Property Management & Property Sales
CPPDSM4080A – Work in the real estate industry
CPPDSM4009B – Interpret legislation to complete agency work
CPPDSM4015B – Minimise agency and consumer risk
CPPDSM4012A – List property for sale
CPPDSM4008A – Identify legal and ethical requirements of property sales to complete agency work
CPPDSM4022A – Sell and finalise the sale of property by private treaty
CPPDSM4010A – Lease property
The remaining questions should take under 1200 Words.
Module 1:
Short Answer:
- What methods can an agent use to source information from the Regulatory Authority identified in Q5?
A: Legislation can readily be sourced online (www.legislation.qld.gov.au, www.legislation.gov.au, www.austlii.edu.au)
***TRAINER FEEDBACK : This is ways / methods you can source information from the regulatory authority being the OFT
- What methods can an agent use to source information from the Regulatory Authority identified in Q8?
A: Information about this can be sourced from The Federal Register of Legislation – www.legislation.gov.au
***TRAINER FEEDBACK : This is ways / methods you can source information from the regulatory authority being the OAIC
- Assume you check the Property Occupations Act and Residential Tenancies and Rooming Accommodations Act quite often. To save you having to search for these Acts online every time, you decide to save them both as a PDF file on your desktop or tablet. What is the downside of this record keeping practice?
Changes may be made to the Acts and the downloaded copy would become obsolete.
***TRAINER FEEDBACK : Expand – and so what can happen ? Exposure to risk ? ****
16A. List 3 Real Estate Employer responsibilities.
– Wages
– Employment terms
– Superannuation
**TRAINER FEEDBACK :Be specific in relation to their statutory obligations, check 5.2 of the learning guide****
- Explain how the agency can ensure their procedures are effective over time and are being complied with?
Provide at least three (3) procedures relevant to controlling risk.
The agency can conduct ongoing monitoring such as regular reviews and audits to evaluate personal information being gathered during the course of their business and whether it is really necessary, how personal information is used, whether all required disclosures of privacy matters are being made to tenants, sellers, buyers, lessors, consultancy clients, contractors and agency staff.
***TRAINER FEEDBACK : Expand and identify resources and tools to identify risk .refer to LG 12. 3***
Module 1:
Tasks and Dialogue:
- It’s the beginning of May, 2020. You are employed by Best Realty as a Property Manager. Best Realty are REIQ members and are supportive of the ongoing professional development of their team and are highly focused on risk management. The following (fictitious) training events are on offer in your area over the next six weeks.
REIQ Training Events:
- REIQ Specialised Training Event | Selling to overseas buyers | 9am – 12.00noon
- REIQ Property Management Breakfast | Topic: New updates to the RTRA Act | 7am – 9am
- Property Management team training at Best Realty | Skill Development Workshop | 10am – 11am
- Sales team training at Best Realty | Skill Development Workshop | 11am –12.00 noon
- RTA Webinar on the tenancy breaches | 2pm – 2.30pm
- Training event conducted by Fair Trading on pre-sales disclosures | 3pm – 5pm
- Annual Property Management Feature Day conducted by Property Power (assume they are a real and reputable training organisation). The theme this year is Risk Management for Property Managers | All day event
List the training events below you think would be most beneficial to you in your role.
– REIQ Property Management Breakfast
– RTA Webinar on the tenancy breaches
– Annual Property Management Feature Day conducted by Property Power
***TRAINER FEEDBACK : The 3 listed are correct however there is still one more specific to PM to be listed
- Dialogue Question
A client asks you for financial and insurance advice. You want to ensure you comply with the obligations of your role and stay within the limitations of your area of expertise. You also do not want to expose them to risk by incorrectly informing them.
By using effective communication skills what would your response to them be? Ensure you include who you will you suggest they talk to for specialist advice?
Hi Client, unfortunately this isn’t my area of expertise so I can’t really assist you with this. However I’d like to refer you to a colleague of mine (James) who is a specialist in this area and who I’m sure you’ll get along great with.
***TRAINER FEEDBACK : State the specific specialist advise you recommend for both financial matters and insurance
- Dialogue Question
Your colleague reads section 45(1) of the Property Occupations Act and tells you that his understanding is that to be eligible for a licence, he either has to be 18 years old, or have the approved educational qualifications. Check the wording of section 45(1) to decide if you agree with his interpretation or not.
Explain to your colleague how and why you have interpreted section 45(1). In your explanation be sure to point out the relevant wording you took into account.
Hi (Joe), I’ve just double checked section 45 of the POA and it doesn’t look like you’d be eligible. It says that to be eligible you must be at least 18 years old and have the approved educational qualification whereas you used the word or. The wording says that you must have both of these requirements.
***TRAINER FEEDBACK : This is a dialogue question so you need to be speaking to your colleague – you need to reference 45(1) of the act and explain the ” word ” that led you to arrive at your decision as to whether it is one of the requirements or both ***
Module 2:
Short Answer:
- You want to show a couple through a property at a private appointment. You have already qualified the buyers and have an understanding of their requirements. The seller currently lives in the property.
- A) List the steps you will take before the buyer arrives at the appointment. (consider property access, security systems, entrance, safety and property presentation)
– Make sure the correct keys are ready
– Deactivate the security system before buyer arrival (if applicable)
– Find the best entrance to use and ensure it is tidy
– Ensure the property is safe to show the buyer through
– Prepare to present the property in the best way to the buyer by ensuring rooms have natural light, property is at comfortable temperature and that the property is clean and tidy inside and out.
*TRAINER FEEDBACK : You are missing an initial step – access arrangements ?
- B) List the steps you will take while showing the potential buyers through the property.
– Give the buyer plenty of time to inspect each part of the property.
– Encourage the buyer to ask questions.
– Point out features of interest.
– Answer the buyer’s questions completely and honestly.
TRAINER FEEDBACK : There are a number of important steps missing – refer to manual 5.4 assess the list in this section and then choose the steps relevent to showing the potential buyers through the property***
- You want to clarify a buyer’s intentions and buying situation to help you decide which properties they are likely to be interested in buying. For each of the following elements, give one example of a question you will ask to find out more about the buyer’s requirements.
- Element: Wants and needs.
- Element: Circumstances and motivations.
- Element: Price range and financial capacity.
Wants and needs: What type of property are you looking for?
Circumstances and motivations: Are you searching for a home to live in, or an investment?
Price range and financial capacity: What price range did you have in mind?
***TRAINER FEEDBACK : Please also address a question regarding financial capacity ****
- B) Under contract term 9.9 what is the requirement of the buyer if payment is not paid when due?
The buyer must pay an interest rate published by the Queensland Law Society.
***TRAINER FEEDBACK : Expand in regards to the interest and what happens & how it is calculated?***
- D) What are the offenses listed under Commission and what is the maximum penalty price?
– Claiming commission worked out on an amount more than the actual sale price
– Retaining or suing for commission when not entitled (for example, not licensed or not authorised to act)
***TRAINER FEEDBACK : What is the maximum penalty amount
- Consider the following deadlock. Using your negotiation skills, what will you say to this buyer to persuade him to modify his offer as to increase the chance of the seller accepting it:
A buyer has ‘fallen in love’ with a property and has signed a contract to make an offer. They don’t want to miss out and the market is quite strong in the area at the moment. Their offer is $40,000 below list price, subject to finance, with a long settlement, and with a contract special condition that their solicitor has written, making the contract subject to settlement of the sale of the buyer’s property. The seller is not unhappy about the idea of a longer settlement, but doesn’t find the overall offer appealing. The sellers are rejecting the proposed special condition due to preferring a more certain contract.
I would highly recommend that you modify your offer to increase the likelihood of the owner accepting it. Currently your offer is $40,000 below the listing price and the market is quite strong in this area at the moment. I know how much you would like this property but the current offer you have made is just not appealing enough for the owner to accept.
**TRAINER FEEDBACK : Expand and read the last sentence in relation to what the owners are also rejecting, re-word on this basis. You need to negotiate the best price and terms for the seller. Also discuss how the seller may react to such a low offer and why it is in their interests to present their best offer **
- On Monday 18th July 2016 the contract is eventually signed by Akira as the prospective buyer for a sale price of $770,000. The seller is not available to meet with you until late that evening, so you present this offer to the seller when they are available. The seller accepts and signs the contract. The seller then asks you if you will wait until morning now to let Akira know that her offer has been accepted, given how late it is. Taking into consideration that the buyer is not aware that the offer has been accepted, how would you respond to the seller comments? Ensure you answer is worded as it would be said.
Sorry but I’ll have to let Akira know right away that you have accepted the offer, otherwise the offer could lapse.
**TRAINER FEEDBACK : Expand – what do you mean the offer could lapse – Explain in some detail the legal requirements for a contract in regards to offer and acceptance – refer to manual 6.4***
- B) As a registered salesperson you are required to understand the two major forms of landholding in Australia. Your licensee has asked you to explain what these two types are
– Freehold
– Crown Leasehold
Freehold land is identified as ‘fee simple’ on the title and means the owner owns the property ‘in perpetuity’ (permanently), Crown leasehold land is an interest in freeholding or perpetual lease where the owner owns the property only for the duration of the lease.
***TRAINER FEEDBACK : Expand on your explanation particularly for ” crown” in regards to ownership etc**
Module 3:
Short Answer:
| 1. Before agreeing to show a prospective tenant a property, you ask questions to find out more about their housing requirements, and to find out whether they are likely to meet your agency requirements. Provide one (1) question for each category below that you could ask a prospective tenant to establish their suitability.
A) Category: The prospective tenants rental price range:
B) Category: The prospective tenants housing needs:
C) Category: The prospective tenants ability to meet your agency’s requirement to show evidence of earnings:
D) Category: The prospective tenants ability to meet your agency’s requirement to provide references?
E) Category: The prospective tenants consent for your agency to perform checks on any commercial tenancy databases? |
A: What price range are you looking for?
B: Would you like a house or unit?
C: Would you be able to pay the bond upfront?
D: Could you provide me with some contact details for referees?
E: Do you consent to us checking the commercial tenancy database?
***TRAINER FEEDBACK : c) The questions is not specific to the criteria -(ie) it is asking for evidence of earnings – what could you ask them to provide to prove they can afford the property
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3. A) List the steps you will follow to conduct an open for inspection. In your answer ensure of the following is covered;
• Steps taken upon arrival to ensure the property presents well and is ready for viewing
• How you will familiarise attendees with the property when they arrive
• Any records you will create about the attendees and the inspection
• Your use of promotional materials
• How you will manage the keys
• How you will ensure security and safety to comply with OHS Act
• How you will check if the attendees are interested in the property |
– Arrive early, set up for wet weather if applicable
– Maintain a position where people arriving will be greeted.
– Ask attendees for name, contact information.
– Provide property brochures and floor plan.
– Get feedback when attendees leave.
– Keys will not be given out unless otherwise instructed by lessor.
– Security and safety will be managed by taking names and contact details with ID before entry and by asking existing residents (if applicable) to secure any valuable items.
***TRAINER FEEDBACK : You are missing a number of steps – refer to manual 2.5***
| 3. B) What are the benefits of conducting an open for inspection? |
| It allows more prospective tenants to view the property and could increase urgency to apply.
***TRAINER FEEDBACK :Expand with some more benefits – review LG 2.1
| 4. B) The selected tenant is notified that their application is approved & this is recorded in the agency database. The approved tenant have paid the bond before they are then given a copy of the tenancy agreement for the first time. Do you think this procedure complies with section 58 of the RTRA Act? |
| This procedure does not comply with section 58 of the RTRA Act.
***TRAINER FEEDBACK : Expand with an explanation of section 58 in your answer in some details ***
| 5. B) Area of Dispute: Tenant disagrees that they should pay for excessive water usage as the property is not water efficient.
1) Analysis of why the dispute arises
2) How can a professional property manager avoid this occurring? |
1: Tenant may not be aware of the agreement in regards to water charging.
2: Clearly explain how water consumption will be charged to new tenants entering an agreement.
***TRAINER FEEDBACK : Where can the details be recorded and explained to the tenant to ensure the tenant understands the usage charges – What is the Form number and name and what section of the document applies to water usage**
| 5. C) Area of Dispute: A month into the tenancy the tenant requests the carpet in the property be cleaned as they claim it was dirty at the commencement of the tenancy.
1) Analysis of why the dispute arises
2) How can a professional property manager avoid this occurring? |
1: The entry condition report provided to the tenant at the start of the lease was not detailed enough.
2: Entry condition reports need to be thorough and have photos to clearly show the tenant the condition of the property they will be leasing.
***TRAINER FEEDBACK – photos are definitely beneficial, what else could be provided as evidence that the carpet has been cleaned at the beginning of the tenancy, perhaps it could be attached to the entry condition report ***
12. Following on from Q11.
Assume Michael is replying positively to your questions and he now wants to inspect the property asap. You are not on the best of terms with the existing tenant who has been difficult throughout most of the tenancy. You have a specific procedure to carry out now to be able to facilitate this inspection. What is it? |
| The current tenant is served with an RTA Form 9 Entry Notice, providing 24 hours’ notice.
***TRAINER FEEDBACK ;Expand – As Michael wants to view ASAP – what method of delivery would you use to issue the notice – refer to LG -2.2 ***
| 17. Once an application has been approved by the owner, explain the statutory documents REIQ Realty will prepare and have available for the “Sign Up” appointment with the tenants. The property is part of a Body Corporate, although the complex does not have a pool and the tenant is required to pay a bond. |
| Statutory documents Form 1a, Form 2, Form 17a and Form 18a will be prepared by REIQ Realty for the sign up appointment.
Form 1a is an entry condition report which provides proof of the condition of the premises at the start of the tenancy. Form 2 is a Bond lodgement form which is used to lodge full or part of a rental bond. Form 17a is a pocket guide for tenants which outlines the tenant’s rights and responsibilities. Form 18a is a General tenancy agreement which must a copy must be given to before they are committed to, or pay any money in relation to the tenancy.
**TRAINER FEEDBACK : Good work as all 4 of these are correct however you are missing one important document HINT – the property is part of a body corporate a body corporate – refer to LG 4.2 ; Annexure E***
Module 3:
Tasks & Dialogue:
2B. Following on from task 2a, you are now required to send an email to the tenant to obtain their written approval to conduct an open home.
Hi Lita,
I just wanted to follow up on the open home we spoke about recently. I’ve attached a document with more details and would appreciate it if you could sign and it and send it back.
Kind regards,
Tim
***TRAINER FEEDBACK : Your email also needs to include all the details for the open inspection and reference the conversation you had on the phone in regards to the inspection . Advise the timeframe for returning the consent form to ensure you have received it back in time ***
4. A tenancy agreement has three tenants listed on the agreement and one approved occupant. State the keys which each of the tenants are entitled to receive from the lessor or agent at the commencement of the tenancy. As per section 210 – ‘Supply of locks and keys’ of the Residential Tenancy and Rooming Accommodation Act 2008 (RTRA Act.).
One tenant is still given a key to every lock as described, and the other tenants are required to be given their own set of entry keys that are needed to enter the property, building, and carpark.
***TRAINER FEEDBACK : Please expand and be specific naming the keys that would be issued for one tenant and also if an approved occupant – refer to LG 4.5 – also review section 210 of the RTRA Act ***
Dialogue: The lessor wants $750 per week on a periodic tenancy but the market is currently very quiet and the property has been vacant for over three (3) weeks.
You finally attract a tenant that will pay $735 per week on a six (6) months fixed term lease.
Give a brief explanation (in your own words) on how you will sell this to your lessor to get a win/win all round?
Since the property has been vacant for over 3 weeks I would recommend to the lessor that they accept the offer of $735 per week on a six month fixed term lease. I would explain to the lessor that accepting this lease would guarantee that the property is tenanted for 6 months rather than risk having it vacant for an even longer period of time.
***TRAINER FEEDBACK : Expand on your negotiation skills – perhaps reminding them of $$ lost being vacant and obtaining a win / win situation for all parties involved , the benefit of fixed term lease etc – refer to manual 3.5** |
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