Professional Documents
Culture Documents
Table of Contents
Question 1........................................................................................................................................3
Question 3........................................................................................................................................3
Question 8........................................................................................................................................3
Question 9........................................................................................................................................4
Question 10......................................................................................................................................4
Question 12......................................................................................................................................4
Question 13......................................................................................................................................5
Question 14......................................................................................................................................5
Question 15......................................................................................................................................5
Question 19......................................................................................................................................6
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Question 1
● The agent should not disclose information regarding the client unless it is being
● The agent should not put their interest at first due to which conflict of interest may take
place.
● The agent is also not allowed to make false and misleading claims on behalf of the
Question 3
The three types of ownership that can be applied to a real estate agency are as follows:
● Sole ownership: In this kind of ownership an individual is only involved in the purchase
● Tenancy: In this kind of ownership, two more individuals can share the ownership of a
respective property.
● Joint tenants
Question 8
Whenever an agent tries to retrieve information from a particular person, the “Privacy
Act of 1988” comes into play. The agent assures the respective person that their information will
be well protected and due to the presence of a privacy policy within their organization. However,
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the “Privacy Act of 1988” states that, the agents of the private sector organizations such as the
real estate industry possess the right to collect information regarding persons. The Act allows the
agent to secure their personal information, as it may prove useful for the prospective
Question 9
The “Agents Act 2005” allows the respective agents present within the real estate
Question 10
A. The agent is allowed to hold monies on behalf of the client. However this includes a little of
the money which is permitted by the client until he or she gains confidence in the agent.
B. Before the agent disburses the money the client is supposed to show the receipt which the
agent has given to the client during payment. It is considered as a record of transaction, which is
Question 12
The “Rules of Conduct” has been inserted in the “Property and stock agents Act of
2002”. This has raised the level of professionalism within the real estate industry. Under this act,
the payment of rental income is being paid by the agent to the property owner at the end of each
month. Apart from this, any gifts and benefits provided by the agent’s employer are strictly
prohibited within the real estate industry as it can cause a conflict of interest. The act also allows
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the agent to set up a different trust account for rental and sales money. This is the Rule of
Conduct can be found in schedules 1-3 and 6 of the real estate regulations.
Question 13
In this case, a “breach of contract” takes place when a party belonging to the contract
decides to break the conditions of the agreement. However, according to the laws within the real
estate industry, a breach of contract takes place when one party to the contract fails to fulfil the
Question 14
A. A conflict of interest takes place when the personal and professionalism interests of the agent
are both present during the execution of his or her duties. The conflict of interest also takes
place. The professional interest and personal interest tends to be different with that of the clients.
B. The “Estate Agents Regulations 2008” prohibits the estate agents to act in their best interest
when they are dealing with their respective clients. It is considered as unlawful and improper
Question 15
At first, the agent should be certified under the “Agent Act 2005”. The agent is
responsible for providing the respective customer options regarding his or her finance. In this,
the agent can also refer the customer to a service provider such as mortgage broker from which
the agent is certainly to get a commission from the broker. First hands out a list of mortgage
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brokers to the buyer. After making the recommendation, the real estate is able to provide the
buyer with a broker, solve the financial problems and provide the client with options regarding
the purchase of property. The agent must initiate this process after the buyer has chosen the
property. However when the agent fails to execute his or her responsibilities at the stipulated
Question 19
Whenever the agent decides to pass on information to the bury the agent is obligated to maintain
some rules and regulations within the real estate industry. The rules may include prohibitions
making false and misleading claims to the buyer. The agent is also not allowed to dummy bid