NZQA registered unit standard
23137 version 3
Page 1 of 7
Title
Demonstrate knowledge of the sale and purchase agreement and
facilitate sale of real estate
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:
–
draft an offer to purchase real estate with a customer,
using an Agreement for Sale and Purchase of Real Estate
form;
–
demonstrate the negotiation process between the
customer and client for the sale of real estate;
–
demonstrate knowledge of financing options for
customers of real estate;
–
explain the requirements for international buyers; and
–
demonstrate knowledge of after-sales service methods in
the real estate industry.
Classification
Real Estate > Real Estate Practice and Law
Available grade
Achieved
Explanatory notes
Version 2 of this unit standard was republished in March 2010 following the removal
of incorrect replacement information.
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
23137 version 3
Page 2 of 7
2
References
Consumer Guarantees Act 1993;
Fair Trading Act 1986;
Human Rights Act 1993;
Overseas Investment Act 2005;
Overseas Investment Regulations 2005;
Privacy Act 1993;
Property Law Act 2007;
Real Estate Agents Act 2008;
Residential Tenancies Act 1986;
Unit Titles Act 2010;
and all subsequent amendments and replacements.
3
Definitions
Approved guides mean the two approved guides developed by the Real Estate
Agents Authority covering an agency agreement and a sale and purchase
agreement. These are available from http://www.reaa.govt.nz.
Client means the person on whose behalf an agent carries out real estate agency
work and is commonly known in the industry as a vendor or seller.
Customer means a person who is a buyer or potential buyer of land or a business
and is commonly known in the industry as purchaser or buyer.
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.
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.
Licensee means an agent, branch manager, or salesperson.
REINZ means the Real Estate Institute of New Zealand Inc. REINZ Codes of Practice
guides are available from REINZ National Office or on http://www.reinz.co.nz.
Agreement for Sale and Purchase of Real Estate form is the REINZ and Auckland
District Law Society (ADLS) approved form. These are available from
http://www.reinz.co.nz or from http://www.adls.org.nz.
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.
LIM means Land Information Memorandum, available from local councils.
Prospective customer means a person who is considering or intending to enter into
an agreement for sale and purchase of a property.
4
Real estate includes property or businesses.
5
Assessment
This unit standard will 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.
6
This unit standard must be assessed via a face-to-face role play where candidates
are given the opportunity to demonstrate their rapport building, negotiation, and
drafting skills.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23137 version 3
Page 3 of 7
7
For assessment against this unit standard, a listing for a property must be supplied
by the Assessor.
8
Competency under this unit standard alone does not entitle candidates to complete
sale and purchase agreements or facilitate the sale of property until they have met
the licensing requirements of the Real Estate Agents Act 2008.
Outcomes and evidence requirements
Outcome 1
Draft an offer to purchase real estate with a customer, using an Agreement for Sale and
Purchase of Real Estate form.
Evidence requirements
1.1
Approved guides for residential sales are explained and provided to the
customer in terms of the Real Estate Agents Act 2008 and the Code.
Range
1.2
signed acknowledgement.
Current Agreement for Sale and Purchase of Real Estate form is drafted in
accordance with prospective customer’s instructions, and client and industry
requirements.
Range
draft includes is but not limited to – correct legal names of parties,
address of property, legal description, purchase price, chattels,
financing arrangements, GST content requirements, clauses for
use on the Further Terms of Sale page of the Agreement.
1.3
Rapport is maintained with the customer throughout the drafting process in
accordance with industry requirements.
1.4
Need for written offers and accuracy of information recorded on the prescribed
form is explained in accordance with industry requirements.
Range
1.5
Implications of tenancy agreement for tenanted or leased properties are
explained in terms on the prescribed form and legal requirements.
Range
1.6
includes but is not limited to – timeframes for various clauses used
in the agreement.
legal requirements include but are not limited to – Residential
Tenancies Act 1986, settlement date, Real Estate Agents Act
2008.
The prescribed form is explained to the customer before obtaining customer’s
signature.
Range
includes but is not limited to – finance, deposit, LIM, conditions,
warranties, settlement, interest rate for late settlement, chattels.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23137 version 3
Page 4 of 7
1.7
Sufficient originals and copies are identified and provided to meet legal
requirements. Obligations of licensee to retain copies of written offers are
explained in terms of industry requirements.
1.8
Restrictions on a salesperson’s licence, and implications, are explained in terms
of the Real Estate Agents Act 2008.
1.9
Obligations of client and customer are explained in terms of the prescribed
form, misleading or providing false information, and disclosure of information.
Range
includes but is not limited to – approved guides, the Code,
conflicts of interest and obligations of confidence and trust
between the parties.
Outcome 2
Demonstrate the negotiation process between the customer and client for the sale of real
estate.
Evidence requirements
2.1
Negotiation process is explained to be consistent with industry requirements.
Range
includes but is not limited to – defining the outcome of the planned
negotiation, identifying the consequences of non agreement,
confirming acceptable outcomes for all parties, identifying points of
disagreement and agreement, acknowledging all points of view,
summarising and confirming, disclosure of all information.
2.2
Offer is drafted, signed by customer, and presented to the client in the manner
of a skilled and professional facilitator in accordance with industry requirements.
2.3
Rapport is built with potential customers and client throughout the negotiation in
accordance with industry requirements.
Range
set the room, read body language, explain customer's reason and
process, empathy, eye-to-eye contact, explain terms of contract,
overcome objections.
2.4
The effect and consequences of any counter-offer or alterations to the contract
are explained in accordance with legal requirements.
2.5
Closing techniques are demonstrated with the customer and the client.
Range
2.6
includes but is not limited to – methods and techniques for
facilitating closure, signals indicating readiness to close,
techniques for managing objections.
Agreement is signed and initialled by the appropriate signatories and dated by
the salesperson.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23137 version 3
Page 5 of 7
2.7
Acceptance of offer is communicated, conveyed, and dated to all parties in a
timely and professional manner.
2.8
Deposit requirements are explained and receipted in a timely manner.
Range
includes but is not limited to – s122-125 of the Real Estate Agents
Act 2008.
Outcome 3
Demonstrate knowledge of financing options for customers of real estate.
Evidence requirements
3.1
Finance is explained in simple terms consistent with current available options
from lending institutions.
Range
may include – types of mortgages, interest terms, difference
between dealing with a mortgage broker and bank manager,
differences for funding of property or business.
Outcome 4
Explain the requirements for international buyers.
Evidence requirements
4.1
Requirements of the Overseas Investment Act 2005 and the Overseas
Investment Commission are explained in terms of their implications for the
purchase of real estate.
4.2
Property types affected by the Overseas Investment Act 2005 and the Overseas
Investment Commission are identified.
4.3
Clauses and information required to be included in a sale and purchase
agreement are identified and explained in accordance with industry
requirements.
4.4
Minimum requirements for buying a business are explained in terms of
immigration requirements or for non-resident owner.
Range
may include – long term business visa.
Outcome 5
Demonstrate knowledge of after-sales service methods in the real estate industry.
Evidence requirements
5.1
After-sales service methods are explained in accordance with industry
requirements.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23137 version 3
Page 6 of 7
includes – follow up with client and customer regarding dates for
general and further terms of sale within specified timeframes,
maintenance of a database, right of inspection prior to possession
date.
Range
Replacement information
This unit standard replaced unit standard 4658 and unit
standard 4659.
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
Review
2
29 March 2010
31 December 2013
Rollover and
Revision
3
16 August 2012
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
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
NZQA registered unit standard
ElectroTechnology Industry Training Organisation
SSB Code 100401
23137 version 3
Page 7 of 7
 New Zealand Qualifications Authority 2016