CPPDSM4008A
Identify legal and ethical requirements of property sales to complete agency work

This unit of competency specifies the outcomes required to meet the core legal and ethical requirements associated with property sales. This includes awareness of the legislation relating to property sales, the role and responsibility of agency personnel in property sales, the administration of sales transactions and the completion of sales documentation.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.

Application

This unit of competency supports the work of licensed real estate agents and real estate representatives involved in property sales. It addresses the requirements for licensed real estate agents and real estate representatives to be able to identify and explain relevant legislation, roles, responsibility and documentation.


Prerequisites

Nil


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1Develop knowledge of property sales.

1.1 Types and characteristics of land tenure systems are identified in line with legislation.

1.2 Legislation regulating the sale of properties is identified in line with agency practice.

1.3 Information provided on the Certificate of Title is checked for accuracy against the agency agreement.

1.4 Types of property ownership are identified in line with legislation.

1.5 Legal requirements relating to the sale of property are identified and interpreted in line with legislation and agency requirements.

1.6 Requirements of ethical and conduct standards and consumer protection and privacy legislation in relation to the sale of property are identified in line with legislative requirements and agency practice.

2Develop knowledge of sales process.

2.1 Need for demonstrating effective communication strategies in establishing rapport with clients, determining client needs, providing accurate advice, addressing client concerns and dealing with conflict is identified in line with agency practice.

2.2 Listing opportunities are identified and assessed in the context of legislative requirements and agency practice.

2.3 Methods of selling property are identified and assessed in the context of legislative requirements and agency practice.

2.4 Sale authority agreements are identified, completed and stored in line with legislative requirements and agency practice.

2.5 Strategies for marketing property are identified and assessed in the context of legislative requirements and agency practice.

2.6 Purpose and terms of statutory statementsrequired to be prepared by sellers for the sale of property and businesses are identified and interpreted in the context of legislative requirements and agency practice.

2.7 Contractual documents relating to the sale of property are identified, interpreted, completed and stored in line with legislative requirements and agency practice.

2.8 Process for settling the sale of property is identified in the context of legislative requirements and agency practice.

2.9 Processes for receipt, recording, banking and release of deposit moneys are identified in the context of legislative requirements and agency practice.

3Identify roles and responsibilities of sales personnel.

3.1 Relationship between salesperson and agency principal is identified in the context of legislative requirements and agency practice.

3.2 Roles and responsibilitiesof agent in sale of property including general disclosure requirements are identified, interpreted and assessed in the context of legislative requirements and agency practice.

3.3 Restrictionson agents purchasing property and sanctions for violations of restrictions are identified, interpreted and complied with in line with legislative requirements and agency practice.

3.4 Controls and sanctions on secret commissions are identified in the context of legislative requirements and agency practice.

3.5 Entitlements and commissions for agents are identified and calculated in the context of legislative requirements and agency practice.

Required Skills

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

analytical skills to interpret documents such as legislation, regulations, contracts, contract notes, sale authority documents and Certificates of Title

computing skills to access agency and resource databases, use standard software packages, send and receive emails, access the internet and web pages, and complete and lodge standard documents online

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

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

negotiation skills required for interacting with sellers and buyers

numeracy skills to calculate and interpret data, such as deposits, entitlements and commissions

planning, organising and scheduling skills to undertake work-related tasks, such as preparing correspondence, organising deposits and arranging property inspections

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

risk management skills to identify risks associated with discussing sale and purchase options with sellers and buyers

self-management skills to organise own work, deliver quality customer service and effectively manage competing demands

teamwork skills to work effectively in and promote communication between sales, property management and administrative teams in an agency environment

verbal communication skills required for face-to-face communication with real estate sellers and buyers.

Required knowledge and understanding:

agent entitlements and commissions

contract law in the real estate industry, including agent liability for breach of contract and negligence

ethical and conduct standards relevant to licensed real estate agents and real estate representatives

key principles of consumer protection and privacy legislation

key principles and terminology of property law

legislative limitations on agency practice

offences and penalties under legislation

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

anti-discrimination and equal employment opportunity

consumer protection, fair trading and trade practices

employment and industrial relations

financial services

OHS

privacy

property sales

risk and risk management strategies

roles and responsibilities of estate agency personnel in relation to the sale of property

sales process, including ways of obtaining listings, methods of selling property, strategies for marketing property, and the process for settling the sale of property

trust funds and legislative controls on trust funds.

Evidence Required

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 case studies, demonstrations, practical exercises and targeted written (including alternative formats where necessary) or verbal questioning relating to the legal and ethical requirements of property sales. The case studies, 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:

ability to communicate effectively and accurately with clients

application and knowledge of ethical and conduct standards and key principles of consumer protection and privacy in relation to the sale of property

application and knowledge of the sales process, including ways of obtaining listings, methods of selling property, strategies for marketing property, and the process for settling the sale of property

application and knowledge of accurately completing statutory and agency sales documentation, including authorities and contracts

application and knowledge of the legislation and regulatory framework relevant to the sale of property

application and knowledge of the role and responsibilities of the agent in the sale of property, including the legislative restrictions on agents purchasing property and the controls and sanctions associated with secret commissions.

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.


Range Statement

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.

Land tenure systems may include:

freehold or fee simple

leasehold.

Legislation may include:

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

anti-discrimination and equal employment opportunity

consumer protection, fair trading and trade practices

employment and industrial relations

financial services

OHS

privacy

property sales.

Certificate of Title may include:

a plan of the land

details of caveats over the land, such as easements and covenants

lot, plan and subdivision

names of registered proprietors

names of the mortgagees and dates of registration and discharge

volume and folio numbers.

Types of property ownership may include:

company ownership

joint tenants

sole owner

tenants in common.

Effective communication strategies may include:

active listening

being non-judgemental

exploring problems

expressing an individual perspective

providing sufficient time for questions and responses

providing summarising and reflective responses in conflict situations

using appropriate words, behaviour and posture

using clarifying and summarising questions

using clear and concise language

using culturally appropriate communication

using plain English

using verbal and non-verbal communication.

Listings may include:

advertising

after-sales letters

builders and developers

callers to the office

conjunctions and multiple listings

farming

open for inspections

owner boards and seller advertisements

recommendations

telemarketing.

Methods of selling property may include:

alternative sales methods, such as set sales

auction

conjunctional sales

private sale or treaty

sale by tender

vendor sale.

Sale authority agreements may include:

auction authority

exclusive sale authority

general sale authority

sole sale authority.

Statutory statements required to be prepared by sellers may include:

additional vendor's statement

vendor's statement

statement for the sale of a small business.

Contractual documents may include:

contract note

contract of sale of real estate

finance statement to buyers

prescribed or permitted forms used by agents in property sales

release of deposit moneys.

Roles and responsibilitiesof agent in sale of property may include:

agreement to sell

communication

completing contract documents

ethical and conduct standards

general disclosure requirements

legal responsibility

listing

marketing

negotiating sale terms and conditions

office procedures for presenting the property

prospecting

providing information to buyer

sale settlement.

Restrictions on agentspurchasing property may include:

restrictions on licensed real estate agents and real estate representatives

restrictions on support staff

restrictions on the spouse or domestic partner, parent, brother, sister or child of licensed real estate agents or real estate representatives.


Sectors

Unit sector

Property development, sales and management


Competency Field

Real estate


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.


Licensing Information

Refer to Unit Descriptor