课 cppdsm4011a cppdsm4012a list property for lease

___________________________________________________ CPP40307 Certificate IV in Property (Sales)

CPPDSM4011A (Elective) List Property for Lease CPPDSM4012A (Elective) List Property for Sale

Participant Learning Guide © The Australian Salesmasters Training Co

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

Contact Page

Australian Salesmasters Training Co P/L Registered Training Organisation #6854

Phone: Fax: Email: Mail:

(02) 9700 9333 (02) 9700 8988 Info@thesalesmasters.com.au PO BOX 638, Rosebery, NSW 2018

Training Room: Suite 203 30-40 Harcourt Parade Rosebery, NSW

www.thesalesmasters.com.au

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

COPYRIGHT Copyright in the whole and every part of this Courseware whether in the form of a written manual, document, email, seminar or otherwise belongs to Agency Training Australia and The Australian Salesmasters (the “Owner�) and may not be used, sold, licensed, transferred, copied or reproduced in whole or in part in any manner or form or in any media to any person other than for the purposes and subject to the conditions prescribed under the Copyright Act or otherwise without the prior written consent of the Owner.

DISCLAIMER This work is the result of wide consultations with industry consultants and participants. It is a collaborative view and does not necessarily represent the view of Agency Training Australian and The Australian Salesmasters.

For the sake of brevity it may omit factors that could be pertinent in particular cases. Therefore it should not be regarded as professional advice and it should not be relied upon in any matter without obtaining appropriate advice relevant to your circumstances.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

Table of Contents Page No

Course Descriptor Reference List

5 9

Introduction

10

Risks

23

Workplace Project

24

Case Study

26

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

CPPDSM4011A List property for lease This unit of competency specifies the outcomes required to list all types of property and businesses for lease. It includes implementing procedures for promoting agency’s property management services, establishing client requirements, planning and delivering property listing presentations, finalising listings for the lease of property, and recording and acting on client instructions.

This unit does not address listings for property sales or the actual marketing or lease of the property under an agency contract.

Application of the unit This unit of competency supports the work of licensed real estate agents and real estate representatives involved in the listing of all types of property and businesses for lease.

ELEMENT PERFORMANCE CRITERIA 1 1.1 1.2

1.3 1.4

2 2.1 2.2 2.3 2.4

3 3.1 3.2

4

Promote agency’s property management services.

Promotional activities for gaining new agency listings are evaluated and implemented in line with agency practice and legislative requirements.

Promotional activities aimed at existing agency clients to attract new listings are planned and implemented in line with agency practice and legislative requirements.

Business and personal referral networks are established and maintained in order to attract property listings.

Communication with agency sales department is maintained to identify potential new listings and provide sales staff with rental appraisals.

Establish client requirements.

Enquiries from potential clients regarding property listings are handled promptly to enable high quality service delivery according to agency practice.

Appropriate rapport is established with potential client.

Client requirements regarding property are clarified and accurately assessed using appropriate interpersonal communication techniques.

Appointment is made with client to discuss property listing in line with agency practice.

Plan property listing presentation.

Preparations are made for property listing presentation in line with agency practice.

Promotional material and listing kit are prepared to highlight benefits of agent and agency in line with agency practice, ethical standards and legislative Requirements.

Deliver property listing presentation.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

4.1

Visual inspection of property is conducted to provide client with a realistic range of marketing and leasing options.

4.2 Key decision makers are identified to ensure that their needs and concerns are met in the listing presentation.

4.3 Market influences likely to affect the property listing are discussed with the client.

4.4 Recommended property improvements, estimated costs and likely influence on leasing of property and rental return are discussed with the client.

4.5 Property appraisal is provided that includes realistic estimate of likely rental return.

4.6 Promotional materials, agency listing kit and relevant legal and financial information are used to support the listing presentation.

4.7 Appropriate marketing activities are discussed with client.

4.8 Agency services, fees and charges are discussed with the client.

4.9 Client is given time and space to evaluate agency services while time is used to maximum advantage to promote agency.

4.10 Client questions are answered fully and honestly.

4.11 Effective interpersonal communication skills are used to respond to client questions and concerns.

5 5.1 5.2 5.3 5.4 5.5 5.6

6 6.1 6.2 6.3

Finalise property listing.

Client agreement to list property with agency is confirmed.

Statutory and agency listing documentation is explained to client in line with agency practice and legislative requirements.

Agency fees and conditions are negotiated and agreed with the client.

Effective communication skills and negotiation techniques are used to respond to client questions and concerns.

Property details are recorded accurately and correctly.

Listing documentation is completed in line with agency practice and legislative requirements.

Record and act on instructions.

Client instructions are recorded to meet legislative requirements and agency record-keeping requirements.

Business documents are produced to reflect advice to relevant parties involved in the listing transaction.

Information to clients is provided to reflect progress made within the terms of the agreement.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

CPPDSM4012A List property for sale This unit of competency specifies the outcomes required to list all types of property and businesses for sale. It includes prospecting for listings, establishing client.

Requirements, planning and delivering property listing presentations, finalising listings for the sale of property, and recording and acting on client instructions.

This unit does not address listings for property management or the actual marketing or sale of the property under an agency contract.

Application of unit This unit of competency supports the work of licensed real estate agents and real estate representatives involved in the listing of all types of property and businesses for sale.

ELEMENT PERFORMANCE CRITERIA 1 1.1 1.2 1.3 1.4

2 2.1 2.2 2.3 2.4

3 3.1 3.2

Prospect for property listings.

Business development area for property listings is identified in line with agency practice.

Key sources of property listings are identified in line with agency practice and legislative requirements.

Strategies for attracting property listings are implemented in line with agency practice and legislative requirements.

Business and personal referral networks are established and maintained in order to attract property listings.

Establish client requirements.

Enquiries from potential clients regarding property listings are handled promptly to enable high quality service delivery according to agency practice.

Appropriate rapport is established with potential client.

Client requirements regarding property are clarified and accurately assessed using appropriate interpersonal communication techniques.

Appointment is made with client to discuss property listing in line with agency practice.

Plan property listing presentation.

Preparations are made for property listing presentation in line with agency ractice.

Promotional material and listing kit are prepared to highlight benefits of agent and agency in line with agency practice, ethical standards and legislative requirements.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

4 4.1

Deliver property listing presentation.

Visual inspection of property is conducted to provide client with a realistic range of marketing and selling options in line with agency practice and legislative requirements.

4.2 Key decision makers are identified to ensure that their needs and concerns are met in the listing presentation.

4.3 Market influences likely to affect the property listing are discussed with the client.

4.4 Recommended property improvements, estimated costs and likely influence on property sale and price are discussed with client.

4.5 Property appraisal is provided that includes realistic selling price range.

4.6 Promotional materials, agency listing kit and relevant legal and financial information are used to support the listing presentation.

4.7 Appropriate method of sale and marketing activities are discussed with client.

4.8 Agency services, fees and charges are discussed with the client.

4.9 Client is given time and space to evaluate agency services while time is used to maximum advantage to promote agency.

4.10 Client questions are answered fully and honestly.

4.11 Effective interpersonal communication skills are used to respond to client questions and concerns.

5 5.1 5.2 5.3 5.4 5.5 5.6

6 6.1 6.2 6.3

Prepare and execute agency agreement.

Client agreement to list property with agency is confirmed.

Statutory and agency listing documentation is explained to client in line with gency practice and legislative requirements.

Agency fees and conditions are negotiated and agreed with the client.

Effective communication skills and negotiation techniques are used to respond to client questions and concerns.

Property details are recorded accurately and correctly.

Listing documentation is completed in line with client instructions, agency practice and legislative requirements.

Record and act on instructions.

Client instructions are recorded to meet sales or auctioneering legislative requirements and agency record-keeping requirements.

Business documents are produced to reflect advice to relevant parties involved in the listing transaction.

Information to clients is provided to reflect progress made within the terms of the agreement.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

REFERENCE POINTS Helpful web sites: www.fairtrading.nsw.gov.au Office of Fair Trading – legislation, consumer guides for agency agreements and other consumer guides www.reinsw.com.au Real Estate Institute of New South Wales www.accc.gov.au Australian Competition and Consumer Commission www.reia.com.au Real Estate Institute of Australia www.lpi.nsw.gov.au Land and property information service from NSW Government www.realestate.com.au links to agents, information www.property.com.au information, advice www.domain.com.au advertising and listing information www.retv.com.au advice and information from Foxtel’s Real Estate TV www.abs.gov.au Australian Bureau of Statistics Legislation: Property, Stock and Business Agents Act 2002 and Regulations 2003 (NSW).

Residential Tenancies Act 1987.

Conveyancing (Sale of Land) Act 1919 NSW. Conveyancing Act 1919 and (Sale of Land) Regulations 2005 (NSW).

Crimes Act 1900(Commonwealth).

Privacy Act 1988 (Commonwealth).

Trade Practices Act 1974 (Commonwealth).

Fair Trading Act 1987 (NSW).

Anti-discrimination Act Occupational Health and Safety Act

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

INTRODUCTION Listings are the “stock in trade” of a real estate office. Without a supply of listings of property for sale and/or rental, a real estate agency cannot operate. Therefore, listing property is a vital part of the industry. The more listings you have the more business you can generate.

The agency relationship once established through the agency agreement places fiduciary obligations upon the agent. The agent has a special obligation of trust and responsibility within that relationship. Prior to signing the agency agreement the agent must act with fairness and professionalism in their dealings with prospective clients.

This, of course, means advising the client in relation to methods of sale, rental and marketing or promotion with the client’s best interests at the forefront of the agent’s actions.

An agent must be objective when advising clients and consider the clients interest above that of their own or their agency in any transaction. What is best for the client must come before any other consideration.

All your agency obligations are set out in the Property Stock and Business Agents Act, 2002 and Regulation 2003. All agents must have a thorough knowledge and understanding of this Act and all other legislation that affects them within their real estate work areas.

Establishing Client Motivation Before listing any property you need to establish your client’s motivation. The ‘What’, ‘Why’, ‘How’ and ‘When,’ factors involved in the listing, need to be established between you and your client. How you handle the Listing Presentation depends on the information you gather from these factors. For example; a couple who has just purchased an investment property could be labelled a ‘hot’ landlord prospect. A client who has already purchased another home and is maintaining two mortgages could be a ‘very hot’ potential vendor. Whereas a couple who are thinking of retiring next year and moving interstate might not yet be considered ‘hot’ clients.

The motivation, including the urgency of the timing of the process, will affect both the method of sale or rent and the promotion of the listing. These factors, along with the target market for a listing (which is covered in the unit PRDRE14A Market Property) have a major bearing on the end result. All factors relating to the clients motivation and reason for sale must be considered when establishing “what is” in the client’s best interest.

Remember that knowledge is power. Know everything there is to know about your services, your company, your area, your market and market trends.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

Building Rapport By direct questioning you should establish the client’s motivation and be mindful of their answers to the following: •

Where are they planning to move to?

•

Have they bought elsewhere?

•

Are they selling or leasing the home?

•

What is their time frame?

•

Are they aware of prices of comparative properties in their area?

•

What do they expect from you as their agent?

•

Why are they leaving their home?

•

What are the positive and negative features of the home?

•

What price are they aiming to achieve?

There is a wide range of qualifying questions that you will need to employ to establish their motivation and meet their expectations. At no point do you want to make your client feel uncomfortable with your questioning. All people are different and an astute agent will be aware of the correct tactics to apply to the different personalities you deal with. This is a communication skill that may take time, effort and practice to develop. It is an essential skill for a successful career in the real estate industry.

If you do not build rapport and empathy you will be unlikely to convince the client that you are the person to achieve the desired result for them. If the client feels that you are genuinely interested in doing the best for them and have their interest at heart they will appoint you as their agent.

Some agents believe that the price the client wishes to achieve has to be ascertained before you reveal your estimate of price to the client. This is fine, but you must remember that in the majority of cases, they contacted you as the expert to advise them – not the other way around.

Your research, market, and industry knowledge should have established the basis for your estimate to allow you to competently and confidently advise the client.

Whatever you do, you have to be careful not to antagonise your client by answering all their questions with another question, and not providing them with the information they have sought from you. For example; “how much is my property worth?” answer – “What price where you hoping to achieve?”

Some agents go to great lengths to get the client to say what they want first. It can be a bit like playing a game which, as you know, means there are winners and losers.

In this case, the loser will often be the agent, because their opinion will be based on what the client wants and not necessarily on what the market is saying.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

Listing Presentation This is the stage at which you describe what your agency offers and all details of the marketing strategy. The actual listing presentation will decide whether or not you get the job. It is therefore, something that you need to practice, and perfect.

When presenting information, the visual aspect is a much more powerful tool than the spoken word. Illustrating your services with visual aids and hard copy information will achieve a much better acceptance than just verbalising what you will do.

The information you present to your client should be in the form of either hard copy or lap top presentation. Both methods should contain all the visual aids, handouts and references you need to support your presentation.

All successful agents and agencies use a listing kit which demonstrates in pictorial and written form the sales or rental process and their services to the client. To be competitive in the real estate industry a comprehensive listing kit is a MUST for every agent. Your listing kit also serves as a checklist to ensure you do not overlook any details in your presentation.

Outlined below is a guide to assist you to construct a listing kit: Leasing: • Agency profile.

•

Other properties listed.

•

Client testimonials.

•

Range and success rates of marketing strategies.

•

Local information and past history for leased properties in the area.

•

Agency services for leased properties such as repairs and maintenance, ledgers and reports, interior and exterior design and presentation assistance.

•

Agency agreement for property management services.

•

Advertising schedule.

•

Other agency documents – e.g. customer fact sheet, renting guide.

•

Regulatory publications and handbooks.

Sale: •

Agency profile.

•

Agent profile.

•

Agency agreement. including:

•

Agreed and or estimated sale price.

•

Fees and commissions and notice of commission sharing.

•

Services provided by the agency.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

•

Process for settlement of disputes.

•

Disbursements at settlement.

•

Advertising schedule

•

Agency and statutory documentation.

•

Inclusion of market trends

Alternatively, your office may have developed a ‘proforma’ kit (in line with your agency policies) to assist you at presentations. This may cover similar topics to the outline provided in this unit.

Most offices have their own listing kits which can be enhanced by including the agent’s personal profile to personalise the service aspect of the process.

As previously stated, without rapport, empathy and trust it is difficult to gain the client’s business.

The first rule of listing presentations is “value add”. If you cannot show the client the value you provide then you will not be able to convince them to give you the business or to pay your fees and charges. You must establish the value in the client using your services above that of other agents or agencies. Value does not necessarily have to be monetary as in the cheapest service. It can relate to extra services or knowledge that you provide to achieve the best result.

To set yourself apart from your competition you also need to provide a point of difference. This could be something to do with you personally, your success, your service, marketing, promotion or any part of the process. To provide a point of difference it is necessary to track the market and adapt quickly to change and new ideas. Embracing technological change in communication is one area that can provide an edge over the competition.

You will need to consider the questions that will be asked of you and how to use your research to show the client that your price estimation is accurate, even though another agent may have provided a higher estimate. The agent does not make the market, the buyers or tenants do. Therefore, you need research, information, and conviction to back up your opinion.

The highest estimate of price does not always gain the business. Do not breach the Property Stock and Business Agents Act 2002 (refer to the Commissioner of Fair Trading Guidelines on “Estimate of Selling Price” at www.fairtrading.nsw.gov.au.), by quoting unrealistically high prices to get the business. In many cases, where this has happened in the past, the client ends up dissatisfied with no buyer or tenant and can waste weeks or even months of marketing effort for no result. This is the very reason that the legislation is in place, and you can use this to your advantage by being knowledgeable and acting fairly and professionally.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

Remember that this is a selling process and as such you have to “close” the sale to get the listing (whether the listing is for sale or rental). Ask them for the business and have your agency agreements ready to fill out.

Providing Advice and Options Your responsibility as a listing agent is to guide your client with valid and reliable information when pricing their property.

Negative publicity surrounds agents who are found to be deliberately misguiding the client on the pricing of property. The advice you provide to clients is a reflection of your skill and reputation within the real estate industry. Your reputation is an important key to your success in the real estate industry.

Your client expects you, as a professional, to be able to: Provide a realistic price range after a property inspection and analysis of the market Outline a range of marketing options. You will need to provide the advantages and disadvantages of each method of sale – private treaty, auction and tender. You should be able to guide your client on the most applicable method of sale to attain the highest possible price in the market place Confirm their expectations in writing regarding the terms and conditions of your agency service.

Requirement to substantiate selling price estimates The Commissioner for Fair Trading may now require real estate agents to substantiate that their selling price estimates provided to sellers or buyers, or prospective sellers or buyers, were reasonable. That is, the agent must be able to show that there was some objective basis on which their estimates were based.

Section 74 of the Act provides that the Commissioner (or delegate) may issue Substantiation Notices. These Notices will require the agent to provide evidence of the reasonableness of any estimate of the selling price of residential property in a statement made by the agent; and specify a time for compliance with the notice.

The provision applies to any estimates of selling price, whether the property concerned is to be sold by private treaty or by auction. It applies to statements made orally, in writing, or in advertisements or any promotional material relating to the property.

Estimated Selling Price Guideline for Agents Section 72 of the Property Stock and Business Agents Act 2002 prohibits an agent from making false representations with respect to the agent’s true estimate of the selling price of a property to either a seller or prospective seller of residential property.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

Section 73 prohibits an agent, by any statement made in the course of marketing a property pursuant to an agency agreement for the sale of a residential property, falsely understating the estimated selling price of the property.

The effect of these provisions is to require agents to act reasonably and fairly in their dealings with sellers or prospective sellers of properties and with buyers or prospective buyers of properties.

Section 73 of the Act also contains some substantive considerations that agents need to be aware of which could trigger an offence: • An agent or employee is considered to falsely understate the estimated selling price of residential property if the agent or employee states as his or her estimate of that selling price a price that is less than his or her true estimate of that selling price.

• For the purposes of the section, a statement is considered to be made in the course of marketing residential property if the statement is made: (a) (b)

in an advertisement in respect of the property that is published or caused to be published by an agent, or to a person (orally or in writing) as a prospective purchaser of the property.

Section 75 of the Act extends the provisions of sections 72 and 73 to estimated price range in the same way as it applies to estimated price.

A statement in the agency agreement of the agent’s estimate of the selling price of residential property is evidence for the purposes of these sections of the agent’s true estimate of that selling price. Regulations to the Act require that both an estimated price, and the price at which the property is to be offered for sale, must be recorded in the agency agreement.

The maximum penalty for a breach of the provisions of sections 72 and 73 is 200 penalty units – presently $22,000. The Commissioner for Fair Trading may also take disciplinary action against the agent.

What if the eventual sale price is substantially different from the estimated price?

The price at which a property ultimately sells will be a factor to be considered by Fair Trading in relation to the reasonableness of the agent’s estimate. However, it is not the only factor, and without more it is not determinative of whether an agent’s estimate was fair and reasonable.

The Office of Fair Trading recognises that a significant number of external factors can affect the final selling price. Prevailing economic conditions, interest rate movements, the level of interest in a specific property, the marketing program and method of sale used in a particular case and seasonal factors all play a part in determining the final selling price of a property. But the situation is this: an agent must act fairly and Doc ID: CPPDSM4011A & CPPDSM4012A - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 4 Approved by: CEO P a g e | 15 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\12. CPPDSM4011A\CPPDSM4011A & CPPDSM4012A - Workbook (L) eLearning.docx

___________________________________________________ CPP40307 Certificate IV in Property (Sales)

reasonably in their dealings with buyers and sellers. When estimating a selling price they should do so in a manner that can be substantiated by the agent. An agent must not dishonestly tell a buyer or potential buyer one (lower) price and a seller or potential seller another (higher) price.

Good agents will be able to develop practices that ensure that they make fair estimates of a selling price and will be able to demonstrate what information they relied on to make their estimate. This is good practice for agents and good service for consumers.

The requirement to substantiate selling price estimates – residential property Section 74 of the Act empowers the Commissioner for Fair Trading to require an agent to substantiate an statements made by an agent with respect to the selling price of a property.

The Commissioner may, by a notice in writing, require an agent to provide evidence of the reasonableness of any estimate of the selling price of residential property made by the agent in a statement.

The Act provides a maximum penalty of 200 penalty units – presently $22,000 for failing to comply with such a notice.

Estimates of the selling price in a statement that would be affected by this provision include the following: (a) orally or in writing to a seller or prospective seller of the property, or (b)

in an advertisement in respect of the property that is published or caused to be published by the agent, or

(c)

orally or in writing to a person as a prospective purchaser of the property.

Likely scenarios where an estimated selling price could be given orally would include “open house” inspections; at auctions, prior to the commencement of the auction, and estimates given when an agent is attempting to sign up a prospective vendor to an agency agreement.

Agents need to be particularly alert in relation to the use of price guides in advertisements promoting the auction or sale of residential properties. Careful consideration should be given to the use of the following two styles: Specified Range These advertisements display the anticipated property price as falling within a range, e.g. $600,000 to $650,000.

Non-specific Range These advertisements display the anticipated property price as falling within a low, mid or high range of a fixed dollar amount, e.g. Low $500,000; Mid $500,000, or where the anticipated property price is shown as a fixed dollar amount followed by a plus sign, eg.$550,000+ Doc ID: CPPDSM4011A & CPPDSM4012A - Workbook (L) eLearning Date: 28/03/2018 Developed by: SL Version: 4 Approved by: CEO P a g e | 16 File Location: S:\Learning & Assessment Resources\Real Estate\CPP40307 Certificate IV in Property Services (Real Estate) NSW\Assessment Tools\12. CPPDSM4011A\CPPDSM4011A & CPPDSM4012A - Workbook (L) eLearning.docx

___________________________________________________ CPP40307 Certificate IV in Property (Sales)

Representations such as these are taken to be estimated selling prices for the purposes of the legislation. Therefore, agents must be able to justify any price range if they use this form of advertisement. If a range is used, it must be consistent with the agent’s estimated price recorded in the agency agreement.

What does the Office of Fair Trading require of agents?

When an agent provides an estimated price they must be able to demonstrate that their estimate of the selling price of a property was reasonable in all the circumstances and that they took due regard of those matters that should be included in determining an estimated selling price.

Matters that should be considered when an agent is determining an estimated selling price include: •

Features of the property which would affect the value of the property in the market, such as recreational facilities or special architectural features.

•

Future use of the property (such as zoning, rights of way, redevelopment, resumption by public authorities, historical preservation orders, covenants or restriction of user, development approvals)

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Market demand in the area

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Sales of comparable properties

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Likely level of demand for the particular property

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Recent valuations of the property

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The circumstances of the vendors (are they under pressure to sell, how much time is available to develop a marketing plan, are they limited in terms of the way they wish to exhibit the property or in respect of their desired method of sale)

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Seasonal factors (does demand traditionally fall away or increase at the time of year the property is being marketed)

•

Economic factors (the level of demand for property, whether interest rates on the move, whether the authorities warning about overheated markets).

Agents when determining the estimated selling price of a property should ensure that any information that is relied upon to determine the price is retained in the Sales File for the particular property. Agents should also ensure that any notes they made of their inquiries are also retained. A copy of the sales inspection report should also be retained on the file as it forms part of the agency agreement. This will ensure that if the Commissioner for Fair Trading requires an agent to substantiate the reasonableness of an estimated selling price, they will be able to do so quickly and with confidence.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

Whilst an agent who provides an estimated selling price is responsible for its reasonableness, the licensee-in-charge of the agency is responsible for the supervision of all staff and their conduct. Licensees-in-charge must ensure that they have sufficient management and control mechanisms in place in the office to ensure that agents comply with the requirements of the Act. These provisions are in addition to the general obligation on agents not to engage in misleading or deceptive conduct. Agents should particularly note the requirements of sections 51 and 52 of the Property Stock and Business Agents Act, 2002 which address the publishing of false or misleading advertisements, and misrepresentations by licensees or registered persons.

Agents must also note the requirements placed upon them by the rules of conduct which are prescribed in the schedules to the Property, Stock and Business Agents Regulation 2003. These rules must be observed in the course of the carrying on of business or the exercise of functions under a licence or certificate of registration.

These provisions, and others in the Act and regulations, extend the requirements in relation to estimated price to the sale and purchase process for rural and commercial transactions.

Sources of Listings LEASING Use business and personal referrals to identify listing opportunities: • Buyers.

•

Developers.

•

Owners.

•

Previous clients and customers.

•

Prospective tenants and buyers.

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Tenants.

Identify contacts from existing property management activities such as: • Property advertising.

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Current owners.

•

Referrals and general enquiries.

•

Seminars, forums and industry networking activities.

•

Internal and external sales personnel

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

SALE Use business and personal referrals to identify listing opportunities: • Buyers.

•

Developers.

•

Owners.

•

Previous clients and customers.

•

Prospective tenants and buyers.

•

Tenants.

Identify contacts from existing property management activities such as: • Property advertising.

•

Current owners.

•

Referrals and general enquiries.

•

Seminars, forums and industry networking activities.

•

Internal and external sales personnel.

Secure the Listing This is the final stage of your listing presentation. At this point, fees and charges will be negotiated, and all agency documentation completed. Prior to signing an agency agreement all objections and questions will have been clarified, and the terms and conditions of the agency agreement explained. Remember that legislation dictates that all fees are negotiable so you will need to justify your fee for service to the client.

At this stage once the vendor has signed the agency agreement you will also need to complete a listing sheet which summarises all the details about the property, i.e. address, aspect, size of rooms, pool, etc.

Once you have received a Contract for the Sale of Land, you can start marketing the property and checking your database for existing clients/potential purchasers. For property management, you can check your prospective database and commence with marketing the property.

Ensure that you leave your client with a copy of both the inspection form and the agency agreement. The inspection report and agency agreements will generally be in a combined format.

At the point of securing the listing you will have to ensure that your client has been presented with the approved consumer guide for agency agreements if the agreement is for the sale of residential property. This guide must be provided to the client not more than one (1) month before signing the agreement.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

You must also remember that there is no entitlement to any fees, charges or expenses without a written agency agreement for the services to be provided.

The agency agreement used must comply with any applicable requirements of the Property Stock and Business Agents Act, 2002 and Regulation 2003. A copy must be served on the client within 48 hours of signing the agreement.

You cannot enter into an agency agreement where the land or property is already subject to a sole or exclusive agency agreement with another agency. You are required to ask your prospective client if they do have another agreement in force and warn them that if they do they may have to pay two (2) commissions or fees.

These warnings must be written into all exclusive and sole agency agreements.

There are three (3) types of agency agreements for sale: Exclusive: exclusive to one agent for a set period of time and the client must pay the fee if sold or let within that period. This agreement can be for any period of time but the client has the right to terminate the agreement after 90 days with 30 days written notice.

Sole: sole agency to one agent for a set period of time and the client retains the right to sell themselves without having to pay the fee to the agent.

Open: an agreement to pay the agent a fee if the agent secures a successful buyer or tenant. This agreement usually runs until terminated in writing by either party.

You will need to study your agency agreements so you thoroughly understand them, and can explain them fully to your clients. Managing or leasing agency agreements can adopt the same formula as sales agreements as stated above.

Note: Sample copies of agency agreements are available through the Real Estate Institute of NSW (REINSW) website www.reinsw.com.au and go to products and sales section or they can be purchased as part of a Student Pack from the REINSW. Residential and rural selling agency agreements are subject to a cooling off period that ends at 5.00 p.m. on the next business day after signing. A Saturday is included as a business day in this context.

The client can waiver the cooling off period provided: • •

that they have been given a copy of the consumer guide to agency agreements that they have been given a copy of the agency agreement they are required to sign and

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

•

that they have completed and signed the prescribed Waiver of Cooling Off form prior to signing the agency agreement.

You will need a thorough knowledge of your fees, charges, expenses and promotional programs and options to explain to your client.

The more the process is explained to the client at the beginning, the less problems that will occur later through lack of understanding or explanation.

Be enthusiastic and positive about your involvement by all means, but be realistic based on your market research and knowledge.

The only guarantee that you can make is in relation to your own service. It is the only part of the process over which you have total control.

Follow Up You now need to do what you promised. This failure to deliver is the cause of the most complaints against agents. If you say you will do something, or take some action, then it is an expected part of your service. If you promise the client a glossy office window display and two (2) weeks after you have received the contract they walk past the office and their home is not in the window display then you only have yourself to blame – no matter how busy you are.

Put yourself in the client’s shoes. What would you expect?

Communicate: A letter should be forwarded to your client informing them of the next stage, and your intention to market their property.

It is at this stage that you will commence the marketing plans to reflect the negotiated agreement.

In all areas, you must follow your client instructions and can only act within your written authority, which is contained in the agency agreement.

The expectation is for you to guide the client through to a successful conclusion of the transaction. This requires constant communication and feedback. There is no maximum amount of communication and feedback; but the minimum is to keep the client fully informed every step of the way. You are legally bound by statute to keep your client fully informed, and again this provides an area of common complaints from the public concerning agents.

Being able to take the guesswork out of the equation for your client, and allowing them to make informed decisions will go a long way to ensuring your successful future in the real estate industry.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

RISKS Strategies should be developed for the following risks:

Listing a property for lease: •

Poor customer relations behaviour.

•

Failure of agent to adequately communicate services offered and fees for services.

•

Failure to provide adequate and accurate information regarding effects of market trends on property.

•

Failure to enter into agency agreement and errors in agency agreements.

•

Failure to give informed advice regarding terms and conditions and types of agency agreements.

•

Lack of understanding of legislative and legal requirements for listing properties.

•

Lack of knowledge of proper process for obtaining authority to act.

•

Failure to identify and disclose conflicts of interest and beneficial interests.

•

Failure to provide a list of realistic marketing options.

Listing a property for sale: •

Poor customer relations behaviour.

•

Failure of agent to adequately communicate services offered and fees for services.

•

Failure to provide adequate and accurate information regarding effects of market trends on property.

•

Unethical marketing procedures and use of advertising without understanding relevant legal obligations.

•

Failure to enter into agency agreement and errors in agency agreements.

•

Failure to give informed advice regarding terms and conditions and types of agency agreements.

•

Lack of understanding of legislative and legal requirements for listing properties.

•

Lack of knowledge of proper process for obtaining authority to act.

•

Failure to identify and disclose conflicts of interest and beneficial interests

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

WORKPLACE PROJECT You are required to accompany a supervisor to two market appraisal appointments.

Complete the evaluation sheet attached (Make two (2) copies).

You are required to prepare a sample listing presentation kit of your own, promoting yourself and the agency. (Photocopied sheets will suffice).

Complete a Listing Sheet (one from your office or design your own) on one of your office’s current listings.

Complete a ‘mock’ Agency Agreement and Sales Inspection Report. Presume any details you require.

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

EVALUATION SHEET FOR MARKET APPRAISAL Description of Property:

DATE: ______________

_____________________________________ _____________________________________

Vendors Motivation:

_____________________________________ _____________________________________

Method of Sale Recommended:

____________________________________________

_____________________________________ Services Promoted by the Agent: ____________________________________________ ____________________________________________ Marketing Strategy Suggested:

_____________________________________________ _____________________________________________ _____________________________________________

Time Allowed for Appraisal:

_____________________________________________

Comment on the Outcome of the Appraisal: ___________________________________________________________________________________

____________________________________________________________________ ____________________________________________________________________ What gaps did you identify in the delivery of the Appraisal:

____________________________________________________________________ ____________________________________________________________________ _________________________________________________________________________________ To be completed by your Princpal/Supervisor I hereby confirm that ___________________________ has attended/undertaken the above market appraisal.

Signature: ___________________________________

Date: _____________________

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___________________________________________________ CPP40307 Certificate IV in Property (Sales)

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