NZQA registered unit standard
22303 version 3
Page 1 of 5
Title
Apply entrepreneurship and innovation in a property investment
context
Level
6
Purpose
Credits
6
This unit standard is for people who intend to operate as
agents in the real estate industry.
This unit standard is not for people who provide property
investment advice regulated under the Financial Advisers Act
2008.
People credited with this unit standard are able to:
–
identify and apply entrepreneurship and innovation to
demonstrate how alternative uses, or flexibility of use, of
premises may enhance the value of property;
–
assess the implications of accounting and financing
methods on the ability to proceed with, and complete,
successful deals in property investment;
–
identify and explain the implications of the wording of
clauses of leases and contract law that may enable
successful deals to be made;
–
explain and apply two entrepreneurial and innovative
methods used by property developers to enhance the
value of property; and
–
apply risk management principles to property investment
and property development.
Classification
Real Estate > Residential and Commercial Property
Management
Available grade
Achieved
Explanatory notes
1
References
Consumer Guarantees Act 1993;
Fair Trading Act 1986;
Financial Advisers Act 2008;
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;
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
22303 version 3
Page 2 of 5
Unit Titles Act 2010;
and all subsequent amendments and replacements.
2
Definitions
Agreement for Sale and Purchase of Real Estate form is the REINZ and Auckland
District Law Society (ADLS) approved form or the REINZ Agreement for Buying and
Selling Real Estate and the book of REINZ Standard Clauses.
REINZ means the Real Estate Institute of New Zealand.
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.
Entrepreneurship is an attempt to create value through recognition of business
opportunity; the management of risk-taking appropriate to the opportunity; and,
through communication and management skills, to mobilise human, financial, and
material resources necessary to bring a project to fruition.
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.
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.
Innovation is perception and development of new ideas and solutions.
Contract law means the law that governs the formation and enforceability of
contracts.
3
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.
Outcomes and evidence requirements
Outcome 1
Identify and apply entrepreneurship and innovation to demonstrate how alternative uses,
or flexibility of use, of premises may enhance the value of property.
Evidence requirements
1.1
Styles of management and entrepreneurship that facilitate or inhibit the use of
innovation to enhance value of property are identified.
Range
1.2
a minimum of two styles of management and entrepreneurship.
Entrepreneurship and innovation are applied to demonstrate enhancement of
property value.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
Range
1.3
22303 version 3
Page 3 of 5
includes but is not limited to – multiple use potentiality, flexibility of
use by redesign, change of use.
Feasibility of specific innovative ideas or concepts is assessed to show the
potential increase in property value.
Range
includes but is not limited to – resource management
requirements, cost-benefit analysis, developmental effort, client
needs, ratio of expected return on equity.
Outcome 2
Assess the implications of accounting and financing methods on the ability to proceed
with, and complete, successful deals in property investment.
Evidence requirements
2.1
The assessment identifies the implications of various tax requirements,
financing methods, and financial matters.
Range
includes but is not limited to – leverage and wealth pyramiding,
refinancing, risks involved.
2.2
Assessment is carried out consistent with the Real Estate Agents Act 2008 and
industry requirements.
2.3
Viability of the property investment is explained in terms of ability to proceed
with and complete successful property investment deals.
Outcome 3
Identify and explain the implications of the wording of clauses of leases and contract law
that may enable successful deals to be made.
Evidence requirements
3.1
Types of leases and titles are explained in terms of their legal implications.
3.2
Methods of terminating and renegotiating contracts are identified and explained.
3.3
Documentation and clauses that enable the successful conclusion of contracts
are identified and explained.
Range
clauses includes but are not limited to those relating to – rights of
renewal, rights of refusal, timing, options, resource management
issues.
Documentation includes – lease documentation, Agreement for
Sale and Purchase of Real Estate form.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
22303 version 3
Page 4 of 5
Outcome 4
Explain and apply two entrepreneurial and innovative methods used by property
developers to enhance the value of property.
Range
includes but is not limited to – bare land, residential property, lifestyle blocks,
commercial and industrial property, rural property, business sales.
Evidence requirements
4.1
Entrepreneurial methods are explained to show innovation in terms of physical
alterations.
may include but is not limited to – construction materials,
construction methods, configuration of the property, improved site
utilisation.
Range
4.2
Entrepreneurial methods are explained and used which show enhancement of
property value by increasing the net returns.
Outcome 5
Apply risk management principles to property investment and property development.
Evidence requirements
5.1
Risk management principles are applied to property investment and property
development.
may include but is not limited to – relationship between risks and
return, rate of return, market fluctuations, delays, cost increases,
refinancing risks.
Range
5.2
Innovative and legal methods of eliminating or reducing risk, while protecting
the risk taker from legal liability, are applied in a property investment context
consistent with industry requirements.
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
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
22303 version 3
Page 5 of 5
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