NZQA registered unit standard
23135 version 3
Page 1 of 5
Title
Demonstrate knowledge of the law of contract and the law of agency
in a real estate context
Level
4
Purpose
Credits
5
This unit standard is for people preparing for entry into, or who
are currently working in, the real estate industry as
salespersons.
People credited with this unit standard are able to:
–
explain the law of contract as it governs real estate sales
contracts;
–
explain the provisions of the law of agency; and
–
determine appropriate signatories for a given contract.
Classification
Real Estate > Real Estate Practice and Law
Available grade
Achieved
Explanatory notes
1
ETITO has common assessment material available to use for organisations with
consent to assess against Real Estate unit standards contained in the National
Certificate in Real Estate (Salesperson) (Level 4) [Ref: 1543]. The use of this
assessment material is encouraged to eliminate the need for pre-assessment
moderation of assessment material. The organisation with consent to assess is
charged for the use of this material.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23135 version 3
Page 2 of 5
2
References
Civil Union Act 2004;
Consumer Guarantees Act 1993;
Contracts (Privity) Act 1982;
Contractual Mistakes Act 1977;
Contractual Remedies Act 1979;
Fair Trading Act 1986;
Frustrated Contracts Act 1944;
Historic Places Act 1993;
Human Rights Act 1993;
Joint Family Homes Act 1964;
Minors’ Contract Act 1969;
Overseas Investment Act 2005;
Overseas Investment Regulations 2005;
Privacy Act 1993;
Property Law Act 2007;
Property (Relationships) Act 1976;
Real Estate Agents Act 2008;
Residential Tenancies Act 1986;
Trustee Act 1956;
Unit Titles Act 2010;
and all subsequent amendments and replacements.
3
Definitions
Contract law means the law that governs the formation and enforceability of
contracts.
Common Law is also known as case law – judgements made by courts, rather than
laws written by parliament. Judgements relating to the duties of an ‘agent’ may be
applicable to this unit standard.
Agreement for Sale and Purchase of Real Estate form is the REINZ and Auckland
District Law Society (ADLS) approved form. A plain English version of this form is
available from REINZ.
Code means the Real Estate Agents Act (Professional Conduct and Client Care)
Rules 2009 which set out the code of professional conduct and client care, available
from http://www.reaa.govt.nz.
REINZ means the Real Estate Institute of New Zealand.
Industry requirements mean all actions must comply with relevant professional body
standards, legislation, codes of professional conduct and client care, and approved
guides. Legislation is available from http://www.legislation.govt.nz and codes of
professional conduct and client care, and approved guides are available from
http://www.reaa.govt.nz.
4
Assessment
This unit standard must be assessed on the basis of evidence of demonstrated
performance in the workplace or in simulated work situations designed to draw upon
similar performance to that required in the workplace.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23135 version 3
Page 3 of 5
Outcomes and evidence requirements
Outcome 1
Explain the law of contract as it governs real estate sales contracts.
Evidence requirements
1.1
The elements of legally binding contracts for the sale and purchase of land and
businesses are explained in terms of contract law.
1.2
Rules of acceptance are explained in terms of contract law.
1.3
The nature and effect of misrepresentation, mistakes, undue influence, and
duress in contracts are explained in terms of contract law.
1.4
Discharge of contracts by performance, agreement, frustration, and breach is
explained in terms of contract law.
Outcome 2
Explain the provisions of the law of agency.
Evidence requirements
2.1
The relationship between principal and agent, and how the relationship may be
created, is explained in terms of the law of agency.
2.2
The duties and responsibilities of principals and agents are explained in terms
of the law.
Range
statutory, contractual, fiduciary.
2.3
The duty of care that agents owe to participants in real estate transactions is
explained in terms of agency law, tortuous relationships, legislation, and
industry requirements.
2.4
The meanings of the terms 'sole/exclusive agency' and 'general agency', and
conditions relating to these types of agencies are explained in accordance with
industry requirements.
Range
2.5
includes but not limited to – joint/sole agency, master agency.
Compliance and non-compliance of agency establishment is determined and
supported by reference to the Code and the Real Estate Agents Act 2008.
Range
introduction, instrumentality, effective cause.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23135 version 3
Page 4 of 5
Outcome 3
Determine appropriate signatories for a given contract.
Range
given contract includes – listing forms, Agreement for Sale and Purchase of
Real Estate forms.
Evidence requirements
3.1
Signatories are determined relevant to the given contract.
Range
by reference to Property (Relationships) Act 1976, Joint Family
Homes Act 1964, Civil Union Act 2004, and Trustee Act 1956.
Replacement information
This unit standard, unit standard 23136, and unit standard
23141 replaced unit standard 4654 and unit standard 4665.
Planned review date
31 December 2015
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
18 December 2006
31 December 2013
Review
2
12 February 2010
31 December 2013
Rollover and
Revision
3
16 August 2012
N/A
Consent and Moderation Requirements (CMR) reference
0003
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23135 version 3
Page 5 of 5
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact the ElectroTechnology Industry Training Organisation at
reviewcomments@etito.co.nz if you wish to suggest changes to the content of this unit
standard.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016