Assessment 1
[REPA Sect 1 - 6 Real Estate]
AR Course - Queensland
Training Package CPP07 Property Services
CPP40307 Certificate IV in Property Services (Real Estate)
Distance Learning
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CPPDSM4008A Identify legal and ethical requirements of property sales to
complete agency work
CPPDSM4009 Interpret legislation to complete work in the property industry
CPPDSM4010A Lease property
CPPDSM4012A List property for sale
CPPDSM4015B Minimise agency and consumer risk
CPPDSM4022A Sell and finalise the sale of property by private treaty
CPPDSM4080A Work in the real estate industry
Learner Instructions
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Assessment
Section 1.
A Real Estate Career in Queensland
Why CPD?
1.1 Describe why is it necessary to continue to undertake training.
(about 30 words)
Training is necessary at the outset, in order to be certified for the purpose of working as a
licenced agent within the Real Estate Industry, and training also enables already qualified
agents to maintain general competency, as well as to keep their skills and knowledge up to
date with industry advances and legislative changes.
CPD sources
1.2 Identify and list the opportunities available for continuing professional development.
(about 30 words)
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Mentoring and coaching within the workplace environment
Studying further/additional formal training and short courses
Attending Industry events such as conferences and seminars
Participating in Networking Activities
Getting Professional Memberships
Engaging in the activity like research and reading
Section 2.
Required Skills & Knowledge
General skills
2.1 Name 6 types of general skills that you will need to develop.
The general skills that we need to develop are as follows:
 Communication and interpersonal and negotiation skills.
 Planning, Organising, and scheduling skills
 Research and analytical skills
 Decision making and problem-solving skills
 Record keeping and Computer skills
 Ability to deal with conflict and risk management skills
Section 3.
Agency Ownership
Types of ownership
3.1 What are the 3 main types of business ownership?
The 3 main types of business ownership are
 Sole Trader
 Partnership, and
 Company
Starting a business
3.2 Starting a Real Estate business in Queensland
Using information available from the Internet and REPA Training 1, provide a couple of
paragraphs in your own words about;
a) The various business ownership options
b) The basic agency structure - personnel requirements, a very brief overview of 3
key agency staff roles and responsibilities
c) The typical services offered by an agency and typical categories of clients (or
parties to a real estate transaction)
d) Basic legislative requirements
You can use the links provided in the Useful Links list of the LRC or you could also do a
Google search of “starting a real estate business”
Note: This Activity has no set answer and only requires that write down what you find in
your research.
a) The main types of business ownership are Sole Trader, Partnership, and Company.
The selection of this business type will affect how it is structured and what rules will
apply to the business.
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Sole Trader – In Sole Trader, you are the sole business owner and you
trade in your own name.
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Partnership – In partnership, two or more persons engaged in business
together with a motive to make profit.
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Company – A company is a separate legal entity, meaning company will
have its own assets and liabilities. It is the most common business
structure.
b) The basic agency structure includes a Principal, Sales personnel, Property
Management personnel and Admin personnel.
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The Principal – operates the agency and employs the staff
The Sales personnel – get listings and negotiate the sales
The Property Management personnel – handle the agencies rental
c) The typical services offered by an agency are as follows:
 Residential sales and property management
 property management business development
 commercial/industrial/retail property sales and management
 auctioneering
 buyer’s agent
 stock and station agent
 business broker
and typical categories of clients are as follows:
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vendor/seller – the party offering to divest itself of ownership of the property
purchase/buyer – the party bidding to acquire ownership of the property
landlord/rental provider/lessee – the party offering to allow conditional use
of the property for a period of time
tenant/renter – the party bidding to use the property for a period of time
d)
It is a basic legislative requirement that all companies need to be registered
through ASIC (the Australian Securities and Investment Commission)
Section 4.
Legislation of Agency Practices
The Acts
4.1 Name the Act that governs real estate practices for each state shown.
Queensland
Property Occupations Act 2014
New South Wales
Property and Stock Agents Act 2002
Victoria
Estate Agents Act
Western Australia
Real Estate and Business Agents Act
The authorities
4.2 Name the state authorities responsible for governing real estate practices in the
following states.
Queensland
Dept. of Justice, Office of Fair Trading
New South Wales
Office of Fair Trading
Victoria
Consumer Affairs
Western Australia
Department of Mines, Industry Regulation and Safety
Specialist legislation
4.3 Name 1 Act in Queensland that provides some legislation for each of the areas shown.
Anti-discrimination
The Queensland Anti-Discrimination Act 1991
Consumer protection
Office of Fair Trading
Employment
The Property Occupations Act 2014 Queensland
Financial services
Business Qld
Privacy
The Office of the Information Commissioner
OH&S
Workplace Health and Safety
Queensland
Updates
4.4 Name 6 strategies for ensuring that changes and updates to Queensland legislation are
adequately monitored.
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Maintaining a register of legislation and industry codes
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Appointing staff to monitor amendments and track changes
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Communication through regular meetings
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Legislation training and refresher trainings
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Updates of policies and procedures
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Information from industry bodies including REI’s
Section 5.
Personnel, Roles & Responsibilities
Agency roles
5.1 Name the 8 key roles in a typical Queensland agency.
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The Principal Licensee or Real Estate Agent
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The Agent’s Representative or Salesperson
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The Property Manager
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A Licensed Real Estate Agent
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Strata Managing Agent
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Business Broker
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Auctioneer
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The Receptionist or Personal Assistant
The Principal - Management
5.2 Name 4 management responsibilities of the typical Queensland Agency Principal.
(about 20 words)
The 4 management responsibilities of the typical Queensland Agency Principal are as
follows:
 Operating the real estate agency
 Employing and supervising staff
 Setting policy for marketing and selling real estate
 Running the trust account
The Principal - Employment
5.3 Name 2 employer responsibilities of the typical Queensland Agency Principal.
(about 40 words)
The 2 employer responsibilities of the typical Queensland Agency Principal are as follows:
 Appointing an agent’s representative or salesperson or property manager to
arrange a transaction on the principal’s behalf, evidenced by written authority to do
so
 Ensuring that the appointed representatives always act in the client’s best interests,
follow the client’s lawful instructions, and engage in good estate agency practice.
Licence lending
5.4 Are there any circumstances in Queensland where a licensed agent can loan his/her
licence or permit an unauthorized person to use it? Yes or No.
No
Penalties
5.5 Describe the penalties that may be imposed for a licensed agent found guilty of licence
lending in Queensland. (about 40 words)
The penalties are as follows:
 A caution or reprimand,
 a directive or instruction to take a particular action,
 an undertaking to agree to operate in a certain manner, and
 even a monetary penalty or licence disqualification or suspension
The agent in charge
5.6 Describe the role of the licensed agent in charge in Queensland.
(about 25 words)
An agent in charge must supervise the estate agency business and employees, including
the agents’ representatives, and take reasonable steps to ensure that they comply with Acts
and law affective real estate.
Principal’s functional role
5.7 Name 4 functional responsibilities of the typical Queensland Agency Principal.
(about 40 words)
The 4 functional responsibilities of the typical Queensland Agency Principal are as follows:
 Act on behalf of owners, buyers, and tenants to arrange the sale or lease of
property including houses, buildings, factories, shops, farms, land, and businesses.
 Provide market appraisals of properties and businesses for clients
 Negotiate the sale or lease of properties and businesses
 Collect rent and manage rental properties
Breach of contract
5.8 What is a breach of contract? (about 25 words)
A breach of contract is a breach of a legal duty or failure on the part of the agent (or their
representative) to do something that is required in a contract.
Negligence
5.9 When is an agent guilty of negligence? (about 25 words)
An agent is guilty of negligence when an agent is negligent and in breach of duty of care by
committing a wrongful act or omission or making verbal mis-statements when providing
information and giving advice.
Penalties
5.10 What penalties may be imposed for such a breach? (about 30 words)
The following penalties may be imposed for such a breach:
 A warning being given
 A fine being imposed
 A written undertaking being executed that states that the conduct will not occur
again
 Criminal/police action
 The cancellation or suspension of your licence
 Legal action/claims against you for loss/damage from clients
Licensing
5.11 Name the jurisdictional authority in these states that administers registration for
agent’s representatives and salespeople.
Queensland
Department of Justice, Property Occupations Act
New South Wales
NSW Fair Trading, Property, Stock and Business Agents Act
Victoria
Consumer Affairs Victoria, Estate Agents Act
Western Australia
DMIRS, Real Estate and Business Agents Act
Eligibility
5.12 Name 8 eligibility conditions for licensing in Queensland.
(about 50 words)
The 8 eligibility conditions for licensing in Queensland are as follows:
 Have passed a prescribed course
 Be at least 18 years of age
 Have a registered office address in the state
 Be a fit and proper person of good character
 Not have a disqualifying criminal record
 Not be an insolvent under administration
 Not be disqualified from holding an estate agent’s licence
 Not be the director or officer of a corporation that is disqualified
Registration
5.13 Does an agent’s representative or salesperson have to be registered in Queensland?
Yes or No
Yes, agent’s representative or salesperson have to be registered in Queensland.
Job description
5.14 Describe the authority document for an agent’s representative or salesperson.
(about 40 words)
A detailed description of the scope and extent of the duties and authority of an agent's rep
must be completed by the principal for each agent's representative. This document
formalises and specifies the functions that the employee can perform on behalf of the
principal.
Roles
5.15 Name the typical roles for an agent’s representative or salesperson that might be
detailed on an authority document, job description or employment register.
(about 65 words)
The following duties are typical roles included in this authority document:
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Prospecting for new listings
Provide market appraisals - give an estimate of the selling price of the property
Advise on a method of sale
Develop a marketing plan
Develop and conduct marketing activities
Advertise and market the property
Organize and attend open house inspections
Qualifying buyers, property inspections
Communicate all offers to the vendor - negotiating the sale
Arrange and conduct an auction
Arrange the signing of the contract by both parties
Authority
5.16 Describe what an agent’s representative or salesperson can be authorized to do.
(about 25 words)
An agent's representative or salesperson can be authorized to act under the authority of the
principal in the sale, purchase, lease or management of real property.
Authority
5.17 Describe what an agent’s representative or salesperson can NOT be authorized to do.
(about 20 words)
An agent's representative or salesperson cannot be authorised to operate a trust account or
operate a real estate agency.
Eligibility
5.18 Name 6 eligibility conditions for registration as an agent’s representative or
salesperson. (about 40 words)
The 6 eligibility conditions for registration as an agent’s representative or salesperson are
as follows:
 Have passed a prescribed course
 Be at least 18 years of age
 Undertake a police check
 Not have a disqualifying criminal record
 Not be an insolvent under administration
 Not be disqualified from holding a licence or acting as an agent's representative.
Auctioneer Authority
5.19 Describe what an auctioneer can and cannot do. (about 40 words)
An auctioneer may conduct an auction. An auctioneer is not authorised to operate a trust
account or act in an agency relationship as an estate agent or business broker, operate a
real estate agency, or act as an agent's representative or salesperson unless licensed
accordingly.
Independent Contractors
5.20 Describe what independent contractors are and their obligations.
(about 85 words)
An independent contractor is someone who is self-employed and contracts their services to
clients, such as other businesses. Independent contractors aren't employees and have
different rights. As an independent contractor the sales agent needs to be fully licensed and
self-provide for workers compensation and superannuation.
Providing an ABN or an invoice for payment may not mean a worker is an independent
contractor. Labelling people as independent contractors or getting them to sign contracts
which state they are doesn't mean this either.
There are a number of factors that need to be considered. Misrepresenting or disguising an
employment relationship as an independent contracting arrangement is known as 'ham
contracting' and is against the law. Dismissing or threatening to dismiss an employee to
engage them as an independent contractor is also against the law.
Section 6.
Employment Conditions
Commonwealth employment Act
6.1 What Act covers employment in Australia?
Fair Work Act
The Award
6.2 What award covers real estate employees in Australia?
Real Estate Industry Award 2010
State employment Acts
6.3 Name the Act that specifically governs real estate employment for each state shown.
Queensland
The Property Occupations Act 2014
New South Wales
The Property and Stock Agents Act 2002
Victoria
The Estate Agents Act
Western Australia
Real Estate and Business Agents Act 1978
National Employment Standards
6.4 List the 10 National Employment Standards. (title only - no description)

Maximum weekly hours of work
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Requests for flexible working arrangements
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Unpaid parental leave and related entitlements
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Annual leave
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Personal / carer's leave and compassionate leave
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Community service leave
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Long service leave (LSL)
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Public holidays
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Notice of termination of employment and redundancy pay
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Provision of a Fair Work Information Statement (FWIS)
Handling Workplace Disputes
6.5 Name the organization where you can get assistance with dispute resolution.
Fair Work Commission
Wages
6.6 What is the minimum weekly wage for a real estate employee level 2 (representative
level)?
The minimum weekly wage for a real estate employee level 2 is $862.50
Commission only
6.7 Can a sales person in Queensland be paid by commission only? Yes or No.
Yes
Calculating commission
6.8 Given that there are slight variations, which of these percentages of commission (or
agency fee) is most likely to be charged to the client by the office for residential sales in
Queensland?
A. 100%
B. 35%
C. 15%
D. 2.5%
E. 0.5%
D. 2.5%
Calculating commission
6.9 Given that there are slight variations, which of these percentages of sales commission
is most likely to be received by a salesperson in Queensland?
A. 100%
B. 35%
C. 15%
D. 2.5%
E. 0.5%
B.35%
Calculating commission
6.10 Given that all fees quoted to a vendor must be inclusive of GST, if a property is sold for
$450,000 and the negotiated flat commission is say 2.5% (excl GST) then what is the total
office commission (or agency fees) payable (incl GST)?
A. $11,750
B. $12,375
C. $13,275
D. $4,950
E. $4,500
B. $12375
Calculating commission
6.11 Given that all wages are exempt from GST, if a property is sold for $450,000 and the
commission rate is say 2.5% (excl GST) and your share is say 40% of the office
commission before GST then how much will you receive?
A. $11,750
B. $12,375
C. $13,275
D. $4,950
E. $4,500
D. $4,950
Calculating commission
6.12 When a Client tries to negotiate down the commission rate, successful real estate
professionals would most likely …
A. Dismiss his suggestion as ludicrous
B. Walk out in disgust
C. Give in
D. Sell the benefits of the services
D. Sell the benefits of the services
Commission sharing
6.13 Describe commission sharing or conjunction.
(about 30 words)
This term commission sharing or conjunction applies when two or more agents share the
commission for a sale. The agents may be employed by the same office or work for
different offices.
Commission sharing
6.14 Describe when disclosure of commission sharing or conjunction is NOT required.
(about 25 words)
Disclosure to the client of commission sharing arrangements is NOT required if all of the
agents or agent's representatives work in the same office.
Commission sharing
6.15 Describe when disclosure of commission sharing or conjunction is required.
(about 25 words)
Disclosure is required when arrangements exist with people working outside the agent's
business, e.g. solicitor, accountant, conveyancer or estate agent from another agency.
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