23135 version 1 Page 1 of 4 Demonstrate knowledge of the law of contract and the law of agency Purpose This unit standard is for people preparing for entry into the real estate industry as salespersons. People credited with this unit standard are able to: explain the law of contract as it governs real estate sales contracts; explain the provisions of the law of agency; and determine appropriate signatories for given contracts. Su bfield Domain Status Real Estate Real Estate Practice and Law Registered Status date 18 December 2006 Date version published 'l8 December 2006 Planned review date 31 December 201 1 Entry information Replacement information Accreditation Standard setting body (SSB) Open. This unit standard, unit standard 23136, and unit standard 23141 replaced unit standard 4654 and unit standard 4665. Evaluation of documentation and visit by NZQA and industry. REINZ Industry Training Organisation Ltd Accreditation and Moderation Action Plan (AMAP) reference 0070 This AMAP can be accessed at Special notes 1 The REINZ lndustry Training Organisation Ltd will provide Assessment Guidelines to assist accredited providers to interpret performance criteria. lndustry Best Practice Guidelines are contained in Assessment Guidelines and in Codes of Practice. Applications for Assessment Guidelines should be addressed to: The REINZ lndustry Training Organisation Ltd, PO Box 5663, Auckland. @ New Zealand Qualifications Authority 2008
23135 version 1 Page 2 of 4 2 Legislation Civil Union Act 2004 ss3-4; Consumer Guarantees Act 1993 ss2, 28, 29, 32, 33, 35, 36, 41, 43, 45; Contracts (Privity) Act 1982 s4; Contracts Enforcement Act 1956 s2; Contractual Mistakes Act 1977 s6; Fair Trading Act 1986 ss2, 9-11, 13, 14; Human Rights Act 1993 ss2, 21, 44, 53, 54; Joint Family Homes Act 1964 ss2, 5-7, 9-10; Overseas lnvestment Act 2005 ss10-12, 23; Overseas lnvestment Regulations 2005 regs 5, 12, 37; Privacy Act 1993 ss2, 6; Property (Relationships) Act 1976 ss2-2e, 8-9A; Real Estate Agents Act 1976 ss2, 16, 62-64; Residential Tenancies Act 1986 ss2, 23-32; Trustee Act 1956 ss2, 13A-13Q, 14-16, 31-32; and Unit Titles Act 1972 SS~-4, 6, 15, 16. 3 RElNZ Code of Ethics, REIN2 Rules of Practice, and RElNZ Codes of Practice including - Property Managers Code of Practice, Tender Code of Practice and Auction Code of Practice, are available at. For assessment against this unit standard, candidates will have access to the full RElNZ Rules, which are available to members of REINZ. 4 Definitions RElNZ stands for Real Estate Institute of New Zealand Inc. The Agreement for Sale and Purchase of Real Estate form is the RElNZ and Auckland District Law Society (ADLS) approved form. Common Law is also known as case law - jljdgements made by courts, rather than laws written by parliament. 5 Common Law judgements relating to the duties of an 'agent' may be applicable to this unit standard. 6 Assessment This unit standard will be assessed against on the basis of evidence of demonstrated performance in the workplace or in simulated work situations designed to draw upon similar performance to that required in the workplace. Elements and performance criteria Element 9 Explain the law of contract as it governs real estate sales contracts. Performance criteria 1.I The elements of legally binding contracts for the sale and purchase of land and businesses are explained in terms of contract law. 1.2 Rules of acceptance are explained in terms of contract law. 1.3 The nature and effect of misrepresentation, mistakes, undue influence, and duress in contracts are explained in terms of contract law. 1.4 Discharge of contracts by performance, agreement, frustration, and breach is explained in terms of contract law. O New Zealand Qualifications Authority 2008
231 35 version 1 Page 3 of 4 Explain the provisions of the law of agency. Performance criteria 2. 1 The relationship between principal and agent, and how the relationship may be created is explained in terms of the law of agency. express appointment of an agency, implied, estoppel, subsequent ratification. 2.2 The duties and responsibilities of principals and agents are explained in terms of the law. statutory, contractual, fiduciary. 2.3 The duty of care that agents owe to participants in real estate transactions is explained in terms of agency law, tortuous relationships, legislation, and industry requirements. 2.4 The nature of contracts of agency is explained as set down in law. 2.5 The meanings of the terms 'sole/exclusive agency' and 'general agency', and conditions relating to these types of agencies are explained in accordance with industry requirements. includes but not limited to - master agency. 2.6 Compliance and non-compliance of agency establishment is determined and supported by reference to RElNZ Rules and Real Estate Agents Act 1976. Real Estate Agents Act 1976 s62, RElNZ Rules Rule 14.2; Introduction, instrumentality, and effective cause. Determine appropriate signatories for given contracts. given contracts include - listing forms, Agreement for Sale and Purchase of Real Estate forms, tenancy agreements. PerFormance criteria 3. 1 Signatories are determined relevant to the individual contract. by reference to Property (Relationships) Act 1976, Joint Family Homes Act 1964, Civil Union Act 2004, and Trustee Act 1956. GI New Zealand Qualifications Authority 2008
23135 version 1 Page 4 of 4 Please note Providers must be accredited by the Qualifications Authority, or an inter-institutional body with delegated authority for quality assurance, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment. Industry Training Organisations must be accredited by the Qualifications Authority before they can register credits from assessment against unit standards. Accredited providers and Industry Training Organisations assessing against unit standards must engage with the moderation system that applies to those standards. Accreditation requirements and an outline of the moderation system that applies to this standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The AMAP also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements. Comments on this unit standard Please contact the REINZ Industry Training Organisation Ltd Isouthwick@reinz.co.nz if you wish to suggest changes to the content of this unit standard. O New Zealand Qualifications Authority 2008
23136 version 1 Page 1 of 4 Demonstrate knowledge of misleading and deceiving conduct and misrepresentation Level 4 Credits 4 Purpose This unit standard is for people preparing for entry into the real estate industry as salespersons. People credited with this unit standard are able to: explain the legal concept and the implications of misrepresentation in terms of real estate practice; explain the implications of the Fair Trading Act 1986 and Health and Safety in Employment Act 1992 as applied to real estate contracts, salespeople, and real estate agents in terms of unfair practices; and explain the legal provisions of the Contractual Remedies Act 1979 as applied to real estate practice. Su bfield Domain Status Real Estate Real Estate Practice and Law Registered Status date 18 December 2006 Date version published 18 December 2006 Planned review date 31 December 201 1 Entry information Replacement information Accreditation Standard setting body (SSB) Open. This unit standard, unit standard 23135, and unit standard 23141 replaced unit standard 4654 and unit standard 4665. Evaluation of documentation and visit by NZQA and industry. RElNZ Industry Training Organisation Ltd Accreditation and Moderation Action Plan (AMAP) reference 0070 This AMAP can be accessed at @ New Zealand Qualifications Authority 2008
23136 version 1 Page 2 of 4 Special notes 1 The REINZ lndustry Training Organisation Ltd will provide Assessment Guidelines to assist accredited providers to interpret performance criteria. lndustry Best Practice Guidelines are contained in Assessment Guidelines and in Codes of Practice. Applications for Assessment Guidelines should be addressed to: The REINZ Industry Training Organisation Ltd, PO Box 5663, Auckland. 2 Legislation Consumer Guarantees Act 1993 ss2, 28, 29, 32, 33, 35, 36, 41, 43, 45; Contracts (Privity) Act 1982 s4; Contractual Mistakes Act 1977 s6; Contractual Remedies Act 1979 ss4-11; Fair Trading Act 1986 ss2, 9-1 1, 13, 14; Health and Safety in Employment Act 1992; Human Rights Act 1993 ss2, 21, 44, 53, 54; Overseas lnvestment Act 2005 ss10-12, 23; Overseas Investment Regulations 2005 regs 5, 12, 37; Privacy Act 1993 ss2, 6; Real Estate Agents Act 1976 ss2, 16, 62-64; Residential Tenancies Act 1986 ss2, 23-32; and Unit Titles Act 1972 ss2-4, 6, 15, 16. 3 Definition REIN2 stands for Real Estate Institute of New Zealand Inc. Common Law is also known as case law -judgements made by courts, rather than laws written by parliament. 4 Common Law judgements relating to the duties of an 'agent' may be applicable to this unit standard. 5 Assessment This unit standard will be assessed against on the basis of evidence of demonstrated performance in the workplace or in simulated work situations designed to draw upon similar performance to that required in the workplace. Elements and performance criteria Explain the legal concept and the implications of misrepresentation in terms of real estate practice. Performance criteria 1 Misrepresentation is explained in terms of the Fair Trading Act 1986. 1.2 Misleading and deceiving is explained in terms of the Fair Trading Act 1986. 1.3 Penalties for breaches of the Fair Trading Act 1986 are explained as applied to false or misleading representation. O New Zealand Qualifications Authority 2008
23136 version 1 Page 3 of 4 Element 2 Explain the implications of the Fair Trading Act 1986 and Health and Safety in Employment Act 1992 as applied to real estate contracts, salespeople, and real estate agents in terms of unfair practices. Per%ormance criteria 2.1 The main provisions of the Fair Trading Act 1986 are explained as they relate to real estate practice. including but not limited to - unfair practices, provision of information, penalties, compliance requirements, section 14 Fair Trading Act 1986; real estate practice includes - property management, sale of businesses, rural or residential property, commercial or industrial property. 2.2 Implications of false or misleading representations or deceptive conduct in advice or information offered to vendors and purchasers are explained in terms of the Fair Trading Act 1986. 2.3 Implications of false or misleading representations in real estate advertisements relating to land, property, or businesses are explained in terms of the Fair Trading Act 1986. 2-4 Risks and implications for the salesperson under the Health and Safety in Employment Act 1 992 are explained. *.. open homes, showing of any property to purchasers. Element 3 Explain the legal provisions of the Contractual Remedies Act 1979 as applied to real estate practice. Performance criteria 3.1 Implications of false or misleading representations in advice, advertisements, or information offered to real estate vendors and purchasers is explained in terms of the Contractual Remedies Act 1979. includes implications for real estate and businesses sales (all sectors), letting and leasing, property management. 3.2 Remedies available under the Contractural Remedies Act 1979 for false or misleading representations in advice, advertisements, or information offered is explained in accordance with the legislative requirements. @ New Zeatand Qualifications Authority 2008
231 36 version "1 Page 4 of 4 Please note Providers must be accredited by the Qualifications Authority, or an inter-institutional body with delegated authority for quality assurance, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment. lndustry Training Organisations must be accredited by the Qualifications Authority before they can register credits from assessment against unit standards. Accredited providers and Industry Training Organisations assessing against unit standards must engage with the moderation system that applies to those standards. Accreditation requirements and an outline of the moderation system that applies to this standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The AMAP also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements. Comments on this unit standard Please contact the RElNZ Industry Training Organisation Ltd Isouthwick@reinz.co.nz if you wish to suggest changes to the content of this unit standard. O New Zealand Qualifications Authority 2008
4700 version 5 Page 1 of 4 Manage trust accounts in real estate firms Level 5 Credits 4 Purpose This unit standard is for people who intend to operate as branch managers or licensees in the real estate industry. People credited with this unit standard are able to: receive money in the capacity of a real estate agent, issue receipts for money, deposit money in trust accounts, and hold money in trust accounts for prescribed periods; make payments from trust accounts to entitled and authorised persons; maintain records and transactions, and account for transactions to entitled persons; and explain appointment and notification requirements for auditors. Subfield Domain Status Real Estate Real Estate Management Registered Status date 18 December 2006 Date version published 18 December 2006 Planned review date 31 December 201 1 Entry information Accreditation Standard setting body (SSB) Open. Evaluation of documentation and visit by NZQA and industry. RElNZ Industry Training Organisation Ltd Accreditation and Moderation Action Plan (AMAP) reference 0070 This AMAP can be accessed at Special notes 1 The RElNZ Industry Training Organisation Ltd will provide Assessment Guidelines to assist accredited providers to interpret performance criteria. Industry Best Practice Guidelines are contained in Assessment Guidelines and in Codes of Practice. Applications for Assessment Guidelines should be addressed to: The RElNZ Industry Training Organisation Ltd, PO Box 5663, Auckland. @ New Zealand Qualifications Authority 2008
4700 version 5 Page 2 of 4 2 Legislation Consumer Guarantees Act 1993 ss2, 28, 29, 32, 33,35, 36, 41,43,45; Fair Trading Act 1986 ss2, 9-1 1, 13, 14; Human Rights Act 1993 ss2, 21,44, 53, 54; Overseas lnvestment Act 2005 ss10-12, 23; Overseas Investment Regulations 2005 regs 5, 12, 37; Privacy Act 1993 ss2, 6; Real Estate Agents Act 1976 ss2, 16, 56-58, 60, 62-64; Real Estate Audit Regulations 1977 regs 1-1 3; Residential Tenancies Act 1986 ss2, 23-32; and Unit Titles Act 1972 ss2-4, 6, 15, 16. 3 Definitions REINZ stands for Real Estate Institute of New Zealand Inc. Company procedures are the specific procedures used in real estate companies and vary from company to company, all must comply with the Real Estate Agents Act 1976 and Real Estate Agents Audit Regulations 1977. 4 Assessment This unit standard will be assessed against on the basis of evidence of demonstrated performance in the workplace or in simulated work situations designed to draw upon similar performance to that required in the workplace. Elements and performance criteria Element? Receive money in the capacity of a real estate agent, issue receipts for money, deposit money in trust accounts, and hold money in trust accounts for prescribed periods. PerFormance criteria 1.I Money is received and receipts are issued in accordance with Regulations 7 and 8 of the Real Estate Agents Audit Regulations 1977. I.2 Money received is recorded in cash books, journals, ledgers, or computer records, in accordance with company procedures and bank requirements. 1.3 Money received is paid into trust accounts in accordance with section 56 of the Real Estate Agents Act 1976. 1.4 Money received is held for prescribed periods in accordance with section 57 of the Real Estate Agents Act 1976. 1.5 Company records and bank records are reconciled monthly in accordance with company procedures. for assessment evidence of two monthly reconciliations must be carried out. O New Zealand Qualifications Authority 2008
4700 version 5 Page 3 of 4 Element 2 Make payments from trust accounts to entitled and authorised persons. PerFormance criteria 2.1 Payments are made within prescribed periods to entitled and authorised persons in accordance with Regulation 7 of the Real Estate Agents Audit Regulations 1977. 2.2 Payments made are recorded in cash books, journals, and ledgers, or computer records, in accordance with company procedures. Maintain records and transactions, and account for transactions to entitled persons. Performance criteria 3.1 Trust account transactions are recorded in accordance with Regulation 7 of the Real Estate Agents Audit Regulations 1977 and company procedures. 3.2 Written accounts of transactions are given to entitled persons within prescribed periods in accordance with section 58 of the Real Estate Agents Act 1976. 3.3 Statements of account for trust accounts are prepared and presented to entitled persons in accordance with company procedures. 3.4 Monthly trust reconciliations are made available to auditors and the Secretary of the Real Estate Institute on demand in accordance with Regulation 7 of the Real Estate Agents Audit Regulations 1977. Element 4 Explain appointment and notification requirements for auditors. PerFormance criteria 4. I Explanation includes procedures and notifications requirements to appoint auditors in accordance with section 60 of the Real Estate Agents Act 1976, and Regulations 4, 5, and 6 of the Real Estate Agents Audit Regulations 1977. 4.2 Explanation includes a licensee's audit obligations and duties in accordance with Regulations 6 and 7 of the Real Estate Agents Audit Regulations 1977. Please note Providers must be accredited by the Qualifications Authority, or an inter-institutional body with delegated authority for quality assurance, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment. @ New Zealand Qualifications Authority 2008
4700 version 5 Page 4 of 4 b Industry Training Organisations must be accredited by the Qualifications Authority before they can register credits from assessment against unit standards. Accredited providers and lndustry Training Organisations assessing against unit standards must engage with the moderation system that applies to those standards. Accreditation requirements and an outline of the moderation system that applies to this standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The AMAP also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements. Comments on this unit standard Please contact the RElNZ Industry Training Organisation Ltd Isouthwick@reinz.co.nz if you wish to suggest changes to the content of this unit standard. O New Zealand Qualifications Authority 2008