Fundamentals of Real Estate Assignment Solved


Fundamentals of Real Estate


Task 1: Recruitment and FAQs…………………………………………………..3

Task 2: Questions for Staff Training Sessions………………………………….4

Task 3: What’s gone wrong?…………………………………………………………7

Task 4: Complaints Process……………………………………………………….8

Task 1: Recruitment and FAQs

  1. To become a real estate salesperson you need to complete a National / New Zealand Certificate in Real Estate (Salesperson) (Level 4). Then you will need to apply for a salesperson’s licence from the Real Estate Authority (REEA). To get licenced, you need to meet the criteria, such as: 
  • You should be 18 years of age or older.
  • You should be able to pass a criminal history check.
  • You should have a prescribed qualification.
  1. You will be ineligible to apply for a new licence within the preceding 5 years. Please check the date of the cancellation, and apply for your licence online using the REA’s Licensee Portal.
  1. Yes, A salesperson must, in carrying out any agency work, be properly supervised and managed by an agent or a branch manager (Section 50, Real Estate Agents Act, 2008). The supervisor will provide sufficient direction to ensure your work is performed competently and the work complies with the requirements of REA Act and the Code.
  1. To become a real estate branch manager you need to complete a National / New Zealand Certificate in Real Estate (Branch Manager) (Level 5) or schedule 3 university degree and ITO assessment. You will also need to complete 3 years real estate work experience. Then you will need to apply for a branch manager’s licence from the Real Estate Authority (REEA).
  1. No, you cannot. You must apply for your own licence to become a salesperson in real estate if you meet the criteria (you can refer to Section 36, 37 of Real Estate Agents Act 2008, or get more information form the REA website). If your wife is not doing real estate agency work, she can choose to voluntarily suspend her licence for up to 7 years, meanwhile, she will have to pay a suspension fee annually. She will also need to revive her licence form the Real Estate Authority (REEA) before she returns to work.

Task 2: Questions for Staff Training Sessions

  1. Rule 6.4: The salesperson misled the customers (purchasers) by allowing a website to list a starting price far below the client’s (vendor) expectation.

Rule 9.4: The indicating price ‘$750,000’ listed on the website might give customers an impression that it is consistent with the client’s price expectation which is not in fact.

Rule 10.4: There should be effective communication and understanding with clients around pricing. On one hand, the clients wanted “by negotiation” without a price being listed, on the other hand, the starting price ‘$750,000’ is without reaching an agreement with the client.

The issue is likely to reflect unsatisfactory conduct (section72, Real Estate Agents Act 2008). The salesperson knowingly allow the website listing a price which might mislead the purchasers to offer a price which is not the vendor would seriously consider accepting. This is not the standard of behaviour the client should expect, but is not serious enough to be misconduct.

  1. Section 126: The salesperson must not carry out any agency work before obtaining a signed agency agreement from the client. Furthermore, the agency will not be entitled to claim commission if they do not have an agency agreement.

Rule 9.6: The salesperson must not market the property or send the information of the property to the customers (potential buyers), before having a fully signed agency agreement from the client (the seller).

Rule 5.2: There is specific regulation in the REA Act and a rule in the Code that specifically states that a client must authorise for their property to be marketed through a signed agency agreement. The salesperson neglected these rules in this case.

Rule 6.1: The salesperson should act in good faith for the client, before getting permission and a written authorization from the client, the salesperson must not tell the information of the property to the customers or guide them to have a view of the property.

The issue is likely to reflect unsatisfactory conduct (section72, Real Estate Agents Act 2008). It was an inappropriate and invalid communication between the salesperson and the customers. Meanwhile, the client would not expect or accept that the salesperson disclosed the property information without authorization through an agency agreement. This is considered as incompetent or negligent but is not serious enough to be misconduct.

  1. Section 127: The salesperson must give a copy of the New Zealand Residential Property Agency Agreement Guide to the client before signing an agency agreement, meanwhile allow the client to have enough time to go through, and seek for advice from a legal specialist or other advisor if needed.
  2. .…………………………………………………………………
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