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Evidence Guide: CPPDSM4060A - Negotiate sale and manage sale to completion or settlement

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

CPPDSM4060A - Negotiate sale and manage sale to completion or settlement

What evidence can you provide to prove your understanding of each of the following citeria?

Qualify buyer.

  1. Appropriate rapport is established with buyers and their enquiries are handled promptly to enable high quality service delivery according to agency requirements.
  2. Buyer requirements are clarified and assessed using appropriate interpersonal communication techniques.
  3. Potential buyers/lessees are provided with information about available and prospective listings and assisted to find the listing that best matches their requirements.
Appropriate rapport is established with buyers and their enquiries are handled promptly to enable high quality service delivery according to agency requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Buyer requirements are clarified and assessed using appropriate interpersonal communication techniques.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Potential buyers/lessees are provided with information about available and prospective listings and assisted to find the listing that best matches their requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide information to clients.

  1. Appropriate rapport is established with sellers/buyers and their enquiries are handled promptly to enable high quality service delivery according to agency requirements.
  2. Seller/buyer requirements are clarified and assessed using appropriate interpersonal communication techniques.
  3. Preparation and presentation of documents are discussed with seller to assist in best promoting business for sale.
  4. Buyers and sellers are encouraged to seek clarification as required and are assisted to make an informed choice.
Appropriate rapport is established with sellers/buyers and their enquiries are handled promptly to enable high quality service delivery according to agency requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seller/buyer requirements are clarified and assessed using appropriate interpersonal communication techniques.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Preparation and presentation of documents are discussed with seller to assist in best promoting business for sale.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Buyers and sellers are encouraged to seek clarification as required and are assisted to make an informed choice.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage negotiation.

  1. Factors that may affect success of a sale are identified and accounted for in negotiations with sellers and buyers.
  2. Relationships between the parties are managed according to agency requirements.
  3. Action plans are implemented to assist in moving negotiations through to successful completion.
  4. Potential areas of conflict between seller and buyer are managed and resolved to the satisfaction of parties to facilitate sale/lease.
  5. Documentation for impending sale/lease is completed with due consideration of legislative and industry requirements and seller and buyer requirements.
Factors that may affect success of a sale are identified and accounted for in negotiations with sellers and buyers.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relationships between the parties are managed according to agency requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Action plans are implemented to assist in moving negotiations through to successful completion.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Potential areas of conflict between seller and buyer are managed and resolved to the satisfaction of parties to facilitate sale/lease.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Documentation for impending sale/lease is completed with due consideration of legislative and industry requirements and seller and buyer requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Execute contract.

  1. Seller/landlord is provided with clear information about offer and encouraged to make an informed and positive choice regarding the sale/lease of the business.
  2. Deposits are secured and appropriate arrangements are made to administer the deposit on subsequent settlement.
  3. Arrangements for exchange of contracts are completed according to agency and legislative requirements.
  4. Feedback is collected and provided to personnel and agencies involved in the sale according to legislative requirements.
  5. Recommendations on future directions of sales processes and completion rates are made based on verifiable evidence.
Seller/landlord is provided with clear information about offer and encouraged to make an informed and positive choice regarding the sale/lease of the business.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Deposits are secured and appropriate arrangements are made to administer the deposit on subsequent settlement.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Arrangements for exchange of contracts are completed according to agency and legislative requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Feedback is collected and provided to personnel and agencies involved in the sale according to legislative requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recommendations on future directions of sales processes and completion rates are made based on verifiable evidence.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage contract to settlement.

  1. Standard and special conditions are completed in line with agency and legislative requirements.
  2. Progress of contract is monitored in line with agency practice.
  3. Progress of assisting professionals is monitored in line with agency practice.
Standard and special conditions are completed in line with agency and legislative requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Progress of contract is monitored in line with agency practice.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Progress of assisting professionals is monitored in line with agency practice.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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 negotiating and executing the sale of a listed business within the context of a business brokerage. 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:

analysing sales process, buyer intentions and seller expectations

communicating and negotiating with relevant parties and monitoring the sales process to ensure successful completion of the sale of the business

documenting and distributing information to all parties pertaining to the sale

knowledge of agency practices, ethical standards and legislative requirements associated with negotiating and executing the sale of a listed business

preparing and structuring information and documents relating to the negotiation and completion of a sale.

Context of and specific resources for assessment

Resource implications for assessment include:

access to suitable resources and simulated or real opportunities 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.

Required Skills and Knowledge

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

Required skills:

access a variety of information relating to selling a business

determine most appropriate sales methods

identify current market trends and positions

interpersonal communication and negotiation skills to negotiate and execute a sale

interpret and comply with relevant legislative requirements

liaise with sellers, buyers and their respective agents and other staff

obtain information relevant to selling a business and provide information on the sales process and its progress

relate to people from a range of social, cultural and ethnic backgrounds and of varying physical and mental abilities

resolve potential negotiation dilemmas, buyer or seller concerns and issues, and conflict arising from the sale process

select and use appropriate technology.

Required knowledge and understanding:

agency's business structure

conflict resolution techniques as they relate to sales processes

interpersonal communication and negotiation techniques

mechanisms to obtain and analyse buyer or seller comments and feedback

organisation's policy and procedures for client service and sales, including ethical behaviour and marketing procedures

principles and techniques for communicating concerns to buyers and sellers

principles and techniques for selling a business

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

anti-discrimination

business broking

consumer protection

environmental issues

equal employment opportunity

financial probity

franchise and business structures

industrial relations

OHS

selling a business, particularly through an agency

risk factors relating to various transactions

service standards and best practice models

types of sales techniques and benefits and limitations of each for a variety of clients and settings.

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.

Appropriate rapport relates to use of techniques that:

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

make the seller or buyer feel valued

promote and maintain an effective relationship with the seller or buyer.

Agency requirements may be outlined within:

access and equity policy, principles and practice

business and performance plans

ethical standards

goals, objectives, plans, systems and processes

legal and organisational policies and guidelines

mission statements and strategic plans

OHS policies, procedures and programs

privacy and confidentiality requirements

quality and continuous improvement processes and standards

quality assurance and procedures manuals, including sales and client liaison procedure manuals.

Appropriate interpersonal communication techniques may include:

active listening

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

soft questioning and seeking feedback from the seller or buyer to confirm own understanding of their needs and expectations

summarising and paraphrasing to check understanding of seller or buyer's message

using appropriate body language.

Information may include:

advantages of various purchases and purchasing options

seller's views on sale of business or lease of property

business profile portfolio

levels of interest in business

packaging and presentation of sales proposal to the prospective seller.

Factors may include:

arranging appointments

buyer capacity

buyer credentials, including financial position

buyer entity or status

buyer needs

confidentiality agreements

involvement of third or other parties in process and negotiations

legal documentation and agreements regarding sales

seller motivation and requirements.

Action plans may include:

arrangements for obtaining deposits

arrangements for suitable inspection times

arrangements to secure seller's initial interest

arranging and facilitating a stocktake

attending to legal requirements, including preparation and exchange of required legal documents

contingency plans to accommodate changes and resolve complications

developing the terms of contract

strategies for maintaining relationships between the parties during negotiation and providing exchange of information directly or via third parties/agents

strategies to ensure time lines are met.

Potential areas of conflict may relate to:

inventory, fixtures and fittings, valuations and determining level of goodwill

involvement of agents and other parties

price

pricing structure

responsibility for future employee entitlements

sales process

time lines

transfer and transitional arrangements.

Legislative and industry requirements may include:

access and equity policy, principles and practice

business and performance plans, including organisational goals and objectives

client service policies

industrial awards

industry and agency codes of conduct and practice, and code of ethics

legislative and statutory requirements for provision of business brokerage services

legislative and statutory requirements for the sale of a business or provision of business brokerage services to sell a business

OHS policies, procedures and programs

organisational policy, guidelines and requirements

policies and procedures relating to own role, responsibility and delegation

records and information systems

reporting and communication structures

terms and conditions of employment.

Seller and buyer requirements may include:

clarification of business structure

need for quick sale

need for transparency

need to specify plant, equipment, fittings and fixtures to determine ownership

transfer of franchise agreements

transitional arrangements

use of business name.

Feedback may be collected from:

formal and informal discussions with existing and previous clients

information from potential buyers

information provided by others involved in the appraisal process, both internal and external to the organisation

market share data

sales and completion results.

Standard and special conditions may include:

additional options

assign new lease, option, site licence or variation

transfer or renewal of licences and permits

franchise agreements

intellectual property, such as business names, patents and copyrights

trademarks

domain names and email addresses

telephone and facsimile numbers.

Assisting professionals may include:

accountants

financiers and financial institutions

landlords and managing agents

legal advisers

licensed settlement agents

nominated conveyancers.