Office use only Date received Method of receipt E-mail Post Fax Assignment Box Level 4 Assignment Box Ground Floor Hand Delivered CPPDSM4080A Work in the real estate industry CPPDSM4008A Identify legal and ethical requirements of property sales CPPDSM4007A Identify legal and ethical requirements of property management CPPDSM3019B Communicate with clients as part of agency operations © REINSW CORC Course Assessment v1 October 2016 Page 1 of 88 LEARNER INSTRUCTIONS I have read the Student Handbook found at: http://www.reinsw.com.au/Student-Handbook/default.aspx I will keep my documents safe and secure at all times If I am unclear of any part of this process, I will contact the REINSW Assessment Centre Phone: (02) 9264 2343 Email: [email protected] I will answer all questions using the Study Guide and/or Information as reference tool. Note: the number of lines provided for each response is indicative only and it is not a requirement that you fill all lines Where necessary, I have attached supporting documents which are clearly identified in line with the specific question Where required, I have completed any agreements, forms and contracts required for this assessment. I have done so in FULL and understand that partial completion will not be accepted I have read, dated and signed the Student Declaration at the front of this Assessment I have authenticated this work is mine and signed each page of this assessment I have taken a photocopy of my completed Assessment and any written submissions. Note: REINSW take no responsibility for lost assessments during transit. I will return my completed assessment to: Post : REINSW House, PO BOX A624, Sydney South, 1235 Email: [email protected] Your Results © REINSW CORC Course Assessment v1 October 2016 Page 2 of 88 If your assessment is found to be not competent, you will be provided with clear feedback on what additional information is required via the student assessment record form and/or verbally. To check the progress of your assessment, you are welcome to call (02) 9264 2343. LEARNER DECLARATION I hereby submit these assessment tasks for the unit listed above and certify Yes that all work contained therein has been completed by me Yes that no part thereof has been completed or copied from any other person Yes I have referenced and/or acknowledged all necessary authors Yes I have kept a copy of my assessments Yes I understand REINSW is not responsible for assessments lost in transit Yes I will resubmit at my own cost and time in the event I do not keep a copy of my assessment Yes I understand that REINSW will provide my employer upon request, access to my training records and results (where the employer is funding this learning) Yes I understand that federal and state agencies have the right to access any of my assessment materials for auditing and monitoring purposes Yes I consent that REINSW may use my de-identified assessment for internal moderation and validation purposes Yes I understand that if a third party requests my results that REINSW will only do so with my written permission Yes Student Full Name (print) John Khalil Student ID Contact Number 0432797795 Home Address 36 Diamontina Avenue Kearns Student Signature Date © REINSW CORC Course Assessment v1 October 2016 Page 3 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 4 of 88 Assessment Information Assessment for this unit covers the elements and performance criteria for the unit of competency: CPPDSM4080A Work in the real estate industry CPPDSM4008A Identify legal and ethical requirements of property sales CPPDSM4007A Identify legal and ethical requirements of property management CPPDSM3019B Communicate with clients as part of agency operations These units, form part of the CPP40307 Certificate IV in Property Services (Real Estate) under the Australian Qualification Framework and; Licensing under NSW Fair Trading. Assessment structure Part A – Short Answer Questions Part B – Extended Response Questions PART C – Workplace Situation Activities Performance Criteria and Elements Every assessment for a Unit of Competency within the Australian Quality Framework (AQF) is structured around Performance Criteria and Elements. To access the performance criteria and elements go to www.training.gov.au and search for unit code: © REINSW CORC Course Assessment v1 October 2016 Page 5 of 88 PART A – SHORT ANSWER QUESTIONS For questions in Part A, you will need to provide answers that directly address the question. You may answer in point form. Ensure that you answer all parts of the question. Question 1 Research and explain the roles and responsibilities of the following agencies Australian Competition & Consumer Commission Real Estate Institute of NSW NSW Fair Trading Australian Securities and Investments Commission Tenants NSW Australian Competition & Consumer Commission - The roles and responsibilities of the Australian Competition & Consumer Commission is to protect, and build up the way competition works in Australian markets to improve the way our economy work and to increase the good fortune of us Australians Real Estate Institute of NSW - The roles and responsibilities of the REINSW is to plan unite and carry out different types of campaigns that are to do with the business plan making sure everything is delivered accurately and on time to these campaigns. They assist in the improvement of different strategies for marketing products and services. They create, edit and prepare and issue content for marketing missions. NSW Fair Trading - Fair Trading protects the right of all consumers and guides business and trader on fair and ethical practice Australian Securities and Investments Commission - The Australian Securities and Investments Commission role is to enforce and control company and financial service laws to protect us Australian consumers, investors and creditors Tenants NSW - Tenants must follow all instructions given to them by the real estate agents and owners of that home, (come back to it) Question 2 In property management there are a number of different types of tenancies other than residential. Give an overview of another type of tenancy and explain the tenancy agreement that would be signed. Boarding house tenancies: This type of tenancy shares a lot of the same agreements as under the Residential tenancies act. Some things that are different would include the landlord being able to make house rules. A boarding house tenancy is intended to last 28 days or more. The © REINSW CORC Course Assessment v1 October 2016 Page 6 of 88 other difference between a boarding house tenancy and a standard tenancy agreement is thast you are unable to have a fixed term tenancy in a boarding house. Question 3 Research the specific legislation that applies to the following types of tenancies: ● Residential Tenancy ● Retail Tenancy Give an overview of the main legislative requirements of each; eg: disclosure to tenants, rent increase, term of agreement. Residential Tenancy Disclosure - The landlord ensures that the tenant is given a copy of the tenancy agreement, any changes that are made to the rent are brought forward to the tenant Rent Increase - If rent is to be increased the landlord and the tenant agree that the rent is payable from the day stated in the notice, the landlord may cancel or drop the price of the rent increase by a later notice that takes effect on the same day as the original notice, rent increased under this agreement is not payable unless the rent is increased granting with this agreement and the Residential Tendencies Act 2010 or by the Civil and Administrative Tribunal. Term of Agreement - The terms that the tenants abides and obeys that are given to them by the landlord. Retail Tenancy Disclosure - the retail disclosure to tenants includes: The term of lease, whether there are options for further terms, the cost of occupancy for leasing the premises, specific information for shopping centre leases, tenants fit-out requirements and if there are any relocation or demolition clauses. Rent increase- If rent is to be increased the agent must give 60 days written notice of a rent increase, in this notice they must specify: the increased rent the day from which the increased rent applies Even if details of the rent increase are set out in your tenancy agreement, you must still get 60 days written notice before the rent can be increased. Term of agreement: This outlines all rules that tenants must follow and obey. © REINSW CORC Course Assessment v1 October 2016 Page 7 of 88 Question 4 1. What are the responsibilities of a property manager to the landlord in relation to maintaining the condition of the property? 2. What are the responsibilities of the property manager to the tenant, whilst the tenant is occupying the property? They offer full service to the Landlords including tenant selection, administration of agreement, asset management, accounts administration and actioning request for repairs and maintenance. The landlord agrees to make sure the property is fit to live in and to ensure all parts of the house are in working order. Not to interfere with the gas supply, electricity, water, telecommunications and other services available to the place of stay. Question 5 Your Landlord contacts you to ask for the phone number of his tenant, as he is going to install new carpet in the lounge room and needs access for the tradesman to give a quote. He is very insistent that he must get access asap. 1. What will you do? 2. What legislative requirements will affect your decision? Contact the tenants first to see if it is okay to give their number to the landlord In the residential tenancy agreement alterations and additions to the premises Question 6 Choose one of the Divisions in Part 3: “Rights and obligations of landlords and tenants” from the Residential Tenancies Act 2010 and summarise what the Division refers to. Ensure that you include the responsibilities of both the tenant and landlord. © REINSW CORC Course Assessment v1 October 2016 Page 8 of 88 Question 7 1. Explain the process and timeframes for terminating a tenant’s agreement under the following circumstances: ● Non payment of rent A termination notice may be given by the landlord if the rent has not been paid for 14 days(allow not less than 14 days notice) ● End of the fixed term The termination notice must be given prior to the expiry of the term and the termination notice should not have a specific date for vacant possession earlier than the day on which the term of the agreement ends or not less than 30 days 2. Explain the tenant’s responsibilities when they need to terminate their lease during the fixed term of the agreement. (if the break lease clause is included) They must repay the landlord for costs, fees and other charges and expenses that are associated with such termination Pay rent or compensation for an amount equivalent to rent until such time as the landlord finds a suitable replacement tenant or until the date on which the fixed term of the agreement has expired Question 8 When must receipts for rent be issued? What specific information must be present on a rent receipt? If rent is paid in person a receipt must be issued on the receipt it has: the landlord, owner or agent’s signature the tenant or resident’s name the property address the payment date what period the payment was for how much was paid © REINSW CORC Course Assessment v1 October 2016 Page 9 of 88 Question 9 1. At the end of the month the agency will disburse funds to their landlords. What specific income and expenditure would be noted on that statement? 2. Explain the process you would undertake on a day to day basis to ensure all of the information is correct on the end of month statement. Question 10 1. What are the two (2) documents that are needed before an agent can promote a property for sale? 2. What is the Section and name of the legislation that outlines this requirement? 1. the title documents and the zoning certificate 2. The contract of sale Question 11 1. Explain the key differences between Joint Tenants and Tenants in Common 2. Explain the key differences between Torrens Title and Strata Title property 1.Tenancies in common can be obtained at different times; so an individual may obtain an interest in the property years after one or more other individuals have entered into a tenancy in common ownership. Joint tenants must obtain equal shares of the property with the same deed, at the same time. A Torrens Title property is one in which the purchaser owns both the house and the land on which it is built Properties such as Villas, townhouses, or units are purchased under a strata Question 12 1. Explain what information is contained in a Certificate of Title. 2. Explain how encumbrances affect the title? 3. Give an example of one type of encumbrance and what effect it would have. A certificate of title includes: © REINSW CORC Course Assessment v1 October 2016 Page 10 of 88 -current ownership details -volume and folio -survey plan number and type -encumbrances and notifications -whether there is a caveat against the title © REINSW CORC Course Assessment v1 October 2016 Page 11 of 88 Question 13 A purchaser and a vendor have exchanged contracts with a 5 day cooling off period, answer the following questions: 1. What is the deposit amount required on exchange of contracts? 2. Where is this money deposited and within what timeframe? 3. At what point are we allowed to disburse the deposit held in the trust account to the vendor of the property? 4. What document is required prior to disbursement of deposit? The amount should be around one to two percent of the purchase price The money is deposited into a trust bank account Upon settlement the vendor is allowed to access this account A written letter from the solicitor Question 14 1. What are the essential elements, as prescribed in legislation, of a valid agency agreement? (Refer to Property Stock and Business Agents Regulations 2014 Schedule 7) Identification of property, business or professional practice, names of parties to agreement, information identifying parties, authority of the person on behalf of whom the agent will act to enter into agreement, authorisation for licensee to act on behalf of person, period of duration of the agreement, termination of the agreement, reimbursement of licensee, and remuneration. 2. How would ensure that you do not lose your entitlement to commission and/or expenses? Ensure you have received clear payments from clients Question 15 Explain the features, including advantages and disadvantages of opening an agency, under the following types of ownership: ● Sole Trader ● Partnership ● Corporation (Company) Sole Traders Advantages: © REINSW CORC Course Assessment v1 October 2016 Page 12 of 88 Sole Traders have full control over their business without having anybody interfere, all income after tax is theirs, start up costs are low, starting up and operation of the business is simple. Disadvantages - you are liable for debts as there is no legal distinction between private and business assests, you are completely responsible for day to day descion making, you’re taxed as a single person, and the life of the business is limited. Partnership advantages-easy to start up business and the cost is low, you’ll have a greater borrowing capacity, there is an oppurtunity for income splitting, its easy to change your legal structure later if circumstances change later Disadvantages - there is a risk of disagreements between the partners and management,each partner is an agent of the partnership and is liable for actions by other partners Corporation advantages- it becomes easy to transfer ownership by selling shares to another party, shareholders can be employed by the company, taxation rates can be more favourable Disadvantages- the company can be expensive to establish and maintain, financial affairs are public, profits shared to shareholders are taxable © REINSW CORC Course Assessment v1 October 2016 Page 13 of 88 Question 16 1. If you were looking for information about the supervision requirements of the licensee in charge of the agency, (as required under the Property Stock and Business Agents Act), what would you do? Look through the page of contents and see what schedule it is under 2. Explain the steps you would take to access this information. 3. Which Section of the Act relates to supervision requirements? Question 17 An agency must operate a trust account for all money received on behalf of their clients. It must be maintained in accordance with the Act and Regulations. 1. Refer to the PSBA Regulations Part 4 Trust Money and explain the main provisions for receiving money into the trust account. The licensee who opens the trust account must provide the authorised bank with a identifying number obtained from the department 2. How money can be paid out of the trust account. The licensee must enter into the records the particulars required by clause 24 to be recorded for a cheque or required by clause 24 (5) to be recorded for an electronic funds transfer 3. What trust money records must be kept by the licensee. the date of the transfer the amount transferred to and from each ledger account the names of all ledger accounts to be debited or credited the relevant reference number or other identification sufficient particulars to identify the transfer and the reason for the transfer © REINSW CORC Course Assessment v1 October 2016 Page 14 of 88 Question 18 When showing a property for sale or lease, what would you do to ensure the security of the property and the safety of persons who attend the inspection? The agent must accompany those that are inspecting the property, and an agent must not give keys to the property to anybody © REINSW CORC Course Assessment v1 October 2016 Page 15 of 88 Question 19 You have been given the task of updating and archiving records for active and inactive property management files. Explain how you would go about the following, including the legislation that would apply: ● Changing/updating current records ● Archiving records where required ● Providing access to records to appropriate personnel ● Ensuring safety and security of records whilst you are completing this task ● Disposing of client information Question 20 1. If the purchaser paid a 10% deposit on exchange of a contract of sale and decides to withdraw during the cooling off period what penalties would they incur? 2. If a property was bought at auction what is the cooling off period? There is no cooling off period 3. If a purchaser wishes to waive their cooling off rights, what document would they need to sign and who can prepare the document? © REINSW CORC Course Assessment v1 October 2016 Page 16 of 88 Question 21 You have just achieved your Certificate of Registration and you have been offered a casual position as a Property Management Associate. They want you to come for 2 hours a day to cover the lunch period and will pay you $20 per hour. As this is just a casual position the employer tells you there is no need to have an employment agreement. 1. Explain why this offer of employment does not comply with the Real Estate Industry Award 2010 0. What are your minimum rights? Harry has been a licensed agent for 6 years and every year undertakes his CPD before renewing his license. This year he hasn’t had time to do his CPD and forgot to renew his licence. He has been operating for 3 months without a licence. 1. What are the breaches that have occurred and what are the disciplinary actions that NSW Fair Trading could impose on him? Question 22 1. Why is it important to give your client space and time to evaluate agency services? Give an example. 2. How could you use this time to your advantage? 3. Why would it be beneficial to schedule an appointment with client to discuss agency services? 4. Why is it important to take notes when communicating with clients? © REINSW CORC Course Assessment v1 October 2016 Page 17 of 88 Question 23 Refer to the excerpts following 1. Compare the Certificate of Title to the Contract for Sale of Land and note any problems or mistakes. 2. Who would be able to correct mistakes? 3. Compare the Certificate of Title to the agency agreement and note any problems or errors. Explain how these errors would affect the validity of the agreement. © REINSW CORC Course Assessment v1 October 2016 Page 18 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 19 of 88 Question 24 Access the condition report from the resources and use your home to complete. You must include: 2 Bedrooms (if possible) Kitchen Bathroom Hallway / Entrance Outdoors Ensure that you give detailed descriptions of features such as blinds, carpets etc and well as any damage or problems. Question 25 1. Create a Letter that will be sent to all Landlords who have a swimming pool at their property that advises them of the requirements of swimming pool compliance. 2. Access the Landlord database (Located in the Excellence Property Database) and create a list of Landlords who will receive the information. © REINSW CORC Course Assessment v1 October 2016 Page 20 of 88 PART B – Extended Answer Questions For questions in Part B, you will need to provide answers that are in depth, referenced and supported by additional documentation. Responses to questions need to be approximately 150 words (minimum), if you consult websites or publications to construct your answer, you MUST reference your source. It is expected that you would provide your evidence in a word document, professionally formatted, with attention to grammar, spelling and punctuation. Read each question or scenario carefully and ensure that you answer all of the facets of the question. Questio n 1 One of your landlords is going to do some significant work on his property, which will require a number of tradespeople to be at the property. He demands that you give him the tenants details so that he can call them to organise. You are not aware of the proposed works and have no idea of how it will affect the tenant. 1. What action will you take? 2. What are the tenants’ rights in this situation? 3. What legal and ethical responsibility does your agency have, as the landlord representative, in this situation? In your answer cite sections of the Residential Tenancies Act and Regulation 2010 to support your answer Type Answer Here Questio n 2 As a property manager you would be expected to assist with the growth of the property management portfolio. 1. Explain how you could increase your property management portfolio and what would you do to attract new landlords to your agency. 2. Once you have been approached by a prospective new landlord explain in detail the process you would undertake to secure the management. 3. How would you get a good understanding of the landlord’s requirements? How would you explain to them, their responsibilities as a landlord? Type Answer Here © REINSW CORC Course Assessment v1 October 2016 Page 21 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 22 of 88 Questio n 3 Manjek Singh has recently signed a Management Agency Agreement with Excellence Property, this is her first property investment and she is keen to ensure that she understands the process of marketing the property and finding suitable tenants. To help her understand the legislative requirements of selecting a tenant you are going to prepare a fact sheet for her. In the fact sheet you will cover: ● How you will market the property ● The process of showing the property ● Tenancy application and how you would select a suitable tenant ● What questions you would ask when you are completing reference checks ● The initial payments required from the tenant before signing the agreement ● The importance of the tenancy agreement and condition report Type Answer Here Questio n 4 James and Grace Smith are ready to sell their property with your agency, whilst you have briefly discussed the documents needed in your office prior to marketing his property, James is still relatively unaware of the sales process. You now need to prepare for a listing presentation with James and Grace. ● When and how would you present this information to the client? Explain how you would maintain your professional image. ● What documents would you access and take with you to the listing presentation? ● What sales and marketing options are available to James and Grace? ● Outline the fees and charges that they will need to pay before and after the sale. ● Once they have signed a sales agency agreement with you, what documentation do you need prior to marketing? ● How will you deal with offers from prospective purchasers? Type Answer Here © REINSW CORC Course Assessment v1 October 2016 Page 23 of 88 Questio n 5 Part 1 You have been employed as a Property Sales Associate and have been given your employment contract to read and subsequently sign. As you are reading it you find that you do not understand a number of items in the agreement. You realise that you will need to discuss it with someone. To assure that you cover everything at the meeting, you will research the following items prior to your discussion. The items focus on: ● Allowances ● Wages You understand that your wages will be different in the first 6 months of your employment. You are unsure of what allowance you will be entitled to, if you use your own car which is 3 years old and has an engine capacity of 2.6 litres. You also need some clarification about the professional standards required by the agency, so you will consult the Employee Handbook for information to discuss with your licensee. 1. Refer to the Real Estate Industry Award 2010 and document your entitlements 2. Prepare a plan of what you will discuss with your employer including professional standards 3. Who would you consult if your employer does not pay you your entitlements or provide suitable working conditions? Part 2 1. Research courses that may be suitable for you to attend to develop your skills and knowledge and meet your CPD requirements. 2. Explain why you chose them. Include websites accessed. Type Answer Here © REINSW CORC Course Assessment v1 October 2016 Page 24 of 88 Questio n 6 NSW Fair Trading has the responsibility to ensure that consumers are protected in commercial transactions. 1. Explain (in your own words) how NSW Fair Trading regulates the property industry, and ensures real estate compliance. This could include licensing, rules of conduct and more. 2. As an agent how would you ensure that clients consumers rights and privacy are protected? Explain how you would achieve this; in your answer cite particular legislation that you would consult. 3. What are the penalties for breach of your fiduciary and ethical responsibilities? 4. What impact could such a breach have on your agency/self? 5. Explain how you would minimise the risk of breaching a client’s rights to privacy Type Answer Here Questio n 7 “The relationship between principal and agent places an agent in a position of trust, confidence and responsibility in which their foremost duty is to act in the best interests of their client and deal ethically with all parties involved in property transactions.” Go to NSW Fair Trading website (in the search box type duty of disclosure) and review the section Duty of Disclosure. 1. Explain the requirements of Section 49 ‘Restrictions on obtaining a beneficial interest in property’, how it affects you as an agent and what you would need to do if you or a member of your family wished to purchase property from your agency. 2. Choose another disclosure requirement. Give a detailed explanation of its requirements, an example of how a breach could occur and include penalties for breaches and any documentation requirements or approved forms. Type Answer Here Questio n 8 As an agent, your clients expect you to be experts in all manner of property matters including building construction and faults, swimming pools, asbestos, window and blinds safety, health and safety …. the list goes on. As we are not experts in any of these fields we would need to consult specialist advice when asked questions on such matters. 1. Explain how you would go about finding the appropriate specialist and outline what documentation you should keep to show the results of your investigations. 2. Legislation also prescribes actions that agents must take in regards to swimming pools and pre-sale building inspections reports. Explain the requirements of both. © REINSW CORC Course Assessment v1 October 2016 Page 25 of 88 Type Answer Here © REINSW CORC Course Assessment v1 October 2016 Page 26 of 88 Questio n 9 You have successfully negotiated a deal and agreed on terms for the sale of a property. You now need to explain the exchange and settlement process to both the purchaser and the vendor. 1. Provide an outline of what happens from the purchaser’s perspective, including exchange of contracts, deposit amounts, cooling off periods and pre settlement inspections. 2. Provide an outline of what happens from the vendor’s perspective, including exchange of contracts, deposit and banking of deposit, cooling off periods and pre settlement inspections, order on the agent, disbursements. Type Answer Here © REINSW CORC Course Assessment v1 October 2016 Page 27 of 88 Questio n 10 Part A Sione, a sales representative, is in the process of negotiating a sale, and finding it difficult to get both parties to come to an agreement. Sione knows the purchaser really wants the property and that the Vendor needs to sell quickly, but the negotiation has come to a stop with only $10,000 difference in price. Neither party wants to budge, but both want the same outcome. 1. Explain the negotiation techniques that Sione would use to enable the parties to come to an agreement. 2. How could Sione persuade the purchaser to make a better offer? Part B Lee Kang, a tenant, enters your office and yells at the receptionist that they need to speak with the Property Manager. “I have been waiting for 6 weeks to get it fixed”. Unfortunately, the Property Manager is not available and when the receptionist tells the tenant, he continues yelling “I am not going until I see someone about it!” The receptionist asks you to help. Lee makes a call on his mobile phone and starts speaking very loudly in a foreign language. There are a number of people waiting in the reception area and they appear very uncomfortable. 1. Discuss how you would approach Lee in this situation, what conflict resolution techniques would you use, how could you diffuse the situation. After speaking with Lee, you find that he has requested repairs to the front porch light for over 6 weeks ago and last night his wife tripped up the stairs and seriously injured her leg. You are finding it difficult to understand him as his English is not good. 2. What communication techniques would you use to enable both Lee and yourself to discuss the situation and come to a satisfactory resolution? Type Answer Here © REINSW CORC Course Assessment v1 October 2016 Page 28 of 88 Questio n 11 Complete the end of month statement using the following information. (Complete the Tax Invoice below) Landlord: Nicita Robinson Landlords Address: 23 York Rd Jamisontown 2754 Property: 56 River St Padstow Rent: $590 per week Letting fee: 110% of 1 weeks rent Management fee: $7.7% Administration fee: $11 per month Rent collected: 4 weeks Strata fees: $370 You have also taken a 4 week bond from the tenant. What do you need to do with this bond and when should you do it? Excellence Property 30-32 Wentworth Ave Sydeny NSW 2000 ABN:31 007 167 278 TAX INVOICE Landlord: Address: Your Rental Property Rent Collected weeks @ $ Total Income: $ Our fees and charges Item Amount $ $ $ Total fees $ Other Payments $ Total Deductions $ Your Payment $ If you wish to discuss any aspect of this statement, please call our accounts department on 8267 7895 or email [email protected] © REINSW CORC Course Assessment v1 October 2016 Page 29 of 88 Questio n 12 Your tenants, Jacob and Naomi, have asked to terminate their tenancy agreement. Originally they took out a 12 month tenancy agreement and have been living in the property for 7 months. Jacob has been transferred to a new position in Victoria and must start in 3 weeks time. 1. What are the options for Jacob and Naomi? 2. Explain the steps you would take to finalise the end of tenancy and the outgoing inspection 3. What would you do if the property was damaged or left in a dirty condition and the tenants do not think they are at fault? How would you resolve this dispute? Type Answer Here © REINSW CORC Course Assessment v1 October 2016 Page 30 of 88 PART C – Workplace Situation Activities For Part C of the assessment you are required to read the scenario and complete the required documents. There are templates for all practical activities. You may be required to refer to Excellence Property Policies and Procedures that are included in the resource section. © REINSW CORC Course Assessment v1 October 2016 Page 31 of 88 Workplace Situation Activity 1 Front Desk You have been working at Excellence Property for two weeks. As most of the property management and sales staff are away from the office doing training, you have been asked to look after reception today There are a number of documents, checklists and flowcharts available to help you handle any issues or problems that you may encounter, to be found in Employee Handbook: ● Agency profile ● Organisational chart ● Document Management Policy ● Client Services Policy ● Key Handling Policy ● Handling Money Policy You have a list of tasks to do during the day that includes organising a meeting for Property Management on Thursday, booking opens for the sales and property management teams. See Weekly calendar with list In the first fifteen minutes of your day you receive a phone call from a prospective vendor, wanting to get information about selling his property. You take all his details in the enquiry log. James Smith has a 3 bedroom house with ensuite in Market Street. James and his wife Grace have been living in this house for 15 years and they are wanting to down size. They’re not in a hurry, but would like to know how much their property is worth in today’s market. See Enquiry Log Once you have all his details you advise him that as all the sales staff are at training you will get a sales representative to ring as soon as they get back to the office. You consult the Organisational chart (in Employee handbook) for the appropriate person. You need to write a file note including details of the caller, who you passed the enquiry on to and details of the enquiry. See Organisational Chart and write file note To ensure that you are giving James top service, you spend a few minutes giving him an overview of the sales process and the documents he needs before the agency can sell his property. You make a note of this conversation, which you email to the sales agent, so that they can prepare for an interview. Write email Thomas has asked you to prepare a document that explains the different options for selling property, what the advantages and disadvantages are and how the method of sale will affect the way the property is marketed. This document will be added to the current listing kit. Thomas has given you a template to use. Complete Sales and Marketing template. © REINSW CORC Course Assessment v1 October 2016 Page 32 of 88 Later in the day a tenant, Alan Young, comes in with a cheque to pay his rent, as you do not have access to the Property Management Database, you will need to complete a manual receipt. Details are: Property 40 George St Redfern Rent $520 per week Paid From: Todays date Amount Paid:Two weeks rent Complete Receipt Document Completed Weekly Calendar Enquiry Log File Note Sales and Marketing Template Email 1 – to sales agent Receipt © REINSW CORC Course Assessment v1 October 2016 Page 33 of 88 Appointments for Week (include all appointments in the one calendar Sales Department Open for Inspection Jane 45 Town Road – Wed 5-6 16 George St – Sat 11-12 Max 1/15 Torrens St – Sat 11.30-12 3/15 Torrens St 12 – 12.30 67 King St Sat 2-3 Stephan 90 Young St – Sat 1-2 Market Appraisal Thomas – Tuesday 4.30 Property Management Open for Inspection Sat 51 Red Cres – 10.30 – 10.45 40 Upper Road 11-11.20 Routine Inspections Angela Tuesday 12-4 Thursday 9-11 © REINSW CORC Course Assessment v1 October 2016 Page 34 of 88 Week Commencing _________________ Name _______________________________ Time Mon ______ Tue ______ Wed ______ Thurs ______ Fri ______ Sat ______ 8.00 8.30 9.00 9.30 10.00 10.30 11.00 11.30 12.00 12.30 1.00 1.30 2.00 2.30 3.00 3.30 4.00 4.30 5.00 5.30 6.00 © REINSW CORC Course Assessment v1 October 2016 Page 35 of 88 Enquiry Log Date Time Caller Enquiry © REINSW CORC Course Assessment v1 October 2016 Page 36 of 88 Organisational Chart © REINSW CORC Course Assessment v1 October 2016 Page 37 of 88 File Note Client Property Date - Time Particulars Action © REINSW CORC Course Assessment v1 October 2016 Page 38 of 88 Email Template To: CC: Subject: © REINSW CORC Course Assessment v1 October 2016 Page 39 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 40 of 88 Sales and Marketing Template Method of Sale Advantages Disadvantages Marketing Options Private Treaty Auction Tender © REINSW CORC Course Assessment v1 October 2016 Page 41 of 88 Receipt Excellence Property Trust Account 30 -32 Wentworth Ave Sydney Receipt no 223 Date: Received from The sum of Being for Property details Period $ Per Cheque Cash © REINSW CORC Course Assessment v1 October 2016 Page 42 of 88 Workplace Situation Activity 2 Spiros Papalous (a property developer), has a partly completed development site. Stage 1, an apartment complex, has been completed. The majority of these apartments have been sold. The developer owns 2 of these apartments and also has another apartment available for sale. Stage 2 of the development, on the rear of the site, will be townhouses and building will commence shortly. This area is fenced off from the existing apartment complex. The property for sale has been inspected by the Property Sales Supervisor, Thomas, and he has developed a Comparative Market Analysis (CMA). Using this information, (refer to the Listing Information), you are required to write a letter to the Vendor explaining your suggested method of sale and price range. In the letter you outline the prescribed documents you will need prior to marketing the property. Write Letter After discussions with Spiros and his partner, Yolande Minnette, you have decided that the best method of sale is Private Treaty, with a marketing budget of $3,500 (refer to the Listing Information). Using this information, you will need to prepare an Exclusive Sales Agency Agreement. The agreement will go for 3 months from today’s date with a selling fee of 2.2% GST inclusive. Prepare an Exclusive Sales Agency Agreement using the template from the E-Learning resources. Spiros doesn’t want you to mention the proposed second stage of the development and does not want any photographs of the building site to appear in the marketing. You will need to write to him and explain the requirements of the section 52 of the Property Stock and Business Agents Act that refers to misrepresentation by licensee or registered person. Write letter To enable the marketing team to prepare the advertising campaign, you complete the Marketing Summary and list the features and benefits of the property and a draft advertisement. Once you have developed the documents, you email the Vendors for approval. Write email Document Completed Letter 1 re method of sale and marketing Exclusive Sales Agency Agreement Letter 2 re misrepresentation Marketing Summary Email – re approval of marketing © REINSW CORC Course Assessment v1 October 2016 Page 43 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 44 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 45 of 88 Details Vendors Spiros Papolous Yolande Minnette Address 27 Royal Parade Randwick NSW 2222 Contact Work: 02 8965 7895 Mobile: 4052 963 874 (Spiros) Email: [email protected] Vendors Asking Price $890,000 CMA Price $790,000 – $879,000 Property Address Unit 2/15 Apartment Drive Redfern Listing Information Commission 2.2% (GST inclusive) of eventual sale price Method of sale Private Treaty Solicitors Details Solicitor Swift Conveyancing Address 12/44 Market St Sydney Contact Bella Rhoumi 02 9987 6633 [email protected] Marketing and Promotion Marketing Gold Package – including SMH advertisement $850 Solar signboard A4 brochure Total Cost $3,500 (SMH Discount 5%) © REINSW CORC Course Assessment v1 October 2016 Page 46 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 47 of 88 Property Details Features Benefits Other Information Draft Advertisement Header Body Inspection Times Contact © REINSW CORC Course Assessment v1 October 2016 Page 48 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 49 of 88 Email Template To: CC: Subject: © REINSW CORC Course Assessment v1 October 2016 Page 50 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 51 of 88 Workplace Situation Activity 3 Now that the agency agreement has been signed, you can start your marketing campaign. You have a database of prospective buyers that you can contact who may be interested in the apartment. When reviewing the database you find a potential buyer for one of the properties for sale. You will email them and see if they are still interested. Write email Your sister is also interested in looking at one of the units and is keen to make an offer. You will need to make the appropriate disclosure to the Vendors. Complete S49 disclosure form Margaret and Casey Todd want to give you $1,000 as an expression of interest deposit when they submit their offer (the offer is $20 000 below the listed price). They want to take the property off the market whilst they organise their finances. You will need to explain to them what happens if you accept their deposit and that you would suggest that they obtain specialist advice in relation to pest and building inspections. Write email You give the offer to Spiros over the phone and follow up in writing. Spiros and Yolande have instructed you to negotiate a price no more than $10,000 below the asking price. After a number of phone calls with counter offers you finally get agreement between buyer and seller refer to the email (Confirmation of Acceptance below). To confirm the offer and acceptance you complete a sales advice. Complete Sales Advice Document Completed Email 1 – to database buyers Section 49 Disclosure Form Email – re acceptance of offer Sales advice © REINSW CORC Course Assessment v1 October 2016 Page 52 of 88 Email Template To: CC: Subject: © REINSW CORC Course Assessment v1 October 2016 Page 53 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 54 of 88 To Your sale of: ------------------------------------------------------------------------------ Signature of real estate agent(s)/salesperson(s) Proposing to obtain beneficial interest) [Print name of the real estate agent(s)/salesperson(s)] DATED: © REINSW CORC Course Assessment v1 October 2016 Page 55 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 56 of 88 TO: [insert name(s) of real estate agent(s)/salesperson(s) seeking consent] (Signature of each client) [Print name of each client] DATED: © REINSW CORC Course Assessment v1 October 2016 Page 57 of 88 Email template To: CC: Subject: © REINSW CORC Course Assessment v1 October 2016 Page 58 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 59 of 88 Confirmation of Acceptance of Offer To: [email protected] Subject: Sale: Unit 2/15 Apartment Drive Redfern Excellent news, Yoland and I are very happy to accept the offer of $880,000. Please organise exchange of contract asap. Cheers Spiros To: [email protected] CC: Subject: Sale: Unit 2/15 Apartment Drive Redfern Dear Sprios and Yolande It is with great please that after much negotiation Margaret Todd and Casey Todd have made an offer for your property that meets your instructions. The offer is $880,000. I await your instructions. Kind regards © REINSW CORC Course Assessment v1 October 2016 Page 60 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 61 of 88 Sales Advice Address of Property for Sale Postcode Vendor Price $ Deposit 10% of purchase price Date for completion 42 days after the contact date Inclusions Exclusions Special Conditions Vendors Solicitor Firm Name of Solicitor Document Service Address Phone Mobile Fax Email Vendors Agent Name Phone Mobile Fax Email Purchaser Name Address Postcode Phone Email Purchaser Solicitor Firm Name of Solicitor © REINSW CORC Course Assessment v1 October 2016 Page 62 of 88 Address Document Service Phone Email © REINSW CORC Course Assessment v1 October 2016 Page 63 of 88 Workplace Situation Activity 4 As Spiros Papolous wants you to manage Unit 1/15 Apartment Drive, Redfern, you will need to complete a managing agency agreement with him. You have negotiated a commission rate of 6.6% and a monthly administration fee of $8.80. You will charge 1 weeks rent +GST as a letting fee. Spiros would prefer that the initial lease be for 12 months. Your rental appraisal suggests the rent be between $660 - $700 per week, however Spiros has previously indicated that he would like to get $750 per week. You will need to use all your persuasion skills to help him understand that this amount is not attainable in the current market and that he should agree to an amount within your range. In a letter explain the comparable analysis process for your rental decision. Write Letter You have reached agreement on the rental amount of $680 per week and finalise the Management Agreement for signatures. Exclusive Management Agency Agreement from the Resource section The process of showing the property and reviewing tenants’ applications has begun. After an open for inspection you have received a number of applications and after doing the appropriate checks you now have 4 suitable tenants, complete the Tenant Application Review template for the two tenants you would like to nominate to the Landlord for approval. Tenant Application Review. Spiros has asked you to send him a summary of your selected tenants with an explanation of why you believe they will be good tenants. Write email Spiros has indicated that he and Yolande would be happy with any of your prosed tenants and instructs you to enter into a tenancy agreement with your preferred applicant. You contact the successful applicant and email them with the details of what monies they will need bring with them when they sign the agreement. You also ask them for a holding deposit to be paid immediately and explain what will happen if they don’t sign the agreement. Write email Your new tenant has come in to sign the tenancy agreement and pay their bond. Complete Residential Tenancy Agreement and Bond Lodgement Form from the Resources Prepare the end of month statement for Spiros Complete End of Month Statement © REINSW CORC Course Assessment v1 October 2016 Page 64 of 88 Document Completed Letter – re management of property Managing Agency Agreement Tenant Application Review short list Email to Landlord – re tenant selection Email to Tenant – re signing lease Residential Tenancy Agreement Bond Lodgement Form End of Month statement © REINSW CORC Course Assessment v1 October 2016 Page 65 of 88 Tenants Name Reference Checked by Employment confirmed – List company and person contacted Length of employment Present Landlord/Agent details and person contacted Comments Tenants Name Reference Checked by Employment confirmed – List company and person contacted Length of employment Present Landlord/Agent details and person contacted Comments © REINSW CORC Course Assessment v1 October 2016 Page 66 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 67 of 88 Email Template To: CC: Subject: © REINSW CORC Course Assessment v1 October 2016 Page 68 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 69 of 88 Email Template To: CC: Subject: © REINSW CORC Course Assessment v1 October 2016 Page 70 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 71 of 88 Tax Invoice ABN: 31 007 167 278 Month Landlord Address Your Rental Property Rent Collected weeks @$ Total Income $ Our fees and charges Item $ $ $ $ Total Fees $ Other Payments Total Deductions $ Your Payment We thank you for your patronage. If you wish to discuss any aspect of this statement, please call our accounts department on 8267 7895 or email [email protected]. NB: Your payment has been deposited into your nominate bank account. Yours sincerely © REINSW CORC Course Assessment v1 October 2016 Page 72 of 88 Property Manager © REINSW CORC Course Assessment v1 October 2016 Page 73 of 88 Workplace Situation Activity 5 Robert Redman, Penny Yung and Enrico Lomas have been renting an older style 3 bedroom house with Excellence Property for nearly 15 months. At the beginning of their tenancy they were model tenants, their rent paid in advance and the property was well maintained. Over the last month, their rent payments have been up to 5 days late, they haven’t been paying the full amount and as such are now $400 in arrears. You have contacted them and found that Robert is currently out of work and has not been able to pay his part of the rent. Robert is starting a new job next week and will start paying his share of the rent then. You have discussed the issue with your Landlord (Krista Miles) and have come to an agreement with the tenants, that they can make up the back rent by paying an extra $20 per week until the arrears have been paid. You confirm this arrangement with the tenants by email. Write email You decide at this point that it would be a good time to do a periodical inspection and Krista would like to be present at the inspection. You send a letter to the tenants (ensuring the appropriate notice period is observed), advising them of the details of the inspection and that the Landlord will be in attendance. Write letter for inspection During your inspection you notice that the kitchen window frame has been broken, the lawns are overgrown and there is a large brown stain on the carpet in the hallway. There are a number of palings missing from the side fence and there is evidence that they have had a home-made BBQ in the back yard. Krista is appalled at the state of the property and demands that you evict them immediately. You assure Krista that you will attend to the situation immediately and will contact her with the outcome. Back at the office you prepare the termination notice and a letter that explains the reason for the termination notice. for You serve the notice by hand. Termination Notice from the E-Learning resources and Letter to Tenants Robert and Penny contact you to discuss the necessary repairs and confirm with you that they will pay all costs. They will vacate the property at the end of the month. You agree to send them a letter that explains the process for vacating the property and how they can ensure that their bond is refunded. Letter to tenant You have organised for your handyman Adam Walker to fix the window frame and fence; he will pick up the keys on Friday on his way to the property. Complete key register © REINSW CORC Course Assessment v1 October 2016 Page 74 of 88 Document Completed Email to tenants – re rent payments Letter to tenant - re property inspection Termination Notice Letter to tenants – re termination notice Email to Landlord re tenants leaving property Letter to tenant – re outgoing inspection Key register Email Template To: CC: Subject: © REINSW CORC Course Assessment v1 October 2016 Page 75 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 76 of 88 Email Template To: CC: Subject: © REINSW CORC Course Assessment v1 October 2016 Page 77 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 78 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 79 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 80 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 81 of 88 Property - ID Key Number Issued Date - Time Issued By Name – Signature Issued to Name – Signature YB098 17 Young St Burwood Krista Miles YB098 1 Front Door YB098 2 Garage Door YB098 3 Security Door HS099 65 High St Surry Hills Yuen Dong HS099 1 Back Door HS099 2 Front Door HS099 3 Security Door HS099 4 Garage Door HS099 5 Security Swipe © REINSW CORC Course Assessment v1 October 2016 Page 82 of 88 Workplace Situation Activity 6 Spiros has now begun work on Stage 2 of the development. The townhouses are in the process of being built. This has resulted in trucks and other building machinery entering the property and hindering the access for residents in the apartment building. Some minimal damage has been done to pedestrian areas, which most residents are accepting as part of the building process. However, it has caused some additional access issues for Mohammad, the resident from apartment 3, who is wheelchair bound. Mohammad has notified the agency on 2 separate occasions of the issue, but a resolution has not been reached. Mohammad has put in a formal complaint, which you record in the Complaints register. Complete Complaints Register (see Letter of Complaint) Mohammad has requested that the footpaths be repaired, but Spiros is reluctant to complete this work until the machinery is no longer required on site. There are plans for redevelopment of the communal pathways and gardens surrounding the apartment building as part of Stage 2 of the development. It is estimated that this is likely to take another 12 months. You need to remind Spiros about the rights of the tenant, especially as he is disabled and the potential options that could appease Mohammad. Spiros recognises Mohammad’s needs but also has a priority to complete the building project on time and within budget. He has authorised you to negotiate a temporary solution costing up to $5 000. The developer has suggested that it would be beneficial for the property manager to resolve this issue as quickly as possible to avoid any further negative public exposure. You write to Mohammad explaining the offer to install a temporary ramp and suggest that he takes a little time to evaluate the offer. Write letter re ramp After considering the offer, Mohammad has decided that he is not happy with this solution, as he feels that his safety will still be at risk. He feels that the developer is discriminating against him and is threatening to take the matter further. Write a letter to Spiros re discrimination concerns Document Completed Complaints register Letter to Mohammad re ramp Letter to Spiros re – discrimination concerns © REINSW CORC Course Assessment v1 October 2016 Page 83 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 84 of 88 Letter of Complaint Mouhammad Elami 3/15 Apartment Drive Redfern Susan Watts Property Management Supervisor Excellence Property Re: Damage to pedestrian access on property I am writing about the damage that has taken place to parts of the pedestrian access within the complex. I have previously notified you of this issue on two separate occasions and am yet to hear back on the resolution reached. Due to my mobility issues, the damage to the pedestrian access has caused me some stress as I am finding it difficult to access my own property. This in turn creates a health and safety risk to myself and others within the property. I would appreciate it if you would have appropriate repairs carried out to the communal footpaths or indicate what alternative solutions can be made until all stages of the development has been complete. I am happy in this tenancy and look forward to remaining here on good terms. Could you please respond to this letter within seven days to confirm what action you will be taking? Yours sincerely M l a m i © REINSW CORC Course Assessment v1 October 2016 Page 85 of 88 Date Complaint Reference Made by Contact Details Property/ Person Reason for Complaint Details of Complaint Complaint lodged with Name Date Referred to Manager Actions Taken Resolution or Follow Up Signature (of person completing this document) © REINSW CORC Course Assessment v1 October 2016 Page 86 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 87 of 88 © REINSW CORC Course Assessment v1 October 2016 Page 88 of 88