NZQA registered unit standard
26148 version 2
Page 1 of 4
Title
Demonstrate knowledge and use of inspection, appraisal and agency
agreement for real estate property
Level
4
Purpose
Credits
6
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:
–
explain the inspection and appraisal process;
–
explain and demonstrate methods of appraisal as
applicable to two different real estate properties; and
–
explain approved guide and agency agreement to
prospective clients.
Classification
Real Estate > Real Estate Practice and Law
Available grade
Achieved
Explanatory notes
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.
2
References
Building Act 2004;
Consumer Guarantees Act 1993;
Fair Trading Act 1986;
Human Rights Act 1993;
Joint Family Homes Act 1964;
Overseas Investment Act 2005;
Overseas Investment Regulations 2005;
Property Law Act 2007;
Property (Relationships) Act 1976;
Real Estate Agents Act 2008;
Real Estate Agents (Complaints and Discipline) Regulations 2009;
Real Estate Agents (Duties of Licensees) Regulations 2009;
Residential Tenancies Act 1986;
Unit Titles Act 2010;
and all subsequent amendments and replacements.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26148 version 2
Page 2 of 4
3
Definitions
Agency Agreement means an agreement under which an agent is authorised to
undertake real estate agency work for a client in respect of a transaction. It is
commonly known in the industry as a listing form.
CMA means current market analysis.
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.
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.
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.
Property includes residential, rental property, rural, business, commercial or
industrial.
Prospective client means a person who is considering or intending to enter into an
agency agreement with an agent to carry out real estate agency work.
4
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
Explain the inspection and appraisal process.
Evidence requirements
1.1
Purpose of property inspection is explained in a logical sequence in accordance
with industry requirements.
1.2
Information obtained through the inspection is explained in terms of the
appraisal process in accordance with industry requirements.
Outcome 2
Explain and demonstrate methods of appraisal as applicable to two different real estate
properties.
Range
methodologies may include – analysis of sales, CMA, net rate method,
replacement cost method, investment or capitalisation of income method.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26148 version 2
Page 3 of 4
Evidence requirements
2.1
Methods of appraisal are explained as a process for establishing indications of
the current market value in accordance with industry requirements.
2.2
Appraisal methodology is demonstrated as applied to the two specified
properties in accordance with industry requirements.
2.3
Written appraisals are completed, and explained to prospective clients, in
accordance with industry requirements.
Outcome 3
Explain approved guide and agency agreement to prospective clients.
Evidence requirements
3.1
Obligations of licensee and agency are explained in terms of the Real Estate
Agents Act 2008 and the Code.
Range
includes but is not limited to – approved guides, commission
structures, marketing and advertising expenses.
3.2
Approved guide is presented to, and signed by, the client, in accordance with
the Code.
3.3
Purpose of agency agreement form is explained to the prospective client in
accordance with the Code.
Range
includes but is not limited to – types of agency, prospective client
obligations in terms of other agency agreements.
3.4
Signatories of authorities are obtained consistent with industry requirements.
3.5
An agency agreement form is completed in accordance with information
obtained and industry requirements.
3.6
Clients are qualified and relationships developed to determine motives, wants,
and needs.
Range
qualifying includes but is not limited to – clients' dominant selling
motives, impact of clients' motivations on asking price, initial
asking price ranges for properties, clients' preferred financial
arrangements and timeframes for the sale of properties, impact of
rental price range on selling price range, indicative
agency/marketing preferences.
Replacement information
This unit standard replaced unit standard 23139.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
Planned review date
26148 version 2
Page 4 of 4
31 December 2015
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
12 February 2010
31 December 2013
Rollover and
Revision
2
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