NZQA registered unit standard
26152 version 2
Page 1 of 4
Title
Explain the principles of ethics applying to real estate practice
Level
5
Purpose
Credits
4
This unit standard is for people who intend to operate as an
agent in the real estate industry.
People credited with this unit standard are able to:
− describe the principles of business ethics for real estate
practice; and
− demonstrate knowledge of ethics as they apply to the
responsibilities of licensees in the real estate industry.
Classification
Real Estate > Real Estate Practice and Law
Available grade
Achieved
Explanatory notes
1
References
Consumer Guarantees Act 1993;
Contractual Remedies Act 1979;
Contractual Mistakes Act 1977;
Contracts (Privity) Act 1982;
Fair Trading Act 1986;
Illegal Contracts Act 1970;
Privacy Act 1993;
Property Law Act 2007;
Real Estate Agents Act 2008;
and all subsequent amendments and replacements.
2
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.
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.
Industry requirements mean all actions must comply with 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.
Licensee means an agent, branch manager or salespersons.
ElectroTechnology industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26152 version 2
Page 2 of 4
The 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.
Ethics, in a business context, mean doing what is legally and morally right.
Prudential ethics mean doing the right thing to ensure credibility, transparency, and
consumer confidence above and beyond the minimum legal requirements.
Moral ethics mean behaviour customary in our culture or society.
Business ethics mean doing what is legally and morally right. It applies to all aspects
of business conduct and is relevant to the conduct of individuals and business
organisations as a whole.
REINZ means the Real Estate Institute of New Zealand.
REINZ Codes of Ethics may be applicable to this unit standard. These are available
from 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.
Outcomes and evidence requirements
Outcome 1
Describe the principles of business ethics for real estate practice.
Evidence requirements
1.1
Business ethical principles and their underlying values are described in terms of
real estate practice in accordance with industry requirements.
1.2
Prudential ethics and moral ethics are explained as applied to the real estate
practice in accordance with industry requirements.
Outcome 2
Demonstrate knowledge of ethics as they apply to the responsibilities of licensees in the
real estate industry.
Evidence requirements
2.1
Two ethical dilemmas are analysed in terms of ethical principles.
Range
2.2
ethical dilemmas include but are not limited to – disclosure to
client or customer, handling of privileged information, duty of care
to potential customer, professional duty of care of documentation
in real estate practice, impartiality in negotiation procedures,
ethical principles include but are not limited to – fairness, duty of
care, personal conduct, disclosure, lack of bias, impartiality,
consistency.
Implications of unethical behaviour are explained in terms of industry
requirements as applied to ethical dilemmas.
ElectroTechnology industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
2.3
26152 version 2
Page 3 of 4
The nature and effect of undue influence and duress are described in terms of
ethical behaviour as applied to ethical dilemmas.
includes but is not limited to – mistakes in contracts of agency,
mistakes in the Agreement for Sale and Purchase of Real Estate
form.
Range
2.4
The nature and effect of misrepresentation and misleading and deceptive
conduct are described in terms of ethical behaviour and industry requirements,
as applied to an ethical dilemma.
2.5
Consequences of unethical behaviour are described in terms of implications to
the business.
includes but is not limited to – legal, prudential, repeat business,
reputation.
Range
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
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.
ElectroTechnology industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26152 version 2
Page 4 of 4
Comments on this unit standard
Please contact the ElectroTechnology Industry Training Organisation
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