Part 2 Answer Questions

For this section, you will need to provide answers that are in depth, referenced and supported by additional documentation.

Read each question or scenario carefully and ensure that you answer all of the facets of the question.

Question 1

You are going to deliver a session to your team to familiarise them on how to read a piece of legislation. The session needs to include the following topics:

• Legal framework in Australia and states

• Key components of legislation

• The structure of legislation

• How to access the most recent version of an Act or Regulation

• How to access information in the Act and Regulation

• What is contained in Schedules

• How to find amendments 

• Tips for reading and interpreting legislation

• Common problems with reading legislation

• Consequences for misinterpretation of legislation

Write a draft document that you will refer to when delivering the presentation.

Question 2

Access and analyse two pieces of legislation that may be applicable consumer protection in real estate and prepare a report.

The report should include:

• Full titles of the legislation

• The purpose of the legislation

• The current version of the legislation

• The role of the regulatory body responsible for the legislation

• Two breaches and the penalties for each breach and the value of the penalty points.

Question 3

You have been given the responsibility for ensuring that your team is up to date with all legislation that affects their day to day practice as a real estate agent.

• Develop a list of tasks to achieve this responsibility. 

• The task list should include techniques to access the most current/point-in-time legislation and track changes and amendments.

• As an introduction to your task you will need to give an overview of the importance of agents taking responsibility for their own knowledge and understanding of legislation.

Question 4

Review Case Study 1

Using the case study write a brief report that outlines the mistakes the agent made in reading and interpreting the legislation. 

Refer to the key principles for reading and interpreting legislation.

Question 5

Review Case Study 2

You are very worried about the possible impacts of their behaviour but are unsure whether the agent is acting legally.

• What investigations would you undertake and who could you consult prior to taking any action? 

• Explain the process you used to examine and record your investigations.

• How will the agent’s behaviour impact on the agent, other agents and the agency?

Question 6

Your manager has asked you to induct a new employee. As part of the induction you will need to explain their responsibilities in relation to the trust account. As you have not done this before you decide to prepare a guide to use.

You will need to include:

• The purpose of the real estate trust account including applicable legislation.

• Legislative requirements for operating both a manual and electronic trust accounting system.

• Different types of trust accounts and functions of the software packages

• Requirements for the integrity and security of the trust account eg: passwords and backups, authority

• The role and responsibilities of personnel of the agency in the operation of the trust account.

Question 7 Part 1

Access the Annexure and review each of the documents. Explain the transaction that took place that resulted in the documents below. Who can complete each of the above transactions?

1. Receipt

2. Banking

3. Cashbook

4. Ledger

5. Cheque

Question 7 Part 2

Access the Annexure and review each of the documents. Explain the mistakes that have been made in the following transactions:

1. Receipt

2. Cashbook

3. Ledger

4. Cheque

What needs to be done to address these discrepancies?

Explain the impact that mistakes can have on clients and agency

Question 8

The second part of your trust account induction is the end of month processing. Prepare a guide to assist you in this task.

Include:

• Legislative requirements

• Process that would occur before releasing funds

• Reports or documentation produced

• Personnel responsibilities

Question 9

Research the regulators requirements for auditing real estate trust accounts.

Give an overview of why trust accounts should have both internal and external audits.

Question 10

Review Case Study 3

• Explain the impact of the case study on the agency. 

• What could have been done to prevent this from happening.

Case Studies