23135 version 1
Page 1 of 4
Demonstrate knowledge of the law of contract and the law of agency
Purpose
This unit standard is for people preparing for entry into 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
given contracts.
Subfield
Real Estate
Domain
Real Estate Practice and Law
Status
Registered
Status date
18 December 2006
Date version published
'l8 December 2006
Planned review date
31 December 201 1
Entry information
Open.
Replacement information
This unit standard, unit standard 23136, and unit
standard 23141 replaced unit standard 4654 and unit
standard 4665.
Accreditation
Evaluation of documentation and visit by NZQA and
industry.
Standard setting body (SSB)
REINZ Industry Training Organisation Ltd
Accreditation and Moderation Action Plan (AMAP) reference
0070
This AMAP can be accessed at
Special notes
1
The REINZ lndustry Training Organisation Ltd will provide Assessment Guidelines to
assist accredited providers to interpret performance criteria. lndustry Best Practice
Guidelines are contained in Assessment Guidelines and in Codes of Practice.
Applications for Assessment Guidelines should be addressed to: The REINZ lndustry
Training Organisation Ltd, PO Box 5663, Auckland.
@ New Zealand Qualifications Authority 2008
23135 version 1
Page 2 of 4
2
Legislation
Civil Union Act 2004 ss3-4; Consumer Guarantees Act 1993 ss2, 28, 29, 32, 33, 35,
36, 41, 43, 45; Contracts (Privity) Act 1982 s4; Contracts Enforcement Act 1956 s2;
Contractual Mistakes Act 1977 s6; Fair Trading Act 1986 ss2, 9-11, 13, 14; Human
Rights Act 1993 ss2, 21, 44, 53, 54; Joint Family Homes Act 1964 ss2, 5-7, 9-10;
Overseas lnvestment Act 2005 ss10-12, 23; Overseas lnvestment Regulations 2005
regs 5, 12, 37; Privacy Act 1993 ss2, 6; Property (Relationships) Act 1976 ss2-2E, 89A; Real Estate Agents Act 1976 ss2, 16, 62-64; Residential Tenancies Act 1986
ss2, 23-32; Trustee Act 1956 ss2, 13A-13Q, 14-16, 31-32; and Unit Titles Act 1972
S S ~ - 46,, 15, 16.
3
RElNZ Code of Ethics, REIN2 Rules of Practice, and RElNZ Codes of Practice
including - Property Managers Code of Practice, Tender Code of Practice and
Auction Code of Practice, are available at
. For assessment
against this unit standard, candidates will have access to the full RElNZ Rules, which
are available to members of REINZ.
4
Definitions
RElNZ stands for Real Estate Institute of New Zealand Inc.
The Agreement for Sale and Purchase of Real Estate form is the RElNZ and
Auckland District Law Society (ADLS) approved form.
Common Law is also known as case law - jljdgements made by courts, rather than
laws written by parliament.
5
Common Law judgements relating to the duties of an 'agent' may be applicable to
this unit standard.
6
Assessment
This unit standard will be assessed against 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.
Elements and performance criteria
Element 9
Explain the law of contract as it governs real estate sales contracts.
Performance criteria
1.I
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.
O New Zealand Qualifications Authority 2008
23135 version 1
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Explain the provisions of the law of agency.
Performance criteria
2. 1
The relationship between principal and agent, and how the relationship may be
created is explained in terms of the law of agency.
Range
2.2
express appointment of an agency, implied, estoppel, subsequent
ratification.
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 nature of contracts of agency is explained as set down in law.
2.5
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
2.6
includes but not limited to - master agency.
Compliance and non-compliance of agency establishment is determined and
supported by reference to RElNZ Rules and Real Estate Agents Act 1976.
Range
Real Estate Agents Act 1976 s62, RElNZ Rules Rule 14.2;
Introduction, instrumentality, and effective cause.
Determine appropriate signatories for given contracts.
Range
given contracts include - listing forms, Agreement for Sale and Purchase of
Real Estate forms, tenancy agreements.
PerFormance criteria
3.1
Signatories are determined relevant to the individual contract.
Range
by reference to Property (Relationships) Act 1976, Joint Family
Homes Act 1964, Civil Union Act 2004, and Trustee Act 1956.
GI New Zealand Qualifications Authority 2008
23135 version 1
Page 4 of 4
Please note
Providers must be accredited by the Qualifications Authority, or an inter-institutional body
with delegated authority for quality assurance, before they can report credits from
assessment against unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be accredited by the Qualifications Authority before
they can register credits from assessment against unit standards.
Accredited providers and Industry Training Organisations assessing against unit standards
must engage with the moderation system that applies to those standards.
Accreditation requirements and an outline of the moderation system that applies to this
standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The
AMAP 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 REINZ Industry Training Organisation Ltd Isouthwick@reinz.co.nz if
you wish to suggest changes to the content of this unit standard.
O New Zealand Qualifications Authority 2008
23136 version 1
Page 1 of 4
Demonstrate knowledge of misleading and deceiving conduct and
misrepresentation
Level
4
Credits
4
Purpose
This unit standard is for people preparing for entry into the real estate
industry as salespersons. People credited with this unit standard are able to:
explain the legal concept and the implications of misrepresentation in terms
of real estate practice; explain the implications of the Fair Trading Act 1986
and Health and Safety in Employment Act 1992 as applied to real estate
contracts, salespeople, and real estate agents in terms of unfair practices;
and explain the legal provisions of the Contractual Remedies Act 1979 as
applied to real estate practice.
S ubfield
Real Estate
Domain
Real Estate Practice and Law
Status
Registered
Status date
18 December 2006
Date version published
18 December 2006
Planned review date
31 December 201 1
Entry information
Open.
Replacement information
This unit standard, unit standard 23135, and unit
standard 23141 replaced unit standard 4654 and unit
standard 4665.
Accreditation
Evaluation of documentation and visit by NZQA and
industry.
Standard setting body (SSB)
RElNZ Industry Training Organisation Ltd
Accreditation and Moderation Action Plan (AMAP) reference
0070
This AMAP can be accessed at
@ New Zealand Qualifications Authority 2008
23136 version 1
Page 2 of 4
Special notes
1
The REINZ lndustry Training Organisation Ltd will provide Assessment Guidelines to
assist accredited providers to interpret performance criteria. lndustry Best Practice
Guidelines are contained in Assessment Guidelines and in Codes of Practice.
Applications for Assessment Guidelines should be addressed to: The REINZ Industry
Training Organisation Ltd, PO Box 5663, Auckland.
2
Legislation
Consumer Guarantees Act 1993 ss2, 28, 29, 32, 33, 35, 36, 41, 43, 45; Contracts
(Privity) Act 1982 s4; Contractual Mistakes Act 1977 s6; Contractual Remedies Act
1979 ss4-11; Fair Trading Act 1986 ss2, 9-1 1, 13, 14; Health and Safety in
Employment Act 1992; Human Rights Act 1993 ss2, 21, 44, 53, 54; Overseas
lnvestment Act 2005 ss10-12, 23; Overseas Investment Regulations 2005 regs 5, 12,
37; Privacy Act 1993 ss2, 6; Real Estate Agents Act 1976 ss2, 16, 62-64; Residential
Tenancies Act 1986 ss2, 23-32; and Unit Titles Act 1972 ss2-4, 6, 15, 16.
3
Definition
REIN2 stands for Real Estate Institute of New Zealand Inc.
Common Law is also known as case law -judgements made by courts, rather than
laws written by parliament.
4
Common Law judgements relating to the duties of an 'agent' may be applicable to
this unit standard.
5
Assessment
This unit standard will be assessed against 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.
Elements and performance criteria
Explain the legal concept and the implications of misrepresentation in terms of real estate
practice.
Performance criteria
1
Misrepresentation is explained in terms of the Fair Trading Act 1986.
1.2
Misleading and deceiving is explained in terms of the Fair Trading Act 1986.
1.3
Penalties for breaches of the Fair Trading Act 1986 are explained as applied to
false or misleading representation.
O New Zealand Qualifications Authority 2008
23136 version 1
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Element 2
Explain the implications of the Fair Trading Act 1986 and Health and Safety in
Employment Act 1992 as applied to real estate contracts, salespeople, and real estate
agents in terms of unfair practices.
Per%ormancecriteria
2.1
The main provisions of the Fair Trading Act 1986 are explained as they relate to
real estate practice.
Range
2.2
including but not limited to - unfair practices, provision of
information, penalties, compliance requirements, section 14 Fair
Trading Act 1986;
real estate practice includes - property management, sale of
businesses, rural or residential property, commercial or industrial
property.
Implications of false or misleading representations or deceptive conduct in
advice or information offered to vendors and purchasers are explained in terms
of the Fair Trading Act 1986.
* . .
2.3
Implications of false or misleading representations in real estate advertisements
relating to land, property, or businesses are explained in terms of the Fair
Trading Act 1986.
2 -4
Risks and implications for the salesperson under the Health and Safety in
Employment Act 1992 are explained.
Range
open homes, showing of any property to purchasers.
Element 3
Explain the legal provisions of the Contractual Remedies Act 1979 as applied to real
estate practice.
Performance criteria
3.1
Implications of false or misleading representations in advice, advertisements, or
information offered to real estate vendors and purchasers is explained in terms
of the Contractual Remedies Act 1979.
Range
3.2
includes implications for real estate and businesses sales (all
sectors), letting and leasing, property management.
Remedies available under the Contractural Remedies Act 1979 for false or
misleading representations in advice, advertisements, or information offered is
explained in accordance with the legislative requirements.
@ New Zeatand Qualifications Authority 2008
23136 version "1
Page 4 of 4
Please note
Providers must be accredited by the Qualifications Authority, or an inter-institutional body
with delegated authority for quality assurance, before they can report credits from
assessment against unit standards or deliver courses of study leading to that assessment.
lndustry Training Organisations must be accredited by the Qualifications Authority before
they can register credits from assessment against unit standards.
Accredited providers and Industry Training Organisations assessing against unit standards
must engage with the moderation system that applies to those standards.
Accreditation requirements and an outline of the moderation system that applies to this
standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The
AMAP 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 RElNZ Industry Training Organisation Ltd Isouthwick@reinz.co.nz if
you wish to suggest changes to the content of this unit standard.
O New Zealand Qualifications Authority 2008
4700 version 5
Page 1 of 4
Manage trust accounts in real estate firms
Level
5
Credits
4
Purpose
This unit standard is for people who intend to operate as branch managers or
licensees in the real estate industry. People credited with this unit standard
are able to: receive money in the capacity of a real estate agent, issue
receipts for money, deposit money in trust accounts, and hold money in trust
accounts for prescribed periods; make payments from trust accounts to
entitled and authorised persons; maintain records and transactions, and
account for transactions to entitled persons; and explain appointment and
notification requirements for auditors.
Subfield
Real Estate
Domain
Real Estate Management
Status
Registered
Status date
18 December 2006
Date version published
18 December 2006
Planned review date
31 December 201 1
Entry information
Open.
Accreditation
Evaluation of documentation and visit by NZQA and
industry.
Standard setting body (SSB)
RElNZ Industry Training Organisation Ltd
Accreditation and Moderation Action Plan (AMAP) reference
0070
This AMAP can be accessed at
Special notes
1
The RElNZ Industry Training Organisation Ltd will provide Assessment Guidelines to
assist accredited providers to interpret performance criteria. Industry Best Practice
Guidelines are contained in Assessment Guidelines and in Codes of Practice.
Applications for Assessment Guidelines should be addressed to: The RElNZ Industry
Training Organisation Ltd, PO Box 5663, Auckland.
@ New Zealand Qualifications Authority 2008
4700 version 5
Page 2 of 4
2
Legislation
Consumer Guarantees Act 1993 ss2, 28, 29, 32, 33,35, 36, 41,43,45; Fair Trading
Act 1986 ss2, 9-1 1, 13, 14; Human Rights Act 1993 ss2, 21,44, 53, 54; Overseas
lnvestment Act 2005 ss10-12, 23; Overseas Investment Regulations 2005 regs 5, 12,
37; Privacy Act 1993 ss2, 6; Real Estate Agents Act 1976 ss2, 16, 56-58, 60, 62-64;
Real Estate Audit Regulations 1977 regs 1-13; Residential Tenancies Act 1986 ss2,
23-32; and Unit Titles Act 1972 ss2-4, 6, 15, 16.
3
Definitions
REINZ stands for Real Estate Institute of New Zealand Inc.
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
1976 and Real Estate Agents Audit Regulations 1977.
4
Assessment
This unit standard will be assessed against 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.
Elements and performance criteria
Element ?
Receive money in the capacity of a real estate agent, issue receipts for money, deposit
money in trust accounts, and hold money in trust accounts for prescribed periods.
PerFormance criteria
1.I
Money is received and receipts are issued in accordance with Regulations 7
and 8 of the Real Estate Agents Audit Regulations 1977.
I .2
Money received is recorded in cash books, journals, ledgers, or computer
records, in accordance with company procedures and bank requirements.
1.3
Money received is paid into trust accounts in accordance with section 56 of the
Real Estate Agents Act 1976.
1 .4
Money received is held for prescribed periods in accordance with section 57 of
the Real Estate Agents Act 1976.
1.5
Company records and bank records are reconciled monthly in accordance with
company procedures.
Range
for assessment evidence of two monthly reconciliations must be
carried out.
O New Zealand Qualifications Authority 2008
4700 version 5
Page 3 of 4
Element 2
Make payments from trust accounts to entitled and authorised persons.
PerFormance criteria
2.1
Payments are made within prescribed periods to entitled and authorised
persons in accordance with Regulation 7 of the Real Estate Agents Audit
Regulations 1977.
2.2
Payments made are recorded in cash books, journals, and ledgers, or computer
records, in accordance with company procedures.
Maintain records and transactions, and account for transactions to entitled persons.
Performance criteria
3.1
Trust account transactions are recorded in accordance with Regulation 7 of the
Real Estate Agents Audit Regulations 1977 and company procedures.
3.2
Written accounts of transactions are given to entitled persons within prescribed
periods in accordance with section 58 of the Real Estate Agents Act 1976.
3.3
Statements of account for trust accounts are prepared and presented to entitled
persons in accordance with company procedures.
3.4
Monthly trust reconciliations are made available to auditors and the Secretary of
the Real Estate Institute on demand in accordance with Regulation 7 of the
Real Estate Agents Audit Regulations 1977.
Element 4
Explain appointment and notification requirements for auditors.
PerFormance criteria
4. I
Explanation includes procedures and notifications requirements to appoint
auditors in accordance with section 60 of the Real Estate Agents Act 1976, and
Regulations 4, 5, and 6 of the Real Estate Agents Audit Regulations 1977.
4.2
Explanation includes a licensee's audit obligations and duties in accordance
with Regulations 6 and 7 of the Real Estate Agents Audit Regulations 1977.
Please note
Providers must be accredited by the Qualifications Authority, or an inter-institutional body
with delegated authority for quality assurance, before they can report credits from
assessment against unit standards or deliver courses of study leading to that assessment.
@ New Zealand Qualifications Authority 2008
4700 version 5
Page 4 of 4
Industry Training Organisations must be accredited by the Qualifications Authority before
they can register credits from assessment against unit standards.
Accredited providers and lndustry Training Organisations assessing against unit standards
must engage with the moderation system that applies to those standards.
Accreditation requirements and an outline of the moderation system that applies to this
standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The
AMAP 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 RElNZ Industry Training Organisation Ltd Isouthwick@reinz.co.nz if
you wish to suggest changes to the content of this unit standard.
O New Zealand Qualifications Authority 2008
b