• CPPDSM4022A - Sell and finalise the sale of property by private treaty

Assessor Resource

CPPDSM4022A
Sell and finalise the sale of property by private treaty

Assessment tool

Version 1.0
Issue Date: March 2024


This unit of competency supports the work of licensed real estate agents and real estate representatives involved in selling and finalising the sale of all types of property by private treaty.

This unit of competency specifies the outcomes required to sell and finalise the sale of all types of property by private treaty. It includes qualifying buyers, arranging for potential buyers to inspect listed properties, delivering effective sales presentations, submitting offers and negotiating property sale with sellers and buyers and maintaining communications with sellers and prospective buyers. It also includes monitoring the process between exchange of contracts and settlement for all types of property and businesses and preparing documentation for agency disbursements.

The unit does not include the sale of property by auction.

The unit may form part of the licensing requirements for persons engaged in real estate activities in those States and Territories where these are regulated activities.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

Nil


Employability Skills

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.




Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Overview of assessment

This unit of competency could be assessed through practical demonstration of selling different types of property using general real estate sales procedures and techniques in line with agency practice, ethical standards and legislative requirements affecting the sale of property. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of:

arranging and conducting property inspections for potential buyers

completing standard and statutory documentation associated with the sale of property

knowledge and application of approaches for qualifying buyers

knowledge of agency practice, ethical standards and legislative requirements affecting the sale of property and requirements associated with the transfer of ownership required for the legal sale of all types of property and businesses

knowledge of consumer protection principles that impact on the sale of property

maintaining business records associated with the sale of property

maintaining communications with sellers and buyers throughout the sale process

negotiating the sale of property with sellers and buyers

planning and delivering effective sales presentations to facilitate the sale of property

knowledge of agency practice and legislative requirements associated with agency disbursements

managing contracts for sale of property to settlement

monitoring the lodgement of documents for the correct transfer of ownership required for a legal sale of all types of property and businesses

preparing documentation for agency disbursements.

Context of and specific resources for assessment

Resource implications for assessment include:

access to suitable simulated or real opportunities and resources to demonstrate competence

assessment instruments that may include personal planner and assessment record book

access to a registered provider of assessment services.

Where applicable, physical resources should include equipment modified for people with disabilities.

Access must be provided to appropriate learning and/or assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.

Validity and sufficiency of evidence require that:

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence

all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence

where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills:

ability to communicate with and relate to a range of people from diverse social, economic and cultural backgrounds and with varying physical and mental abilities on matters associated with the sale of property

analytical skills to interpret documents such as contracts, legislation and regulations

application of risk management strategies associated with the sale of property

computing skills to access the internet and web pages, prepare and complete online forms, lodge electronic documents and search online databases

decision making and problem solving skills to analyse situations and make decisions consistent with legislative and ethical requirements associated with the sale of property

literacy skills to access and interpret a variety of texts, including legislation, regulations and contracts; prepare general information and papers; prepare formal and informal letters, reports and applications; and complete standard and statutory forms

negotiation skills to assist sellers and buyers to reach agreement on price and conditions of sale of property

numeracy skills to perform calculations associated with property sales

planning, organising and scheduling skills to make appointments with sellers and buyers in the process of selling property

research skills to identify and locate documents and information relating to sale of property.

Required knowledge and understanding:

agency disbursements, including:

authorisations, signatures and identifications that must be obtained prior to disbursement

calculation and protection of agency fees during disbursement activities

documentation for agency disbursements

financial transactions that take place at settlement

circumstances in which contracts are void, voidable or unenforceable, including:

illegality

lack of capacity

misrepresentation

mistake

consumer protection principles that impact on the sale of property, including:

cooling off provisions

false representations and misleading conduct in relation to the sale of land

impact of consumer protection legislation on contracts

insurance provisions

penalties and remedies for breaches

protection offered for consumers

rights and obligations of estate agents

secret commissions

contract construction principles, including:

acceptance

consideration

implied matters in contracts for sale of property

negligence

offer

contracts for sale of property, including:

chattels and fixtures

contract requirements for special circumstances, such as providing finance and sale of units and flats

defects in property

defects in title

effect of acceptance of title

prescribed or permitted forms

requisitions on title

special conditions

deposit funds, including:

capacity in which an estate agent holds deposit moneys

circumstances in which deposit moneys may be released by the estate agent to the seller

procedures an estate agent must follow when he or she receives deposit moneys from a buyer

ethical and conduct standards

general legal principles that affect property law relating to the sale of property, including:

adverse possession

contracts

easements

fee simple and life estates

general law system and the Torrens system of title

mortgages

real and personal property

restrictive covenants

types of interest in land

insurance

marketing aids

methods of sale, including:

auction

off the plan

private treaty

reverse auction

set sale

specialised properties

tender

negotiation techniques

property inspections

property sales, including:

after-sales procedures

agency and statutory documentation

sales presentation techniques

qualifying buyers

relevant federal, and state or territory legislation and local government regulations relating to:

anti-discrimination and equal employment opportunity

anti-money laundering

consumer protection, fair trading and trade practices

employment and industrial relations

financial services

OHS

privacy

property sales

risks and risk management strategies

settlement, including:

buyer's rights to inspect property prior to settlement

contingencies that may emerge prior to settlement and the actions that can be taken to avoid one or more parties being unable to fulfil contractual obligations

forms prepared at settlement

procedure for settling the sale of property

responsibilities of sellers and buyers

responsibility of seller and buyer with regard to building and content insurance prior to settlement

rights of sellers and buyers if either party is unable to settle on the due date

techniques for identifying needs and motivation of buyers

trust accounting in real estate.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below. Add any essential operating conditions that may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts.

Enquiries from potential buyers may be received through:

email

inspections

office

open houses

referral

telephone

website.

Appropriate rapport relates to use of techniques that:

establish and build confidence and trust in the agency and its representatives

make the buyer feel valued

promote and maintain an effective relationship with the buyer.

Buyer requirements may include:

access to transport and facilities

finance

location

price

purpose of purchase, such as for:

business

holiday

investment

private residence

settlement period

size of property

style of property.

Appropriate interpersonal communication techniques may include:

active listening

providing an opportunity for the seller or buyer to clarify their understanding of the sales process

soft questioning and seeking feedback from sellers or buyers to confirm own understanding of their needs and expectations

summarising and paraphrasing to check understanding of seller or buyer message

using appropriate body language.

Factors likely to influence the purchase of properties may include:

buying intentions

capacity to purchase

financial limits

motives

needs

preferences.

Customer due diligence may include:

availability of finance

identity verification

record keeping requirements

reporting requirements.

Legislative requirements may include:

relevant federal, and state or territory legislation and local government regulations relating to:

anti-discrimination and equal employment opportunity

anti-money laundering

consumer protection, fair trading and trade practices

employment and industrial relations

financial services

OHS

privacy

property sales.

Promotional materials may include:

agent and agency profile

brochures and pamphlets

posters

property descriptions

web page entry.

Effective questioning techniques may include:

active listening

clear questions

different question types

reflection

using silences.

Records of inspection may include:

buyer's reaction to property

buyer requirements

name and contact details of potential buyers.

Factors affecting the successful conclusion of a sale may include:

area and environment in which the property is located

availability of comparable properties

marketing preferences of seller

circumstances of seller and buyer

professional skills and resources of agent

state of the market for type of property

type and condition of property.

Key decision makers may include:

business associates

buyer's agent

family members and friends of buyer

providers of professional advice, including:

accountants

building advisers

financial advisers

legal representatives

property advisers

spouse or partner.

Presentation skills may include:

active listening

appearance

body language

use of information technology, such as website, virtual tours and online databases

use of support and promotional materials

voice.

Effective negotiation techniques may include:

analytical skills

listening techniques

non-verbal communication skills

personal attributes

presentation techniques

questioning techniques

speaking skills.

Effective techniques for dealing with conflict and breaking deadlocks may include:

calling in a third party

clarifying the positions of both parties

deferring the decision

preparing a compromise

restating the position

summarising the progress to date.

Effective techniques for closing sale may include:

alternate option close

assumption close

competition close

customer close

deal or concession close

direct close

indirect close

summary-of-benefits close

time-driven close.

Sale of property documentation may include:

contract of sale or real estate, contract note and contract for the sale of businesses

declaration of selling agent

financial statement to buyer

receipt for deposit

vendor's statement and trading statement.

Settlement requirements may include:

buyer settlement responsibilities, including:

anything the new lender requires, such as a notice of acquisition or a disbursement order

bank cheques for the balance of purchase money, plus or minus adjustments

seller settlement responsibilities, including:

any other documents necessary to provide a clear title to the buyer, such as discharge of mortgage, withdrawal of caveats change of name declaration

disconnection of services, such as water, gas, electricity and telephone

keys

notify rating and taxing authorities of sale

other services

title

transfer of land

value of land and chattels.

Deposit moneys may refer to:

capacity of agent to hold

capacity of agent to release to seller

procedures for receipt and banking.

Settlement agents and other assisting professionals may include:

accountants

conveyancers

financiers and financial institutions

landlords and managing agents

legal advisers

licensed settlement agents.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Enquiriesfrom potential buyers regarding purchase of property are handled promptly to enable high quality service delivery according to agency requirements. 
Appropriate rapport is established with potential buyer. 
Buyer requirements are clarified and accurately assessed using appropriate interpersonal communication techniques. 
Factors likely to influence the purchase of properties are identified and used to confirm buyer intentions. 
Customer due diligence is undertaken according to agency practice and legislative requirements. 
Potential buyers are provided with suitable information about available and prospective listings and assisted to find listing that best matches their requirements. 
Potential buyers are assisted in making a decision to view properties using information obtained from sellers and buyers. 
Qualified prospects are recorded to provide an opportunity to maximise future marketing activities. 
Appointments are made for property inspections in line with agency practice, ethical standards and legislative requirements. 
Preparations are made for property inspection in line with agency practice. 
Promotional material on the property is used to describe main sales features of the property. 
Effective questioning techniques are used to clarify buyer interest in the property. 
Records of inspections are accurately completed in line with agency practice. 
Factors affecting the successful conclusion of the sale are identified and addressed in the sales presentation. 
Key decision makers are identified to ensure that their needs and concerns are met in the sales presentation. 
Main features of property are matched to buyers' stated needs and motivation. 
Relevant legal and financial information is used to support the sales presentation. 
Effective communication and presentation skills are used to create buyer interest and focus buyer attention on the property. 
Buyer is given time and space to evaluate property while time is used to maximum advantage to promote property. 
Buyer is encouraged to clarify key aspects of property before a decision is made to purchase property. 
Buyer questions are answered fully and honestly. 
Details of offer to purchase property submitted by buyer are confirmed and documented. 
Offer from buyer is submitted to seller in line with agency practice, ethical standards and legislative requirements. 
Professional agency advice is provided to seller that incorporates declared knowledge of buyer's motivation. 
Negotiations are conducted with buyer according to seller response to offer. 
Negotiations are conducted in a professional manner, including showing respect for seller and buyer in line with agency practice, ethical standards and legislative requirements. 
Effective negotiation techniques are used to persuade and reach agreement between seller and buyer. 
Alternative offers are discussed and their viability assessed. 
Effective techniquesare used for dealing with conflict and breaking deadlocks where required. 
Effective techniques are used for closing sale. 
Mutually agreed price and conditions of sale are established and confirmed with seller and buyer. 
Relevant sale of property documentation is explained to seller and buyer in line with agency and statutory requirements for finalisation of the property transaction. 
Documented, agreed price and conditions of sale are made accessible that provide an accurate record of agreement and meet agency and statutory requirements for finalisation of the property transaction. 
Seller confidence in agency marketing activities is maintained through ongoing contact and correspondence. 
Communication is diarised to provide an accurate and objective record of progress reports to seller. 
Settlement requirements are identified and checked with relevant parties to minimise misunderstanding or breaches of contract in line with agency practice and legislative requirements. 
Requests from buyer to inspect property prior to settlement are facilitated in line with agency practice and legislative requirements. 
Information on buyer and seller responsibilities with regard to building and content insurance prior to settlement is provided in line with agency practice and legislative requirements. 
Procedures for holding and release of deposit moneys during the settlement period are implemented in line with agency policy and legislative requirements. 
Settlement within the contract's legal framework is ensured by liaison with settlement agents and other assisting professionals representing the seller and buyer. 
Progress of settlement agents and other assisting professionals is monitored in line with agency practice. 
Contingency plans are prepared in consultation with relevant legal agents to avoid the possibility of one or more parties to the transaction being unable to fulfil contractual obligations. 
Appropriate procedures are implemented if any party to the transaction is unable to fulfil contractual obligations. 
Effective communication techniques are used in liaising with seller, buyer and other parties representing the seller and buyer through the settlement process. 
Settlement financial transactions are checked for accuracy against contractual documentation, and agency fees are calculated and safeguarded during disbursement activities. 
Authorised agency disbursements are obtained within contractual, agency and statutory requirements. 
Financial systems are updated to reflect authorised transactions. 
Agency fees are calculated and safeguarded during disbursement activities. 
Due and proper attention is paid to obtaining required authorisations, signatures and identifications prior to disbursement. 
Nature of future contacts with prospects is assessed in the light of likely agency-client interaction to a given point in time. 
Business correspondence records are held on file to provide justification for the continuation or termination of contract, and are communicated without prejudice to the parties involved. 
Future business relations are established by mutual evaluation of seller and buyer satisfaction with services provided. 
Business records and databases are updated to facilitate networking and informed marketing strategy planning. 

Forms

Assessment Cover Sheet

CPPDSM4022A - Sell and finalise the sale of property by private treaty
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Assessment Record Sheet

CPPDSM4022A - Sell and finalise the sale of property by private treaty

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Assessment task 1: [title] Result: Competent Not yet competent

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