiduciary relationship an agent has with the client in a real estate transaction? Q 2: In your own words, describe the agency - vendor relationship. Q 3: What is a contract of agency? Q 4: List three practices that are mandatory for sound agency practice. Q 5: Explain what the consequences are if you do not meet your client s needs? REIT Ver 8 page 4 of 22

5 Q 6: Why is personal presentation and professional image important to your role in real estate? Activity 2 Q 1: What is the difference between a partnership and a company business structure? Q 2: What are the three forms in which a business may be owned and operated by a registered real estate agent? Q 3: In real estate, who is the person who is lawfully authorised to act on behalf of a vendor to perform certain specific activities which affects the vendor's rights and duties in relation to a third party? REIT Ver 8 page 5 of 22

6 Q 4: What are the key operations of a real estate agency? Q 5: Name the 3 ways that a Real Estate Agent can sell property. Activity 3 Q 1: Where is Common law derived from? Q 2: Name eight grounds, pursuant to The Anti-Discrimination Act 1998 (TAS), on which it is illegal to discriminate? Q 3: In Tasmania, which legislation regulates shop leases? REIT Ver 8 page 6 of 22

7 Q 4: Which body regulates the real estate industry in Tasmania? Q 5: What duties of agency employees require a licence? Activity 4 Q 1: What is meant by the term trust monies? Q 2: List two circumstances under the Property Agents and Land Transactions Act where an agent may withdraw money from the Trust Account. Q 3: What type of receipt must be used when collecting deposit money for a sale of land contract? Q 4: Name the two Acts that regulate all aspects of real estate in Tasmania. REIT Ver 8 page 7 of 22

8 Q 5: Where would you source a copy of the Property Agents & Land Transaction Act 2016? Q 6: Source the latest version of the Residential Tenancy Act 1997 from Tasmania s Law website- What is the current view date? Q 7: What are the agent s supervisory responsibilities towards employed property representatives working in sales and property management? Q 8: What is the difference between chattels and fixtures in a contract for sale of a resident home? Q9: Who is entitled to hold deposit monies and in what type of account? REIT Ver 8 page 8 of 22

9 Q 10: What are the procedures a real estate agent must follow when deposit money is received? Q 11: Explain the circumstance in which a deposit may be withdrawn by a real estate agent. Activity 5 Peter is a salesperson with Black Coast City Real Estate. Peter is contacted by interstate owners who need to sell their investment house. The owners advise Peter that they are anxious to sell, as they need the money for impending medical expenses. However, they have not visited the Black Coast for some time and have no idea of the values in this area. Unbeknown to the owners, Peter has a son who is looking for a house at the Coast. Peter knows that similar units in this area have sold for $275,000- $280,000. Peter inspects the house and calls the owners telling them it is worth around $250,000. The owners only paid $202,500 for the house 3 years ago and consider that the price is reasonable. They consequently list the unit for sale with Peter. He then sells it to his son. Answer the following questions 1 (a): If any, what offences has Peter committed? REIT Ver 8 page 9 of 22

10 1 (b): Can Peter charge a selling commission and why/why not? 1 (c): How can this scenario be avoided? Activity 6 Q 1: Discuss the previous case study and make appropriate recommendations to ensure the agent does not commit breaches of legislation and ethics. Q 2: To avoid the offences Peter committed in this Case Study, formulate a strategy to minimise the risk in your agency. REIT Ver 8 page 10 of 22

11 Activity 7 Q 1: In your own words identify aspects of the real estate industry that highlight the need for regulation. Q 2: What points should an agent consider when considering releasing personal information to a third party? Q 3: What is the correct response when someone asks you a question for which you do not have the appropriate answer? Explain the rationale of your answer. REIT Ver 8 page 11 of 22

12 Activity 8 Q 1: Explain the two categories of responsibility a managing agent has towards the employees. Q 2: List five responsibilities employees have to their employers. Q 3: How would you maintain your knowledge and skills in providing real estate services? REIT Ver 8 page 12 of 22

13 Activity 1: Part 2 Q 1: Please name and describe the legal duties that the agent and/or property representative has to their vendor. Q 2: Please name and describe the duty that the agent and/or property representative has to the purchaser. Q 3: What is the name of the State Government body which manages licensing of property agents in Tasmania? Q 4: Name the 4 licences that are issued by the above body. REIT Ver 8 page 13 of 22

14 Activity 2: Question 1: List the two key Acts of Parliament which governs the conduct of real estate activities in Tasmania. Question 2: List five other Acts of Parliament which have high relevance to work which real estate agencies, and their employees, undertake? Question 3: Billy Green is a licensed agent and works by himself selling real estate. He has a successful small business and runs all operations entirely by himself. What sort of business ownership does Billy have? What liability does Billy have if a client was to sue him? REIT Ver 8 page 14 of 22

15 Question 4: Each agency must have a Trust Account. Why is this? Question 6: Can you withdraw cash from a Trust Account? Explain your answer. Question 7: There are many areas of real estate in which you could specialise. If you are a practising property representative, working in sales and a consumer asks for an estimate of rent for the property you are selling, how should you answer them? Question 8: The Privacy Act 1988 is very specific about how people s private information and details should be stored by businesses. Outline why it is essential that all agencies have procedures relating to the storing of personal details. REIT Ver 8 page 15 of 22

16 Activity 3: Question 1: What is the importance of a Certificate of Title? Question 2: Give an example of a negative covenant. Question 3: Briefly describe what an encumbrance is. Question 4: Explain the term C.M.A. (Competitive Market Analysis) and detail when a Property Representative would use one. REIT Ver 8 page 16 of 22

17 Question 5: Explain the difference of joint tenancy and tenants in common. Question 6: What does agent s disclosure mean in reference to known facts or defects about a property? Question 7: Please name two circumstances where a purchaser s offer would not be presented. Question 8: Explain Section 49 of the Property Agents and Land Transactions Act 2016 (Conflict of Interest). REIT Ver 8 page 17 of 22

18 Question 9: What is the process that needs to be followed if the purchaser of a property is an employee or associate of the agent selling the land? Q10: List five effective communication strategies that you would use when endeavouring to develop rapport with a prospective vendor that is from a different cultural background from yourself. REIT Ver 8 page 18 of 22

19 Project 1: You are required to undertake the following project(s) as directed by the trainer/assessor. Research the Property Agents and Land Transactions Act 2016 and explain the requirements a person must follow to become a property representative and a real estate agent. Project 2: Recommended Scale of Fees and Commissions Prior to 2005, Tasmanian legislation featured a requirement of the REIT to publish a recommended scale of fees. When the Property Agents and Land Transactions Act (2005) commenced the scale of commissions was discontinued. However, the REIT as a service to members and consumers retains the scale of commission on the REIT website as a GUIDE ONLY. Effective 1st July 2014 (incl. GST) 1. Sale of Property Where the purchase price:- Does not exceed $10, % with a minimum of $ From $10,001 to $50,000 $1104 plus 6.02% of excess over $10, From $50,001 to $100,000 $3512 plus 4.22% of excess over $50, From $100,001 upwards $5622 plus 3.99% of excess over $100,000 You are given the task of calculating the professional fee payable by your client in a number of cases. All figures are GST inclusive. Calculate the commission payable in the following cases: 1. Sale Price $ 9, Sales Price $49, Sale Price $83, Sale Price $1,450,000 REIT Ver 8 page 19 of 22

20 Project 3: Imagine your work for a small real estate office. You have been selected by your manager to train and mentor a new staff member. You are required to provide the new staff member with a written report on what is relevant to working in the real estate industry and how to access knowledge of legal and ethical requirements of Property sales. You should cover: Summary of the real estate office s infrastructure and industry employment requirements (Personal presentation, continuing training, employee and employer rights) List four skills required for working in the real estate industry (e.g. negotiation, planning, organising etc.) Show examples of the 4 skills chosen. List six legal and ethical requirements of Property Sales An outline of the methods the new staff member will use to find information on legal and ethical requirements of Property Sales Knowledge on forms required and how the new staff member can access them. REIT Ver 8 page 20 of 22

21 REIT Ver 8 page 21 of 22

22 REIT Ver 8 page 22 of 22

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