ASSESSMENT TASK 4
Assessment Task 4: Case studies
What you need to do:
Read each case study and respond to the questions, referring to Acts and regulations
What you will need:
Research materials such as books, internet, magazines, workplace documentation etc
A copy of the relevant estate agents Act in NSW
What you need to submit:
Type up your responses to each case study in Microsoft Word and submit a printed copy for assessment.
Submit any documentation/forms required.
Case study 1
Chris is the principal agent at City Real Estate. He has built the agency over the last six years and he has established a strong client base and reputation within the local region. He has several experienced employee
agents working for the agency.
Bethany has been working as administration manager for City Real Estate since its inception and has worked closely with Chris to build the business. She displays a keen interest in the real estate industry and over the
years has developed an excellent working knowledge of various aspects of an agent’s role. She has decided to undertake training to become a registered property manager.
Chris was recently offered a teaching position at a local TAFE. As a result he is spending less time in the office, sometimes not coming into the office for days in a row. He is confident that the staff will continue to provide
Last week one of the agents responsible for property management resigned and Chris has asked Bethany to conduct some urgent rental property inspections and prepare the condition reports.
- a) Identify any breaches under the relevant Act for your state or territory. You must refer to the appropriate section.
- b) What advice would you give Bethany and Chris?
- c) How will any breach of the Act impact on Bethany’s eligibility to be an agent?
SESSMENT TASK 4
Case study 2
Marissa is a registered salesperson with ABC Real Estate. Graham is looking to purchase an apartment in an inner city suburb and has shown keen interest in a small apartment that Marissa has listed. Graham tells Marissa that he is looking for an apartment in a quiet area as he works night shift and needs to sleep during the day, especially on weekends.
Marissa is excited because this apartment has been listed for over two months and she really wants to close the sale before she goes on holiday next month. However, she knows that the apartment block backs on to a street that has a church. Each Sunday morning, church bells are rung and the area can become quite noisy as people come and go.
- a) Should Marissa tell Graham about the church? Discuss the ethical issues relating to this scenario.
- b) What advice would you give Marissa?
Case study 3
Rashid has engaged Rita to sell his property. Rita’s brother, Marco, is looking for a house in the area and after viewing the house; she believes that the house is exactly what Marco is looking for. She rings Marco to tell him about the house.
- a) Which section of the Act relates to an agent purchasing property?
- b) Outline the requirements of the section?
- c) Do the requirements of this section apply to Rita’s situation? Explain why/why not.
- d) Are there any exemptions to the section requirements? If yes, what are they?
- e) What penalties apply for breach of the section?
- f) What advice would you give Rita in relation to her actions in this matter?
Case study 4
Read through the following case study and complete the tasks below.
You have been approached by Dominic and Tina Azzopardi to sell their property which is located in Drummoyne. The couple have lived in the house for thirty years and now that their children have left home, they have decided to purchase a smaller house. They have put a deposit on a house in an outer eastern suburb and are looking for a fairly quick sale on the house.
The house is located on a major arterial road on a block of land that is approximately 475m2. The house has three double bedrooms, central bathroom, separate lounge and kitchen/dining area and separate laundry.
Features include ducted heating and evaporative cooling, an established rear garden with patio, off street parking via rear ROW.
The house is in a liveable condition; however, it is showing signs of age.
The house is in a central position, close to public transport, shops and schools.
- a) What advice would you give Dominic and Tina in regards to their options for selling the property? You will need to recommend the best method of selling the property (auction or private sale). List the benefits of the method
that you select.
ASSESSMENT TASK 4
After conducting an appraisal of the property, you estimate the selling price at $900,000 – $980,000. Dominic and Tina are happy with this and ask you to go ahead and list the house for sale.
- Address of property – 263 Bell Street, Drummoyne
- Exclusive Authority
- Chattels included in the sale – All fixed floor coverings, drapes, blinds and fixed electric light fittings
- Terms of sale – 10% deposit on signing and the balance in 60 days
- Vendor’s asking price – $980,000
- Agent’s estimated price range – $900,000 – $980,000
- Agent’s fees including GST – 3.3% of the selling price
- Marketing expenses including GST – Advertising $3,000
- b) Complete an authority to sell (submit as part of your assessment for this task).
- c) Describe the strategies that you will use to market the property.
- d) At the auction, the property is knocked down to Andrea Atkins who made a successful bid of $960,000.
Describe the process, including any legislative requirements, from acceptance of the final bid through to settlement.
- e) Consider the following situations and issues and, referring to the relevant legislation, explain any legal and/or ethical requirements in relation to property sales.
- i) In estimating the selling price you recommend a price range of $900,000–$980,000
- ii) The local newspaper offers you a discount of 15% on advertising costs for this property as your agency is a regular and reliable customer.
iii) You are approached by a potential buyer who wants to buy the property, tear down the house, build two units and lease them. He offers $890,000 and tells you that if you can get the vendor to accept this price,
he will use your agency to manage the properties. What are the possible consequences if you were to agree to the buyer’s proposal?
- iv) You are approached by a potential buyer who makes an offer of $900,000. You believe that the house will sell for more at auction so you do not pass on the offer to the vendors. At auction, the property is passed in
as it does not make the reserved price.