BSRV4601

Set A ver. 2.0

ASSESSMENT

1 BSRV4601 Fundamentals of Real Estate

Assessment 1

Learning outcomes
1 Apply codes of conduct, rules, regulations, and legislation in the role of a real estate
licensee.

Instructions
Complete and submit your assessment according to the Open Polytechnic's
Assessments webpage. This includes information on academic integrity, word
guidelines and referencing.

• Include your name, student number and the assessment number.

• Number your pages.

Submission
• Submit your assessment in one file.
• Submit your work through your iQualify course.
• Emailed assessments will not be accepted.
• You will receive an automated notice following submission.

By submitting your assessment, you confirm that it is your own, original work.

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Assessment scenario
This assessment sees you working as the relieving Office Manager and Training Coordinator
at the Bilderberg Real Estate Agency. The agency has hired a number of new salespeople
who need to be trained in the fundamentals of real estate. The permanent Office Manager
is away on leave and has asked you to complete some tasks for her while you are covering.
These include:

• responding to real estate licence eligibility questions

• handling some complaints that have come through
• dealing with issues that have surfaced within the office.

Task 1: Eligibility
Message from the Office Manager: ‘We have had several enquiries regarding eligibility for a
career in the real estate industry. I was hoping to be able to respond to these enquiries
before I went on leave, however I ran out of time. Please draft responses to the following
enquiries.’
Each response must include and explain the relevant sections and subsections of the Real
Estate Agents Act 2008 that apply to the enquiry.
(Word count guideline: up to 70 words per response)

a. Enquiry 1: I noticed you are looking for new ‘licensed’ salespeople to join your
Agency. I don’t have a real estate licence yet, but I would like to become a
salesperson. What criteria are needed to be entitled to apply for a salesperson’s
licence?

b. Enquiry 2: I am considering my long-term career options in real estate. Once I have

obtained my salesperson’s licence, what experience and other criteria would I need
to meet before I could apply for a branch manager’s licence?

c. Enquiry 3: I am going to be studying for the next two years and won’t be needing my
salesperson’s licence. However, I don’t want to cancel my licence as I plan to come
back into the industry at a later stage. Is there an option to have my licence put on
hold?

d. Enquiry 4: I have been working for the past 16 months as a personal assistant for a
salesperson. They no longer want to work in the real estate industry. Is it possible to
have their licence transferred into my name?

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e. Enquiry 5: I am keen to pursue a career in real estate as a salesperson, but I am

worried that a previous conviction will prohibit me from getting licensed. I was
convicted of a dishonesty crime 15 years ago. Do you think I will meet the licensing
criteria? (Note that dishonesty crimes include theft, burglary, fraud and tax evasion).

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Task 2A: Complaints – Identifying Sections of the REA Act and Rules
of the Code
Message from the Office Manager: ‘Read the following complaints and state the specific
legislation that applies to each situation. This means you must name the section(s) of the
Real Estate Agents Act 2008 and the rules of the Professional Conduct and Client Care Rules
2012 ‘The Code’, that have been breached or complied with. (Note: Sections 72 and 73 are
not required for this task).’
(Word count guideline: up to 70 words per response)

Complaint 1
Consider the most relevant section and rules that apply to this scenario.
a. Identify one section from the Act.
b. Identify three rules from the Code that have been breached.
‘I was selling my property and agreed to pay $4,000 for advertising costs. The salesperson
said I needed to pay before my marketing campaign could start and gave me a bank account
number to make the payment. I paid straight away. A few days later, his office sent through
the invoice, which had a different bank account number on it. When I phoned the office, I
discovered I had paid my money into the salesperson’s personal bank account. I was very
concerned my money had been put at risk and I felt misled. The agency made a sincere
apology and said they would recover the funds from the salesperson.’

Complaint 2
Consider the most relevant section and rules that apply to this scenario.
a. Identify one section from the Act.
b. Identify three rules from the code that have been breached.
‘On Friday afternoon, I signed a sole agency agreement to list my property for sale. I told the
salesperson that I did not want any buyers to come and view my property until the following
Tuesday, as I had some personal matters to attend to. On two separate occasions over the
weekend the salesperson phoned me to request viewing times, insisting that his buyers
would only be available to view on the weekend. I declined both requests. The salesperson
phoned me again on Monday morning to say he would be at the property to show the sales
team through in approximately 30 minutes. When I declined and reminded him of my initial
instructions, he made the comment “Well do you want to sell or not”. I immediately
requested to cancel the sole agency agreement.’

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Complaint 3
Consider the most relevant section and rules that apply to this scenario.
a. Identify one section from the Act.
b. Identify three rules from the code that have been breached.
‘I was very keen to purchase 24 Baxter Street and asked the salesperson, Tim, to prepare an
offer. I told Tim I was a first home buyer and that I wasn’t sure of the process. Tim said not
to worry and that he would go through the process with me. After preparing the offer, Tim
asked me to sign it. I felt a little uneasy, as there were some things Tim hadn’t explained
very well, so I decided to have my lawyer check things over before I signed it. My lawyer was
concerned with the number of mistakes in the sale and purchase agreement and advised me
to speak with Tim’s branch manager. I found out that Tim had only been working as a
salesperson for two weeks and should have been supervised by his branch manager while
preparing the offer for me.’

Complaint 4
Consider the most relevant rules that apply to this scenario.
a. Identify two rules from the code that the salesperson has complied with.
‘We had invited a local salesperson, Suzy, over to list our home for sale. We told Suzy that
we were selling because our property had weathertightness issues and we could not afford
to do any of the remedial work ourselves. Suzy said she would need to disclose the
weathertightness issues to any potential customers. We did not want that information
disclosed and asked her not to tell anyone. Suzy said that she would not be able to list our
property for sale if she could not advise potential customers of the weathertightness issues
and declined to list our property with her agency.’

Complaint 5
Consider the most relevant section and rules that apply to this scenario.
a. Identify one section from the Act.
b. Identify three rules from the code that have been breached.
‘I recently listed my property for sale with one of your sales team, Jack Porter. He told me I
would receive a copy of the agency agreement within 48 hours of signing it. After several
phone calls and emails to Jack, we finally got a copy two weeks later. On reviewing the
agency agreement to check what the estimated commission would be, I also discovered the
agency agreement had no reference to the commission payable.’

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Task 2B: Standards of behaviour – Misconduct or Unsatisfactory

Conduct
Breaches of the Real Estate Agents Act 2008 and the Code can result in a licensee being
found guilty of unsatisfactory conduct or misconduct. Please review the five complaints
from Task 2A and answer the following questions.
a. Refer to the five complaints noted in Task 2A and assess the behaviour of the
salesperson. Identify if the salesperson’s behaviour in each case was unsatisfactory
conduct, misconduct or satisfactory conduct.

• Complaint (1) Choose one – Unsatisfactory conduct, misconduct or

satisfactory conduct.
• Complaint (2) Choose one – Unsatisfactory conduct, misconduct or
satisfactory conduct.
• Complaint (3) Choose one – Unsatisfactory conduct, misconduct or
satisfactory conduct
• Complaint (4) Choose one – Unsatisfactory conduct, misconduct or
satisfactory conduct
• Complaint (5) Choose one – Unsatisfactory conduct, misconduct or
satisfactory conduct

b. Complete the sentences below by filling in the blanks with the correct sections of the
REA Act and rules of the Code:
Section …………. of the REA Act describes unsatisfactory conduct.
Section …………. of the REA Act describes misconduct.
Rule ……...... of the Code states that a licensee who suspects another licensee to be
guilty of unsatisfactory conduct …………. report it to the Authority.
Rule ………… of the Code states that a licensee who suspects another licensee to be
guilty of misconduct ……………. report it to the Authority.

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Task 3: Complaints Process

It is important that all salespeople can clearly explain and guide a complainant through the
complaints process.
Summarise the complaints process, ensuring you explain it in your own words.
In your summary, refer to the Professional Conduct and Client Care Rules, ‘the Code’, to
specifically identify and explain the relevant rules that apply. Your summary should include,
but not be limited to, the following points.

• The options a complainant has for making their complaint.

• The advice you must provide to prospective clients and customers about the
complaints process, before they enter into any contractual agreements.
• The appropriate time to engage your Branch Manager/Agent in the process.
• Where clients or customers can find information regarding the complaints process.
• The Rule numbers from the Code that apply to complaints and support your
explanation.
Word count guideline: 200 words

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Task 4: Issues around the office

As the relieving Office Manager and Training Coordinator at Bilderberg Real Estate Agency,
you’ve been delegated some important tasks. The Office Manager has noticed several issues
around the office that need addressing but hasn’t had the time to handle them. She has
now asked for your assistance. Your task is to read the details of these issues and offer your
advice on how to resolve them, ensuring you reference the relevant sections of the Real
Estate Agents Act 2008.
Provide your detailed advice for each of the following scenarios.
(Word count guideline: 150 words for each answer)

Scenario 1
1. The branch manager is helping one of the new salespeople, Nick, prepare for an
appointment to present an offer to the clients at Batton Street. She reminds Nick
that he will need to take a copy of the correct guide to give to the client (seller). Nick
picks up a copy of the New Zealand Residential Property Agency Agreement Guide to
bring. Luckily, the manager notices he has picked up the wrong guide.

What advice should the manager give Nick about the two different guides? Your
explanation must include the following.

• The full name of the guide that Nick must give to his client when preparing
the offer and the relevant section of the Act that relates to this guide.
• The full name of the second guide, when it should be given and who it should
be given to, and the section from the Act that relates to this guide.
• A brief explanation of the main difference between the two guides.
Scenario 2
2. Mr. Hallowes has come to the office to meet with Aroha, one of the salespeople. He
is thinking about selling his property and Aroha is hopeful to secure his business.
During the meeting Mr. Hallowes asks Aroha if he can see a copy of her real estate
licence. ’Certainly, Mr. Hallowes, I have a copy right here’. ‘Thank you, Aroha. Oh, I
see it is about to expire in one week, will you still be able to continue as my
salesperson?’

• How should Aroha respond to Mr. Hallowes enquiry regarding her licence?
What does she need to do to ensure her licence doesn’t expire?
• Identify two sections from the Real Estate Agents Act 2008 that apply in this
scenario.

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Scenario 3
3. The office has received a complaint from some clients regarding one of the branch’s
salespeople.
‘We were selling our home on Main Street when our salesperson, Bob, presented us
with an offer. We weren’t very keen to accept the offer, as it seemed quite low
compared to the appraisal price Bob had originally supplied us with. We told Bob we
would like to take some time to consider our options, but he was very persistent that
we should seriously consider this offer as the buyer had another property she was
going to purchase if she didn’t get our one. We didn’t want to miss a sale, so we
agreed to sign the offer. The next week Bob returned with the buyer who had come
to complete her building inspection. I overheard them talking and realised the buyer
was Bob’s daughter! We believe this is a conflict of interest and that we should have
been advised of their relationship.’

• Explain the process Bob should have followed if he wanted to sell the
property to his daughter.
• Identify three sections from the Real Estate Agents Act 2008 that apply to
this scenario and name the prescribed form that must be used in this conflict-
of-interest process.

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Learning Outcome Tasks Judgement

Task 1: Eligibility
Learning outcome 1: We have had several enquiries regarding eligibility for a career in the The learner is required to correctly respond to all five queries. Each
real estate industry. I was hoping to be able to respond to these response should demonstrate a clear understanding of the real
Apply codes of conduct, rules, enquiries before I went on leave, however I ran out of time. Please estate licensing process and accurately apply the relevant sections
regulations, and legislation in the draft responses to the following enquiries. of the Real Estate Agents Act 2008. Specifically, for each query the
role of a real estate licensee. learner should address the following.
Each answer must include and explain the relevant sections and
subsections of the Real Estate Agents Act 2008 that apply to the a. Outlines the criteria needed to obtain a salesperson’s
enquiry. licence.

b. Discusses the experience and other criteria required to

apply for a branch manager’s licence after obtaining a
salesperson’s licence.

c. Explores the possibility of putting a salesperson’s licence

on hold during a period of inactivity.

d. Explains whether a licence can be transferred from one

person to another.

e. Evaluates the potential impact of a past conviction,

specifically a dishonesty crime, on the licensing process.

Task 2A: Complaints – Identifying sections of the REA Act and rules of the Code
Learning outcome 1: Read the five complaints and state the specific legislation that applies The learner is required to correctly respond to all five complaints
to each situation. This means you must name the section(s) of the Real and reference the specific section(s) of the Real Estate Agents Act
Apply codes of conduct, rules, Estate Agents Act 2008 and the rules of the Professional Conduct and 2008 and the rules of the Professional Conduct and Client Care
regulations, and legislation in the Client Care Rules 2012 ‘The Code’, that have been breached or Rules 2012 ‘The Code’, that have been breached or complied with.
role of a real estate licensee. complied with.
For complaints 1, 2, 3 and 5:
The learner should identify one breached section from the Real
Estate Agents Act 2008 and three breached rules from the Code.

For complaint 4:
The learner should identify two complied rules from the Code.

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Task 2B: Standards of Behaviour – Misconduct or Unsatisfactory Conduct

Learning outcome 1: Breaches of the Real Estate Agents Act 2008 and the Code can result in The learner is expected to assess the five complaints noted in
Apply codes of conduct, rules, a licensee being found guilty of unsatisfactory conduct or misconduct. Task 2A and accurately categorise the salesperson’s behaviour
regulations, and legislation in the Please review the complaints as noted above in Task 2A and answer in each case.
role of a real estate licensee. the following questions:
a. This categorisation should reflect whether the
a. Refer to the five complaints noted in Task 2A and assess the
salesperson’s behaviour was unsatisfactory conduct,
behaviour of the salesperson. Identify if the salesperson’s
behaviour in each case was unsatisfactory conduct, misconduct or satisfactory conduct.
misconduct or satisfactory conduct.
b. The learner should correctly identify the relevant
b. Complete the sentences by filling in the blanks with the sections of the REA Act and rules of the Code that
correct sections of the REA Act and rules of the Code. pertain to unsatisfactory conduct and misconduct
and the obligations of a licensee who suspects
another licensee of such conduct.
Task 3: Complaints process
Learning outcome 1: It is important that all salespeople can clearly explain and guide a The learner has successfully completed the task if they have
Apply codes of conduct, rules, complainant through the complaints process. provided a clear and concise summary of the complaints process,
regulations, and legislation in the explaining it in their own words and referencing the relevant rules
role of a real estate licensee. Summarise the complaints process, ensuring you explain it in your from the Professional Conduct and Client Care Rules, ‘the Code’.
own words.
The summary should include the following.
In your summary, refer to the Professional Conduct and Client Care
Rules, ‘the Code’, to specifically identify and explain the relevant • The options available to a complainant for making their
rules that apply. Your summary should include, but not be limited to, complaint.
the following points. • The necessary advice to be provided to prospective clients
and customers about the complaints process, prior to any
• The options a complainant has for making their complaint. contractual agreements.
• The advice you must provide to prospective clients and • The appropriate time to engage the Branch
customers about the complaints process before they enter Manager/Agent in the process.
into any contractual agreements. • Information on where clients or customers can find
• The appropriate time to engage your Branch additional details regarding the complaints process.
Manager/Agent in the process. • The rule numbers from the Code that apply to complaints
• Where clients or customers can find information regarding and support the learners’ explanation.
the complaints process.
• The Rule numbers from the Code that apply to complaints
and support your explanation

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Task 4: Issues around the office

Learning outcome 1: As the relieving Office Manager and Training Coordinator at Bilderberg The learner has successfully completed the task if they have
Apply codes of conduct, rules, Real Estate Agency, you’ve been delegated some important tasks. The provided detailed advice for each of the three scenarios presented,
regulations, and legislation in the Office Manager has noticed several issues around the office that need referencing the relevant sections of the Real Estate Agents Act
role of a real estate licensee. addressing but hasn’t had the time to handle them. She has now asked 2008.
for your assistance. Your task is to read the details of these issues and
offer your advice on how to resolve them, ensuring you reference the For each scenario, the learner should have addressed the
relevant sections of the Real Estate Agents Act 2008. following.

Provide your detailed advice for each of the following scenarios. • Scenario 1 - Explained the differences between the two
guides and identified which one Nick should present to
the client, referencing the full names of each guide and
the appropriate sections of the Act relating to each
guide.
• Scenario 2 - Advised how Aroha should respond to Mr.
Hallowes’ enquiry about her expiring license and
identified the relevant sections of the Act.
• Scenario 3 - Detailed the appropriate process Bob should
have followed given the conflict-of-interest situation with
his daughter, identified the relevant sections of the Act
and named the prescribed form for this process.

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