NZQA registered unit standard
23145 version 3
Page 1 of 5
Title
Facilitate the sale and purchase of businesses
Level
4
Purpose
Credits
4
This unit standard is for salespersons in the business broking
sector of the real estate industry.
People credited with this unit standard are able to:
–
draft an Agreement for Sale and Purchase of a Business
form with customer;
–
demonstrate and explain the negotiation process between
the customer and client for the sale of a business; and
–
demonstrate knowledge of after-sales service methods in
the real estate industry.
Classification
Real Estate > Rural, Residential, Commercial and Business
Sales
Available grade
Achieved
Explanatory notes
1
References
Building Act 2004;
Consumer Guarantees Act 1993;
Employment Relations Act 2000;
Fair Trading Act 1986;
Financial Transactions Reporting Act 1996;
Goods and Services Tax Act 1985;
Holidays Act 2003;
Human Rights Act 1993;
Overseas Investment Act 2005;
Overseas Investment Regulations 2005;
Privacy Act 1993;
Real Estate Agents Act 2008;
Residential Tenancies Act 1986;
Resource Management Act 1991;
Unit Titles Act 2010;
and all subsequent amendments and replacements.
2
Definitions
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.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23145 version 3
Page 2 of 5
The Agreement for Sale and Purchase of a Business form is the REINZ and
Auckland District Law Society (ADLS) approved form.
Businesses include proportional interests in businesses such as partnerships and
shares.
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.
Deposit is consideration toward the purchase of the business and forms part of the
purchase price. Deposit is paid to the real estate agent as a stakeholder and is
deposited in the trust account.
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.
Large businesses are businesses with a profit of over $200,000 per annum.
Medium businesses are businesses with a profit of $100,000 – $200,000 per annum.
Small businesses are businesses with a profit of under $100,000 per annum.
Prospective customer means a person who is considering or intending to enter into
an agency agreement with an agent to carry out real estate agency work.
Company procedures are the specific procedures used in real estate companies and
vary from company to company. All must comply with the Real Estate Agents Act
2008 and any applicable real estate regulations that may apply.
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 Codes of Practice guides are available from REINZ National Office or at
http://www.reinz.co.nz.
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.
4
Evidence must be presented for two different businesses with different clients and
customers.
Outcomes and evidence requirements
Outcome 1
Draft an Agreement for Sale and Purchase of a Business form with customer.
Range
business may be a small, medium, or large business.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23145 version 3
Page 3 of 5
Evidence requirements
1.1
Current Agreement for Sale and Purchase of a Business form is drafted
consistent with prospective customer’s instructions and client and industry
requirements.
Range
draft includes but is not limited to – legal names of parties,
address of business, description of the business, name of
business, tangible assets, intangible assets, stock in trade, total
purchase price, deposit, financing arrangements, GST content
requirements, maximum percentage stock value adjustment,
turnover warranty, client assistance period, client restraint of trade,
lease details.
1.2
Special business conditions of sale are consistent with the guidelines provided
in REINZ Useful Clauses and Authorities.
1.3
Tangible and intangible assets are agreed between parties and documented in
the Agreement.
1.4
Settlement checklist is completed in its entirety consistent with company
procedures.
1.5
Written transaction report is prepared consistent with industry requirements.
1.6
Accuracy of information recorded on the draft is demonstrated and explained in
terms of legal requirements and client and customer requirements.
Range
includes but is not limited to – timeframes for various clauses used
in the Agreement, correct legal descriptions, correct client and
customer name.
1.7
Agreement for Sale and Purchase of a Business form is explained to the
customer before obtaining customer’s signature in accordance with company
procedures and industry requirements.
1.8
Sufficient originals and copies are produced to meet industry requirements.
1.9
Obligations of client and customer are explained in terms of the Agreement.
Outcome 2
Demonstrate and explain the negotiation process between the customer and client for the
sale of a business.
Range
business may be a small, medium, or large business.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23145 version 3
Page 4 of 5
Evidence requirements
2.1
Negotiation process is explained and the sale of the business is negotiated
consistent with industry practice.
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.
2.2
Drafted offer is presented to the client in a professional manner consistent with
the Code.
2.3
Any new or counter-offers are obtained, recorded, and counter-signed by both
parties.
2.4
Signed Agreement for Sale and Purchase of a Business forms are checked for
consistency with industry requirements.
2.5
The effects and consequences of any counter-offer or alterations to the contract
are explained to client and customer in accordance with industry requirements.
2.6
Closing techniques are demonstrated with the customer and the client.
Range
includes but is not limited to – methods and techniques for
facilitating closure, signals indicating readiness to close,
techniques for managing objections.
2.7
Demonstration of rapport being built with the potential customers and client
throughout the negotiation is in accordance with industry requirements.
2.8
Communication skills are used to facilitate an amicable outcome for both
parties.
Range
communication skills may include but are not limited to –
attending, clarifying, listening, questioning, paraphrasing, reflection
of feeling and content, summarising.
2.9
Agreement is signed and initialled by the appropriate signatories and dated by
the licensee in accordance with industry requirements.
2.10
Acceptance of the offer is communicated to all parties in a timely and
professional manner and in accordance with the Code.
2.11
Deposit requirements are explained to customer and receipted in a timely
manner in accordance with company procedures and industry requirements.
Outcome 3
Demonstrate knowledge of after-sales service methods in the real estate industry.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23145 version 3
Page 5 of 5
Evidence requirements
3.1
After-sales service methods are described consistent with company procedures.
Range
follow up of client and customer regarding dates for general and
further terms of sale within specified timeframes; maintenance of a
database.
Replacement information
This unit standard replaced unit standard 4692.
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
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