RES420: You have Accepted a Position as the Training Coordinator at Ferngully Realty Limited: Fundamentals of Real Estate Assignment, OP, New Zealand

Assignment Scenario

For the purpose of these tasks, you have accepted a position as the Training Coordinator at Ferngully Realty Limited. Your role is to ensure both the existing sales team and any new salespeople joining the team are up to date with their verifiable and non-verifiable training and any relevant changes to legislation. Also, you must ensure that everyone is familiar with, and consistently adhering to their responsibilities and obligations under the REA Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code).

Task 1 Recruitment and FAQs

Your first duty is to help update the agency’s website page for ‘Frequently Asked Questions’ (FAQs). The Branch Manager, Jane Kato, has recently been receiving a high volume of enquiry from members of the public considering a career in the real estate industry. She is hoping to eliminate some of the repetitive questions getting directed her way and will also use the questions and responses as part of the training sessions for the sales team.

Jane has asked you to outline and explain the answer to the following questions that relate to licensing issues referencing, the relevant section(s) and any sub-section(s) of the Real Estate Agents Act 2008 that apply.

i. I want to have a career in real estate. Can I apply to be a salesperson as soon as I finish school? I would have just turned 18

ii. I had my real estate licence cancelled four years ago because I did not complete my verifiable training. I didn’t mind at the time as I was going to travel overseas, but now that I am home I think I will get back into the
industry. Can I just re-apply for my licence?

iii. I am currently working as a conveyancing lawyer and I would like to also become a licensed real estate salesperson. I think the two professions will complement each other nicely and allow me to grow my business. Is it
possible to become a licensed salesperson and still practise as a lawyer?

iv. I have just completed my salesperson’s course and want to become a Branch Manager. My goal is to work as a salesperson for a maximum of two years and then apply for any Branch Manager positions that come available. Is it likely I would be considered if I have only been a salesperson for two years? I have had eight years’ experience managing a large telemarketing company.

v. My wife is looking at taking maternity leave for 12 months and won’t be using her real estate (salesperson) licence. Can I have it transferred into my name so I can manage the business for her, and then transfer it back into her name when she returns to work? I have completed my salesperson’s certificate about six years ago but never applied for a licence. I thought about applying for my own licence, but I would prefer to just use my wife’s licence as I am not really interested in a long-term career in real estate.

Task 2: Questions for Staff Training Sessions

The branch Manager, Jane, has asked you to help her prepare some scenarios that she can use in her weekly meetings as on-going training for her sales team. She has recently overheard some interesting discussions in the office between the sales team and thinks it’s time to upskill and remind everyone of their duties and obligations under the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code).

Jane has drafted the following scenarios based on complaints and positive feedback she has experienced during her career. She would like you to prepare the example answers so she can include them in the upcoming training sessions.

Read the following scenarios, then:

• State the legislation that applies to the situation (name the section(s) of the Act and rules of the code that have been breached, or that have been complied with), and
• Identify whether each issue is likely to reflect:
  − misconduct, or
  − unsatisfactory conduct, or
  − no further action is required.
  (if misconduct or unsatisfactory conduct apply, also identify the section and subsections that apply)

Complaints:

i. We decided to sell our property without a price, ‘by negotiation’. The
salesperson knew that our price expectation was upwards of $950,000 but he
knowingly allowed a website listing to indicate a price range starting at
$750,000. We thought that was very misleading for the purchasers who were
wanting to make offers and very frustrating for us as the offers we received
were well under our expected sale price.

Task

Identify three rules from the Code that are relevant:

• Justify whether misconduct or unsatisfactory conduct or no further
  action applies (if unsatisfactory or misconduct apply, then identify the
  section and any subsections that relate).

ii. We had been searching for property in Ferngully for months when we got a
call from a salesperson to say he had just listed a property that would be
perfect for us. He said that we would have to be quick as it was going to be
advertised on his agency's website in a few days and that we should view it
quickly and make an offer if we liked it. He explained that we couldn’t view
inside yet, but we could take a drive past and look from the street. He also
sent us an email with all the property description and information. We raced
around to view and it was exactly what we had been looking for. We rang the
salesperson back and told him we were super keen and wanted to view as
soon as possible so that we could make an offer. A few hours later he
returned our call to say the owners had changed their mind and didn’t want to
sell. It turned out that he didn’t even have a signed agency agreement in place.

Task

•  Identify one section from the Act and three rules from the Code that are
  relevant.
• Justify whether misconduct or unsatisfactory conduct or no further
  action applies (if unsatisfactory or misconduct apply, identify the
  section and any subsections that relate

iii. I recently listed my house for sale with a local agency. The salesperson told
me that he could get at least $700,000 which sounded like a very good price,
so I signed an agency agreement and put the house on the market. When my
son saw my house for sale at $700,000, he said I was selling far too cheaply
and asked to see a copy of the market appraisal. I hadn’t been given one of
those, or anything else for that matter. I don’t even have a copy of the agency
agreement I signed. The salesperson did say he would get some paperwork to
me at a later stage as he was in a hurry to get to his next appointment, but
that was about a week ago. I have since found out from another agency that
my property is worth at least $800,000 comparing it to other recent sales in
my neighbourhood.

Task

• Identify two sections from the Act and three rules from the Code that
  are relevant.
• Justify whether misconduct or unsatisfactory conduct or no further
  action applies (if unsatisfactory or misconduct apply, identify the
  section and any subsections that relate).

iv. We recently made an offer to purchase our first home. My husband and I were very excited but very nervous that we would make a bad choice. The
salesperson made us take our time with the viewing and suggested we had a
second look. We loved it and wanted to make an offer straight away. He even
gave us a little booklet to read about buying property and we had to sign to
say we had received it. He pointed out some rotten boards in the deck and
recommended that we got a building inspection and a LIM report. He also
explained that the owners wanted us to know that the neighbours were going
to build a treehouse by the back fence for their children and we would be able
to see it from the BBQ area. After he went through the entire sale and
purchase agreement, he then asked us to contact our lawyer before we signed
it. What a mission! When our offer was accepted the salesperson then gave
us a deposit slip with details so that we could pay our deposit into his
agency’s trust account. Super excited, we move in three weeks.

Task

• Identify two sections from the Act and three rules from the Code that
  are relevant.
• Justify whether misconduct or unsatisfactory conduct or no further
  the action applies (if unsatisfactory or misconduct apply, identify the
  section and any subsections that relate).

v. We purchased our dream home recently and within a few days of moving in,
the neighbours told us that a developer had purchased the adjacent land and
was preparing to start a residential subdivision of 23 homes. He also had
resource consent in place to remove the native bush from the back boundary.
Not only are we going to be subject to a substantially long period of building
works, dust and noise, but we are also going to lose the privacy which was
the main reason we purchased this home. The neighbours also told us that
the previous owners of the property were the salesperson’s parents. The
neighbours appeared very surprised when we told them we had no idea of
this either, as they said everyone knew why they were selling, especially their
son.
Task

• Identify two sections from the Act and three rules from the Code that
  are relevant.
• Justify whether misconduct or unsatisfactory conduct, or no further
  action applies (if unsatisfactory or misconduct apply, identify the
  section and any subsections that relate).

Task 3: What’s gone wrong?

Respond to the following questions by applying the appropriate legislation.
(Use up to 150 words for each answer in Task 3.)

i. You are looking at the office advertisements in the local newspaper when
you notice that a ‘For Sale’ property advertisement placed by the new
salesperson Sydney, was missing some very important information.
Ferngully Realty Limited, Licensed under the Real Estate Agents Act 2008 is
not showing anywhere on the advert. As the training co-ordinator you need
to address this straight away to make sure it doesn’t happen again.

Task

What advice would you give in this scenario? Include reference to the
appropriate section and subsections of the Real Estate Agents Act 2008 to
justify your answer.

ii. You are discussing the importance of ‘renewal of licence’ in one of your
training sessions when a salesperson, Brad, who is new to your office,
suddenly realises his licence is about to expire, and he didn’t receive a
renewal notice from the REA, like he did the previous year. Brad has been in
real estate for six years but has recently moved suburbs and changed
agencies to now work for Ferngully Realty.

Task

What advice would you give in this scenario? Explain the reason that the
renewal notice from the REA was not received. Reference two sections from
the Real Estate Agents Act 2008 which relate to justify your advice and
explanation.

iii. You are enjoying your lunch break when you hear a conversation between
two of the salespeople in your office. One of the salespeople, Marc has
recently listed a property for sale that one of the other salespeople, Stevie,
really wants to purchase for herself. Stevie says to Marc, ‘I really want to
purchase the property in Bay Street, but I can’t be bothered declaring
‘conflict of interest’ and following protocol. That’s too hard and I can’t be
bothered organising a valuation and all that stuff you have to do. I think I will
just get a friend to purchase the property in her name using ‘and/or
nominee’, and then I can change it into my name on settlement. Is there any
other interest?’ Marc replies, ‘mmm well no there isn’t any other interest
right now, but do you think that’s a good idea?’

Task

What advice would you give in this scenario? Include reference to the
appropriate sections of the Real Estate Agents Act 2008 and the Real Estate
Agents (Duties of Licensees) Regulations 2009 to justify your answer.

Task 4: Complaints Process

i. The Branch Manager, Jane, has recently had two complaints brought to
the attention that she believes could have been handled better. It appears
not all the sales team are familiar with the complaints process and
therefore not able to correctly advise a complainant, which of course may
make things worse. Jane wants to ensure if any complaints are made to
any of the salespeople, that they will be able to calmly and confidently talk
the complainant through the process of where to find any relevant
information, and what their options are for making a complaint. Jane has
asked you to prepare a handout for the next sales meeting.

Task

The handout must explain:

• how the salespeople at Ferngully Realty are expected to respond to a
  complainant
• how to explain the complaints process to a complainant if needed.
  Refer to the relevant parts of the Code in your handout (use 150 to 250
  words in your answer.