CPPDSM6011A
Negotiate partnership arrangements in the property industry

This unit of competency specifies the outcomes required to establish a formal partnership for property investment. It requires the ability to research and select a preferred partner and negotiate and formalise a partnership strategy for investment in property. The unit may form part of the licensing requirements for persons working in the property industry, including in the real estate, business broking, stock and station agency and property operations and development sectors, in those States and Territories where these are regulated activities.

Application

This unit of competency supports the work of those involved in establishing formal partnerships for property investment.


Prerequisites

Nil


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1Determine investment requirements.

1.1 Property investment requirements are determined in consultation with relevant people.

1.2 Client needs are accurately assessed and clarified using appropriate research and survey techniques and consultative processes.

1.3 Relevant documentation and legislation are assessed to ensure investment options comply with investment requirements.

1.4 Reliable methods for gathering information are used, making efficient use of time and resources.

1.5 Applicable legislative, ethical and organisational requirements are interpreted and applied.

2Research partnership opportunities.

2.1 Desired investment partnership arrangements are determined in consultation with client and relevant people.

2.2 Criteria for potential partners are established in line with investment, client and organisational requirements.

2.3 Listing of potential partners is established and confirmed with client according to organisational procedures.

2.4 Identified partner preferences, needs and expectations are clarified and addressed using appropriate communication techniques.

2.5 Preferred partner is selected based on assessment against specified criteria and in line with client preferences.

3Develop negotiation strategy.

3.1 Strategy is developed for negotiation of partnership offer, according to client preferences, needs and expectations.

3.2 Strategy includes details of timetables, budget and negotiation parameters.

3.3 Negotiation strategy is established that complements workable partnership relationships.

3.4 Potential conflict situations are identified and strategies developed to manage, resolve and facilitate partnership arrangement.

3.5 Situations requiring specialist advice are identified and addressed.

4Negotiate partnerships.

4.1 Negotiations are conducted in a professional manner and maintain a focus on client interests and agreed negotiation strategy.

4.2 Problems are identified, analysed and addressed with minimal disruption to achievement of client objectives.

4.3 Communication styles and methods are adapted to meet preferred individual negotiation style.

4.4 Interactions are conducted in a manner that reflects sensitivity to individual social and cultural differences.

4.5 Appropriate facilitation skills are used to promote a professional environment that supports and promotes participation throughout negotiations.

5Establish partnership arrangements.

5.1 Partnership arrangements are established and confirmed according to client requirements.

5.2 Financial arrangements are finalised according to negotiated terms and conditions.

5.3 Documentation is prepared using business equipment and technology and formalised reflecting agreed arrangements.

5.4 Client is advised of formal partnership arrangements and feedback is received on process and outcomes.

5.5 Information is securely maintained with due regard to client confidentiality, and legislative and organisational requirements.

Required Skills

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

Required skills:

analytical skills to identify and assess potential partners and identify potential areas of conflict

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

interpersonal skills to relate to people from a range of social, cultural and ethnic backgrounds and varying physical and mental abilities and to adjust communication style to suit negotiations

negotiation skills to direct focus of people involved in negotiation, negotiate agreement of all parties and resolve conflict and problems arising during negotiation

organisational skills to coordinate assessment and selection process, conduct negotiation process and develop and complete strategies within established timeframes

research skills to analyse and interpret property investment documentation and identify relevant sources of information

technology skills to use financial and assessment software and spreadsheets, and to develop and present information.

Required knowledge and understanding:

a range of research methods and analytical techniques

budgeting

concepts and strategies for investing capital in property

current property and investment markets

ethical practices and relevant codes of conduct

industry benchmarks

investment risk factors and relationship to return expectations

legal processes

local property market conditions and overall trends in the industry

negotiation strategies

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

anti-discrimination

consumer protection

environmental issues

equal employment opportunity (EEO)

financial probity

franchise and business structures

industrial relations

OHS

privacy

property sales, leasing and management

sources of funding

taxation as it applies to property development.

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 practical demonstration of establishing a formal partnership for property investment. 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:

conducting negotiations using effective communication and facilitation methods

determining investment requirements and objectives through effective consultative processes and identifying required legislative compliance

developing a negotiation strategy that includes timetables, budget and negotiation parameters and addresses potential areas of conflict

formalising and documenting partnership arrangements, showing evidence of agreement by all parties to the arrangement

identifying and selecting potential partnership arrangements using criteria developed for assessment and selection

knowledge of organisation's practices, ethical standards and legislative requirements associated with establishing formal partnerships for property investment.

Context of and specific resources for assessment

Resource implications for assessment include:

a registered provider of assessment services

assessment materials and tools

candidate special requirements

competency standards

cost and time considerations

suitable assessment venue and equipment

workplace documentation.

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 activity and must include evidence relating to each of the 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.

Property investment may include:

concepts and plans

strategies and placement of capital in property for investment

productive use of property and assets

customer service outcomes.

Relevant people may include:

accountants

agents

analysts

clients

government personnel

legal representatives

management and colleagues

members of industry associations

site personnel

taxation specialists.

Clients may include:

developers

financial institutions

fund managers

individuals

internal and external property groups

investment organisations

joint ventures

owner-occupiers

partners

unit trustees.

Consultative processes may include:

face-to-face meetings

telephone, facsimile and written communication.

Documentation may include information relating to:

bank reports

budgets and other financial reports

contracts and other legal papers

cultural variations

general knowledge of industry

government statistics

industry reports and indices

market intelligence

media reports

published analytical reports.

Legislation may be outlined and reflected in:

Australian Securities and Investments Commission, Australian Competition and Consumer Commission, Foreign Investment Review Board requirements

Australian standards

federal and state taxation requirements

consumer protection laws and guidelines

court and tribunal precedents

environmental and zoning laws affecting access security, access and property use

freedom of information

home building requirements

licensing requirements

privacy and confidentiality requirements and laws applying to owners, contractors and tenants

public health

quality assurance and certification requirements

relevant common law

relevant federal, and state or territory legislation and regulations affecting organisational operation, including:

anti-discrimination and diversity

environmental issues

EEO

industrial relations

OHS

relevant industry codes of practice covering the market sector and industry, financial transactions, taxation, environment, construction, land use, native title, zoning, utilities use (water, gas and electricity), and contract or common law

relevant local government policies and regulations

strata, community and company titles

tenancy agreements

trade practices laws and guidelines.

Resources may relate to:

materials

personnel

tools and equipment

training

transport.

Organisational requirements may be outlined and reflected in:

access and equity principles and practice guidelines

business and performance plans

complaint and dispute resolution procedures

goals, objectives, plans, systems and processes

legal and ethical requirements and codes of practice

mission statements and strategic plans

OHS policies, procedures and programs

policies and procedures in relation to client service

quality and continuous improvement processes and standards

quality assurance and procedure manuals.

Partners may include:

banks

builders

corporations

developers

government instrumentalities

other financial institutions

other investors

private individuals

tenants.

Communication techniques may include:

active listening

clear presentation of options

consultation methods

culturally inclusive and sensitive engagement techniques

questioning to clarify and confirm understanding

seeking feedback

two-way interaction

using language and concepts appropriate to cultural differences

verbal or non-verbal language.

Assessment may include:

establishing that potential partners are bona fide

verifying financial credentials.

Negotiation techniques should include:

clearly presenting options and consequences

control of tone of voice and body language

demonstrating flexibility and willingness to negotiate

using positive, confident and cooperative language

using language and concepts appropriate to the people involved

using strategic questioning and listening to gather information and direct the focus of people involved

using summarising of positions and agreements to move understanding.

Conflict situations may include:

accidents resulting in injury

arguments and disagreements

conflicts between members of the public

destruction of property

ejection of persons

persons suffering from emotional distress or mental illness

persons under the influence of intoxicating substances

persons with criminal intent

refusals to follow directions and guidance

riots and demonstrations

situations affecting the security of self, others or property.

Specialist advice may be sought from:

analysts

architects

bankers and financiers

government officials

investment consultants

members of industry associations

planners

real estate agents

solicitors

valuers.

Social and cultural differences may be expressed in:

beliefs, values and practices

conventions of gender and sexuality

cultural stereotypes

dress

food and diet

religious and spiritual observances

social conventions

traditional practices and observations

verbal and non-verbal language.

Business equipment and technology may include:

computers

data storage devices

email

facsimile machines

internet, extranet and intranet

photocopiers

printers

scanners

software applications, such as databases and word applications.

Feedback may be sought from:

clients and their legal representatives

supervisors and colleagues

formal and informal performance appraisals

workplace assessment.


Sectors

Unit sector

Property development, sales and management


Competency Field

Property operations and development


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