RES420/AS3
Ver: A2.1
RES420 Fundamentals of Real Estate
Learning Outcomes
This assignment assesses the following learning outcomes
• LO6: Identify relevant points of consumer protection law applicable to real estate practice.
Instructions
• Submit all your answers using the Task 1 Answer sheet. You can download this from the Assessment area.
• Create a header with your name, student number and assignment number, and number your pages
Assignment
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• You must make a reasonable attempt to complete your assignment before you submit.
Submission
• Submit your work through your iQualify course. Emailed assignments will not be accepted.
• You will receive an automated notice following submission.
• By submitting, you confirm that the work presented is your own original work.
Referencing and Plagiarism
Refer to Referencing and plagiarism for information on APA referencing and avoiding plagiarism
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Assignment scenario
For the purpose of this assessment, you and the team from Ferngully Realty Ltd are attending a workshop to complete your required Verifiable Continuing Education. The topic is addressing consumer protection law and there are seven case studies you will be reviewing as part of the workshop agenda.
For each scenario, you will be required to answer each of the following questions:
a. What, if anything, has been done wrong by the salesperson? (write one to two sentences for each scenario)
b. What legislation (if any) has been breached? (Identify the section as required). If appropriate, how could a customer claim a remedy? Note, more than one Act may apply in some situations.
c. Has the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code) been breached? If so, state the rule(s) that apply.
d. What organisations would deal with such an issue, and why?
Task 1: Consumer Protection Law – Case Studies for Review
1. Laura Scahill was excited to view a property in her sought-after neighbourhood but when she arrived at the viewing, the first thing she noticed was the driveway access to a large school adjacent to the property.
Considering there was no mention of the school in either the text or photos on the Agency’s website, Laura expressed her disappointment to the salesperson for wasting her time. After realising the photos had been photoshopped to remove the school signage and buildings, Laura followed up with a formal complaint.
2. Mrs Abernathy is an elderly customer purchasing an apartment in a unit title complex. She has limited savings and told the salesperson that she relies mostly on her retirement pension to support her living costs. During negotiations she was encouraged to increase her offer with the salesperson explaining that she would benefit from not having any on-going maintenance costs to attend to. She was not advised about the Body Corporate Fees. Not long after moving in, Mrs Abernathy was invoiced for her first month's body corporate fees. She was shocked and concerned as she had not considered these costs in her ongoing budget.
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3. Mr and Mrs Foote have fallen in love with a character bungalow and decide to make an offer after the salesperson assures them that the roof has recently been replaced and that the property has been completely rewired. Mr and Mrs Foote pay to get a building inspection done as a condition of their offer. The builder discovers that the property still has all the original wiring and that only a very small part of the roof has been replaced, with most of the roof in very poor condition. They do not proceed with the purchase and are upset that they wasted money on the building report.
4. The Clarke family attended an open home after a half page advertisement in their local newspaper caught their attention; it showed a spacious outdoor entertaining area with a swimming pool. The headline in the advertisement read ‘Large Private Outdoor Entertaining Area’. When arriving at the open home, the buyers were shocked and disappointed to see a large unit complex on the boundary of the property that was overlooking the entire outdoor area.
5. Martin and Wendy had seen a property they were keen to purchase so wanted to get their current home on the market as soon as possible. When the salesperson arrived, he told them he could get the property advertised straight away and planned to do an open home the next day. He asked Martin and Wendy to sign an agency agreement but said he would drop an appraisal back to them at a later stage. After 10 days of being on the market, Martin and Wendy had still not received an appraisal.
6. Mr and Mrs Bonito had been looking to buy a property that would generate income to assist with their mortgage. After their salesperson informed them of an ideal ‘home and income’ property he was marketing, the Bonitos viewed the home and their offer was accepted. Shortly after moving in, the Bonitos contacted a property management company to help find them tenants for the self-contained flat that was underneath the house. They discovered that the flat did not have the appropriate council consent to be rented out. They were advised the kitchen facilities would have to be removed, or they could go through a very costly process to have the property consented to comply as a legal home and income.
7. Greg and Nikita are preparing to move overseas; they are both listed on the title of their property as owners. Nikita has already gone overseas for work and Greg has stayed behind to prepare their house for sale. When the salesperson arrives to list the property, Greg advises the salesperson of
Nikita’s contact details, but the salesperson tells him that it is fine to just have
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his signature on the agency agreement and gives Greg a copy of the New Zealand Residential Property Agency Agreement Approved Guide. Nothing is forwarded to Nikita and Greg is not advised to seek legal advice before signing the agreement.
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Marking Schedule
Task 1 LO N/A Achieved
Identify relevant points of consumer protection law applicable to real estate practice in a range of contexts, by:
• Identifying any wrongdoing by the salesperson
• Identifying what legislation (if any) has been breached
• Identifying whether the Real
Estate Agents Act (Professional
Conduct and Client Care) Rules 2012 (the Code) has been breached
• Identifying what organisations would deal with such issues and why. LO 6 Inaccurate identification of wrongdoing in each scenario and the legislation that has been breached.
Inaccurate identification of whether the Real Estate Agents Act (Professional Conduct andC lient Care) Rules 2012 (the Code) has beenb reached in each scenario.
Inaccurate identification of organisations that deal with such issues in each scenario. Accurate identification of wrongdoing in each scenarioa nd the legislation that has been breached.
Accurate identification of whether the Real Estate
Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code) has been breached in eachs cenario.
Accurate identification of organisations that deal withs uch issues in each scenario.
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