Real Estate Report

Prepared By: Kieran

1. Agency Functions:

Real Estate agencies offer various services, including buying and selling land,
residential and commercial properties, buying and selling a business, stock, and
machinery, whether by intervention or auction.
Real Estate agencies also provide leasing of properties for owners, residential or
commercial, and facilitate the essential requirements in terms of payments, repairs,
inspections, and dealing with all matters concerning the property.
Real Estate agencies are contracted to work on behalf of their client.
Ownership of a real estate business can be:
- Sole Trader: qualified and licensed real estate individual owning a real estate firm.
They can employ other personnel, but they are in control of all the profits and debt.
- Partnership: This is an agreement between two or more people distributing profits and
losses within the business.
- Company: A company is a separate legal entity from its owners. Any profit or loss
belongs to the business but not the employees. Owners of the company and directors
are liable for the loss.

- Cooperative: A cooperative is a business owned by several individuals with at least

five members. They are governed by different laws and regulations that the Fair
Trading NSW regulates.

Roles within the real estate agency:

Real Estate Agents: They are brokers involved with business transactions such as real
property or businesses. Including houses, home units, townhouses, and vacant lands.
However, some firms also specialize in types of real estate, which are used to generate
income for investors. These include shopping centers, hotels, motels, industrial
complexes, home unit or townhouse developments, and office blocks. They also act as
salespersons and also property managers.
Property Managers: they market properties for lease and arrange for potential clients
to see the properties, including commercial, industrial and retail property, on behalf of
property owners. The property managers collect rent, arrange repairs, market the

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property, negotiate leases and review rent, advise on market rents, and represent the
property owner at tribunal hearings.
Sales Persons: They make up a large sector of the real estate profession and work on
behalf of property vendors (sellers). Their duties include Appraising properties,
obtaining listings of properties for sale, marketing the property, seeking out and
introducing buyers, offering advice on current market conditions, arranging and
overseeing inspections and negotiating, overseeing inspections, negotiating the sale,
and liaising with legal requirements.
Auctioneers: Auctioneers conduct public sales through competition, usually on the
site of the property. An auctioneer must be a licensed real estate agent and have
completed specific units in their qualification.
Body Corporate Managers: The role of the Body Corporate Manager is similar to that
of a property manager; they are in control of the common property, which is usually a
subdivided property that is usually part of a block of units or flats.
Functions of a corporate body manager include: managing and attending meetings,
preparing and distributing minutes and correspondence, arranging repairs and general
property maintenance, collecting and managing funds, arranging insurance, and
advising of any changes to relevant legislation and regulations.
Business Brokers: are involved in selling a particular type of business, such as milk
bars, caravan parks, or hotels, which is a highly specialized area of real estate.
Buyer's Agent: an agent that represents the buyer during the buying process. The
buyer's agent works for the buyer.
Stock and Station agents: They usually operate in rural areas and often have a high
profile in rural communities. They sell, buy and exchange livestock, property, and
agricultural products on behalf of their clients.
Stock and station agents conduct auctions of property, livestock, and chattels such as
farm machinery.
Valuers: valuers are specially trained real estate agents who can determine the
property's value based upon market conditions at a given time. Valuations are used
for various purposes, including calculating land tax, municipal rates, and stamp duties
on property transfers and loans, insurance compensation, family law settlements,
assessing mortgages, assessing the value of assets, assessing rent for leases,
establishing the value of properties for sale.

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Receptionist and Administrative personnel: Are not under the same legislation as the
other roles in real estate. They do administrative duties, and they have some
specialized training in administration.

2. Regulatory Framework:
The real estate industry is regulated by legislation in the Property and Stock agents
Act 2002 (NSW) and its regulations. The Act regulates agents' conduct and
competence required to carry out the profession. The Act's regulatory framework
includes industry licensing, disciplinary procedures, and consumer protections.
https://legislation.nsw.gov.au/view/whole/html/inforce/current/act-2002-066 other
acts that influence the conduct of working in Real Estate is the Fair work Act 2009
https://www.legislation.gov.au/details/C2019C00270 Anti-Discrimination Act 1977
https://legislation.nsw.gov.au/view/html/inforce/current/act-1977-048

Regulation
The NSW Fair Trading is a government organization responsible for making sure that
Real Estates are working within the legislation. They give recommendations and
information to the industry regarding regulation and determine the eligibility for
licenses.

Industry Bodies
There are two national bodies for real estate professionals, they include:
Real Estate Institute of Australia (reia.asn.au). REIA is an organization that
provides research and well-informed advice to the Federal Government,
Opposition, and professional members of the real estate sector, media, and the
public on various issues affecting the property market.
National Real Estate Association (nrea.org.au) was formed to build the professional
standing of real estate professionals within the community and build educational
pathways for its members through 'work-based learning through professional practice.
The Union for Real Estate: (myapsa.com.au) The Australian Property Services
Association (APSA) is a registered trade union representing those who work in an
'operational capacity in the real estate industry.

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3. Licensing:
There are three categories of license and three levels of license within each category.
The categories divide licensing into three main areas of work in real estate: real estate,
stock and station, and strata management.
The three levels are assistance agent, agent class 2, and agent class 1.
Assistance agent: must study five units of the Certificate IV in Real Estate Practice.
(CPP41419) or seven units of the Certificate IV in Strata Community Management
(CPP40516). Once they have their license from Fair Trading, they can work and
complete the qualification, the license lasts four years, but they cannot enter into
contracts or agreements or authorize to withdraw funds from a trust account.
Real Estate Agent: Must have a class 2 license. They must have completed the
Certificate and also completed two years of work experience. They can complete all
real estate professional tasks except withdraw funds from a trust account.
Licensee in Charge: They must have a class 1 license and completed a Diploma of
Property (CPP51119) or property services (CPP50307) and hold a class 2 license for
at least two years.
They can manage trust accounts.
Auctioneer: Must have a class 1 or class 2 license and completed three units from the
Certificate IV in Real Estate Practice. If an auctioneer is licensed under the old
system before (2020), they have to complete the qualification appropriate to the full
license.

Licensees are required to obtain professional indemnity insurance.

Every Real Estate with a license is required to complete professional development.
Fair Trading sets PDS requirements. Assistant Agents must complete three units from
the relevant Certificate IV licensing qualification; Class 2 licenses are required to
complete 3 hours of compulsory CPD topics and 3 hours of elective CPD topics.
Class one agents must complete 9 hours of CPD topics: 3 hours compulsory topics,
three hours elective topics, and three hours of business skills topics.

4. Terms and Conditions of Employment:

The National Employment Standards and the Real Estate Industry Award 2020 is a
federal law that covers the requirements and obligations of employees.

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Employers have a certificate of registration from Fair Trading to employ someone in
real estate. An employment contract must be aligned with the NES and Real Estate
Industry Award 2020. Employees with or without a commission may be hired full-
time, part-time or casual. An employer can also hire contractors. The employer and
the employee must sign a contract that covers: pay rates, how often the employee is
paid, annual leave and other holiday, commission conditions, allowances, notice for
termination, and how the employer and employee will handle disputes.

Pay Rates Level 1 in 1st 12 months: $778.30 per

week
Level 1 after 12 months: $819.40 per
week
Level 2: $862.50 per
week
Level 3: $948.80 per
week
Level 4: $992.00 per
week
Casual leave loading: 25% of the
minimum hourly rate.
Employees under 19 get paid a
percentage of these rates and will
increase annually until 21.

Employees can work 38 hours total time and are entitled to 4 weeks annual leave.
Allowances are paid for the personal use of vehicles, mobile phones, uniforms, and
other expenses. Notice of termination of employment is between 1 to 4 weeks,
depending on the length of time the worker has been employed. Parties must try to
resolve disputes at the workplace through discussions or with senior levels of
management. If not resolved dispute may be referred to the Fair Work Commission.

5. Employment Opportunities:

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Property Manager: Market the property for rent, select tenants, collect rent, arrange
repairs, market the property, and represent the property owner in tribunal hearings.

Buyer’s Agent: A buyer's agent helps buyers understand the real estate market. This
type of real estate agent reaches out to pre-qualified buyer leads to determine their
needs, host open houses, present purchase offers, and sell homes.

Business Broker: An Agent who helps people buying and selling of businesses. The
primary significance of a business broker is to act as a cushion between the buyer
and the seller.

Auctioneer: An auctioneer sells properties on an open market to the highest bidder.

This happens in the business premises.

6. Communication Strategies:
1. The communication strategy with clients is to watch for clues about their preferred
learning style and incorporate the suitable communication approach that suits their
style.
2. It is understanding the different cultures and understanding their backgrounds.
Adopt appropriate behavior to develop good communication with the clients.
3. Asking for feedback during and at the end of working with a client shows that you
care about the client’s needs and the quality of service you offer them.
4. Reviewing communications if misinterpretation occurs helps avoid conflict and
enables negotiations to continue to reach a satisfactory outcome.
5. Speaking calmly and not yelling may help, as will being patient and taking time to
ensure the person has understood you and asking questions or engaging answers to
ensure that you have understood the person.

Complaint Handling Strategies:

1. A real estate agent must be sincere and interested in the client's concern and show
that he is more concerned with their issue than about being right. Being friendly
and keep all communication channels open to resolve the complaint.

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2. Suppose a customer comes up with a complaint. A real estate agent must be an
excellent listener to show that he hears what they are saying. Always rephrase
what they said and ask them what was understood is correct.
3. There may be a lack of tolerance towards other people's differences. If a client is
angry, real estate agents must not argue with them. Acknowledge their feelings
and listen attentively, which they may calm down.

Professional Pathways:
Professional Development Pathway 1:
Enroll in Certificate IV in Real Estate (Practice) CPP41419
Complete five core units and apply for an assistant real estate agent license.
Once the license is approved, apply for work as an assistant real estate agent.
Complete the qualification within four years of the start date.

Professional Development Pathway 2:

From class 2 agent to class 1 agent:
Enroll and complete a Diploma of Property
(CPP51119) Complete work experience (2 years as a
class 2 agent) Apply for class 1 agent license.