Part 1 Short Answer Questions

For this section, you will need to provide answers that directly address the question, you may answer in point form. Ensure that you answer all parts of the question.

Question 1

1. Explain how an agent would find help to read and interpret legislation. 

2. What common mistakes are made when reading parts of legislation?

3. What consequences could there be for misinterpreting legislation? 

Question 2.1

Research state legislation that is applicable to real estate for property sales, property management, licensing and agents conduct. Complete the table

Question 2.2

Explain the role that the regulator has in administering the legislation. Include how they enforce compliance and any penalties that may apply for breaches.

Question 3

Research and list Commonwealth or State legislation that relates to:

1. Privacy

2. Fair trading and consumer protection

3. Anti-discrimination and equal opportunity

4. Work Health and Safety

5. Environment and sustainability

6. Employment and industrial relations

7. Planning and zoning

8. Foreign investment

9. Secret commissions

10. Trust accounting

Question 4

1. Explain the basic principles for reading legislation.

2. Explain the difference between a Rule of Conduct contained in legislation and a Code of Practice.

Question 5

1. Explain your responsibility for understanding and adhering to legislation.

2. Explain techniques used to access current versions of the legislation and the importance of keeping up to date with legislation and ensuring the legislation you are accessing is current/point in time legislation?

3. What techniques would you use to track changes and amendments to legislation?

Question 6

1. Explain the categories of primary sources of law and how the laws are made.

2. Give a definition with an example for:

• Common law

• Contract law

• Statute law

• Equity law

Question 7

1. Research and give an overview of government and industry bodies that provide advice to agents on legislation and legislative changes.

2. How could these bodies assist if you had concerns about the practices of the agency or an agent?

3. Explain the process used to examine and record an investigation of any discrepancies between application of personal and agency practices and legislation.

Question 8

1. Explain the purpose of a real estate trust account and any regulative requirements there are for opening, maintaining and closing a real estate trust account. 

2. What record keeping systems would you implement to establish an accurate and efficient trust account management system?

3. If an agency is using an electronic trust accounting system, what requirements under legislation is there?

4. How would an agency ensure the security and confidentiality of the trust account records? 

Question 9

Research and list the legislative requirements for trust account:

Question 10

1. Legislation requires the trust account to be reconciled at the end of each month. Explain the end of month processing for a real estate trust account.

2. What would happen if the reconciliation did not balance? How would we locate the inaccuracies?

3. Explain the requirements for auditing the trust account.

Question 11

Explain the responsibilities and limitations of the following roles in relation to the trust account:

1. Your role

2. Persons who are making entries into the trust account

3. Persons who are preparing withdrawals from the trust account

4. Licensee in charge / person in effective control

Question 12

1. What are the responsibilities of the licensee or person in effective control if the trust account becomes overdrawn or if they discover some sort of fraud?

2. How will this impact the agency? What could be the outcome of an investigation into fraudulent activities?

3. How will the agency’s clients react to this information?