GET ANSWERS FOR ALL REAL ESTATE ASSESSMENTS
This unit of competency specifies the outcomes required to enable a new entrant to the industry to
gain a basic understanding of the industry and work ethically and effectively in a real estate agency.
This includes awareness of ethical and conduct standards, core functions of real estate agency
operations, legislative and regulatory framework within which the industry operates and industry
employment requirements.
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.
This unit of competency supports the work of licensed real estate agents and real estate
representatives.
In this unit you will learn how to:
• Develop knowledge of estate agency operations
• Interpret and comply with legislative and agency requirements
• Model ethical practice
• Identify industry employment requirements
Key features of the agency principle relationship There are several key features of the agency principle relationship. These include:
• The concept of agency involves:
o The principal – the person who instructs the estate agent and who the estate
agent represent.
o The agent – who is authorised to represent the principal.
• The contract of agency in real estate is the legal relationship that is formed when the
principal (vendor or landlord) appoints the agent to arrange a transaction on the
principles behalf, evidenced by a written authority to do so.
• The agent is authorised to represent the principal to find a third party who is willing to
agree to the principal’s terms. The principal and the third party then enter into a binding
contract between them
When interpreting this relationship, you will need to ensure you have a full understanding of the
legislative requirements and the agency practice. Throughout this resource, we will be referring to
and explaining legislative requirements and agency practice in more detail. For now, we will list the
legislative requirements which relate to:
• Anti–discrimination and equal employment opportunity
• Consumer protection, fair trading and trade practices
• Employment and industrial relations
• Financial services
• OHS/WHS
• Privacy
Features of good agency practice
• Provision of the following information to the public:
o Displaying of licence in a visible position at every premises where business is
conducted
o Advertising – all advertising must include the name of the agency in all
advertisements connected with the real estate business
o Including the name of the estate agency on all public documentation including
letterheads and business documents
• Complying with all licencing and eligibility requirements
• Complying with any disclosure required for commission sharing
• No conflict of interest
Licensed real estate agent Real Estate Agents perform a range of duties which vary depending on their area of specialisation,
the type of property, and their level of experience. These responsibilities may include:
• Deciding the method of sale, costs and inspection times with the property owner or seller
• Analysing market pricing and trends and recommending a reserve or minimum selling
price
• Organising the listing and advertising of properties for sale
• Meeting with buyers to understand their requirements in a property
• Locating and inspecting appropriate properties for purchase.
• Providing advice on conditions of sale
• Conducting auctions, open houses or property inspections
