Assignment Task
Introduction
- This unit specifies the skills and knowledge required to work ethically in real estate.
- It includes expressing a thorough understanding of ethical standards in real estate.
- This unit supports real estate professionals in reducing financial and reputational risks, in meeting consumer protection standards, and in dealing responsibly with ethical breaches and challenges.
- This unit applies to people currently working in or seeking to work in real estate. State or territory licensing requirements may apply to this unit.
- This unit specifies the skills and knowledge required to work ethically in real estate.
- It includes expressing a thorough understanding of ethical standards in real estate.
- This unit supports real estate professionals in reducing financial and reputational risks, in meeting consumer protection standards, and in dealing responsibly with ethical breaches and challenges.
- This unit applies to people currently working in or seeking to work in real estate. State or territory licensing requirements may apply to this unit.
Question
To limit each of the below risks – explain, using one (1) example, why it is ethically important that the agent holds the appropriate real estate licence:
Scenario
Whilst you have been away on annual leave, the Principal of your agency has exchanged contracts to personally purchase one of your listings. You do not believe that your vendor is aware of the fact that it is your employer, as It has been purchased in a company name and there is no declaration on the file or on the copyof the contract in the file. The cooling off period will expire at 5pm today.
- Identify and explain the ethical issue in this scenario, quoting any relevant legislation:
- How would you approach this with your Agency Principal to express your concern? Ensure you detail at least 2 communication strategies you would use:
- What steps would you take to ensure this sale can proceed ethically, and how would you appropriately communicate this to the vendor?
- List two (2) penalties that could apply to the agency if you were to ignore what has happened and let the sale
proceed.
Scenario
Your vendors have instructed you to advertise their new building as ‘Apartments starting from $200,000’ but the lowest priced one is now sold. They instruct you not to change the signboard so as to attract more enquiries, even though the lowest priced apartment is now $280,000.
- Identify and explain the ethical issue in this scenario, quoting any relevant legislation:
A potential buyer has contacted you regarding the advertised apartment and has lodged a formal complaint to
your agency principal that you have misled them by advertising a lower price. - How do you record the complaint details?
- Describe how you would rectifly this complaint with the potential buyer. Refer to at least two (2) communication
strategies in your answer. - Review the below published prosecution and answer the below questions:
- Identify and explain the unethical real estate practice that has occured.
- Explain how the unethical practice relates to consumer protection requirements.
- Identify and explain three (3) real estate ethical standards or codes of conduct that are mentioned in this prosecution.
- List, if any, the core rules of conduct and sources of specialist advice that the Agent could have referred to, to help rectify the unethical practice.