Real Estate Agents Act 2008: Recruitment Questions, Office Quiz, What has gone wrong? and Complaints

Task 1: Recruitment questions John is hoping to recruit two new salespeople for the team. He has added a page to the agency’s website, titled ‘Come and work in real estate’, which describes the work and invites people to submit questions. The branch manager has asked you to draft brief answers to some of these questions. In each case you need to refer to the relevant section (and sub-section if relevant) of the Real Estate Agents Act 2008 that apply.  Here are some of the questions John’s received during the past week regarding licensing issues: 1. I am nearly 18 years old. I know you want someone to start work in June, but I do not turn 18 until October. Would that work? 2. I was convicted of benefit fraud when I was 19. That was 15 years ago, and I have not had any problems since then. Will this disqualify me? 3. I was made bankrupt 3 years ago because a customer of my importing business got into financial difficulties and could not pay me. But I am not a bad person! Will this count against me becoming a salesperson? My bankruptcy was discharged in March last year. Note: Make sure you understand the difference between a Salesperson's licence and an Agent's licence before answering this question. 4. I have just completed my salesperson’s course. I want to be a salesperson because my parents work in real estate. But I do not have any experience yet. Will this disadvantage me in any way? 5. My husband got his licence a couple of years ago and has done a bit of work in real estate but does not enjoy it. Can his licence be transferred into my name? Task 2: Office Quiz John Canon, the branch manager, runs a monthly training session with the sales team. This month he has set a quiz to check the salespeople’s understanding of the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code). John drafted some scenarios based on cases from the Complaints Assessment Committee and situations he heard about from other agencies. He asks you to prepare example answers to give to the team at the end of the training session. Read the following client complaints then state: • the legislation that applies to the situation (name the section(s) and rules that have been breached, or that have been complied with, and • whether each issue is likely to reflect: • misconduct, or • unsatisfactory conduct, or • no further action is required • The sections of the Act and the rules of the Code that are relevant. Complaints: 1. I did not fully understand what the agreement form said because I only started learning English 3 years ago. I told the salesperson that I wanted to discuss it with my sister, who has lived here for a long time and is fluent in English, before signing. He told me he could not wait, and I would miss out unless I signed the agreement form immediately (Name one section of the Act and two rules of the Code that are relevant). 2. The salesperson gave me a bank account number to pay the deposit into. After I had paid, I received a phone call from the office administrator, asking me to pay the deposit. I told her I had done so, and it was only then that we found out that the salesperson had given me his personal bank account details. I have now discovered he’s since left the agency. Fortunately, the agency is not asking me to pay the deposit a second time (Name two sections (with subsections) of the Act and three rules of the Code that are relevant). 3. When we were preparing our offer to purchase the lifestyle block, the salesperson told us not to bother getting a LIM report. He said they were too expensive, and that there would not be any useful information relating to this property. We did get a LIM and found out that the barn doesn’t have a building consent, and much of the land is part of a flood plain (Name one section (with subsections) of the Act and three rules of the Code that are relevant). 4. When we listed our house for sale, the salesperson gave us a booklet from the Real Estate Authority that explained everything. Then she made us read and sign a lengthy agency agreement form, asking us detailed questions about the property. She also told us how we could cancel the agency agreement if necessary. She advised us to check with our lawyer before signing any documents. It all seemed a bit excessive. Doesn’t she trust us to make our own decisions? (Name two sections of the Act and three rules of the Code that are relevant). 5. Saturday morning, after a massive argument with my girlfriend of 2 years, I phoned a local real estate agency and had one of their salespeople list my apartment for sale under a sole agency agreement. I had decided to quit my job and move to Australia. My girlfriend and I made up on Sunday night, and I rang the salesperson early on Monday morning to advise I wanted to cancel the agency agreement. She said I could not do that, because she had already shown a possible buyer through on Sunday (Name two sections of the Act and three rules of the Code that are relevant). Task 3: What has gone wrong? Respond to the following questions by applying the appropriate legislation. (Use up to 150 words for each answer in Task 3.) 1. Stacey, a salesperson at the office, asks you to photocopy 100 flyers that she wants to use for prospecting purposes. You notice that the flyers do not make any reference to the agency name or the fact that it is licensed under the Real Estate Agents Act 2008. The only identifying information is the name and contact details of the salesperson herself. What advice would you give her? Include reference to the appropriate section of the Real Estate Agents Act 2008 in your answer. 2. Jason, a salesperson, transferred from an agency in another city to this office 2 months ago. He’s just realised that he forgot to notify the Real Estate Authority of his change of address. What should he do now? Include reference to the appropriate section of the Real Estate Agents Act 2008 in your answer. 3. Joel, a salesperson, wants to help his sister Mary, a single parent with three children, get her first home. He is recently listed an affordable property that would be very suitable for Mary. The clients are in financial difficulty and want to sell quickly. He is talking about this with you during a coffee break, saying that Mary still uses the name of her children’s father, so nobody need know that they are related. Joel says he wants to avoid having to get a registered valuation for the property, because ‘that’s just another expense we don’t need. Instead of paying for that, I’d rather buy Mary some furniture’. What advice would you give to Joel? Include reference to the appropriate sections of the Real Estate Agents Act 2008 and the Real Estate Agents (Duties of Licensees) Regulations 2009 in your answer. Task 4: Complaints process One Saturday Mr Jenkins, a customer you have met at the office before, comes into the office in a very upset state. He asks to speak with Cameron, one of the salespeople. You explain that Cameron is attending an auction, accompanied by John, the branch manager. Mr Jenkins tells you that Cameron recently sold him a property. Mr Jenkins says Cameron misrepresented the property and he has been seriously financially disadvantaged as a result. Mr Jenkins demands to know what your office is going to do about it. How would you explain the complaints process to Mr Jenkins? Refer to the relevant parts of the Code in your explanation. (Use 150–250 words for your answer.)