Note: All The answers should be For NSW. CPPREP4002 – Access and interpret ethical practice in real Case study 1 You need to set the price for a property you have listed for sale by private treaty...

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Note: All The answers should be For NSW.



CPPREP4002 – Access and interpret ethical practice in real





Case study 1





You need to set the price for a property you have listed for sale by private treaty in all the marketing materials.


The owners have advised they want $ 850,000 and have signed an agency agreement to reflect this price.


Consider the following situations and issues and, referring to the relevant legislation, explain any legal and/or ethical requirements in relation to property sales.



a) In marketing the price, you, as the agent recommend a price range of
Interest over $750,000
to attract more buyer interest.














b) A young couple Mark and Caitlyn Web showed interest in the property and have decided they would like to go ahead with their final offer at $ 837,000.


You have referred the buyers to your colleague who is a mortgage broker to help them with them finance.


As a result of the referral, the mortgage broker pays you a referral fee of 0.03% of the sale price for the business.




















c) You are approached by a potential buyer who wants to buy the property, tear down the house, build two units and lease them.




He offers $750,000 and tells you that if you can get the vendor to accept this price, he will use your agency to manage the properties.




What are the possible consequences if you were to agree to the buyer’s proposal?















d) You are approached by a potential buyer who makes an offer of $750,000. You believe that the house will sell for more so you do not pass on the offer to the vendors. No other buyers come forward to with an interest to make an offer on the property.
















Case study 2




Mr. Smith signed an agreement with agent Thomas Jones of Your Home Real Estate Pty Ltd and appointed the agency to market his home for sale at 24 Cherrytree Lane, Manly for an agreed listed price of $899,000.


At an open home you conducted on the weekend Thomas had several groups attend and asked them to enter their personal details into the open home register which was left on the kitchen bench for prospective buyers to fill in whilst they were viewing the property.


During the open home of the property, Thomas advised three different prospective buyers “It’s listed at $899,000, but I’m pretty sure that an offer of $850,000 will be accepted, because the owner needs a quick sale.”


After following up with all the buyers on Monday morning he also advised them of another property that he had listed and invited them to attend a private inspection he scheduled for the following afternoon.




a) Discuss the legislative and ethical breaches of this scenario referring to the relevant sections of Acts and regulations for your state/territory and commonwealth legislation.

























Answered Same DayAug 09, 2021CPPREP4002Training.Gov.Au

Answer To: Note: All The answers should be For NSW. CPPREP4002 – Access and interpret ethical practice in real ...

Preeti answered on Aug 17 2021
134 Votes
Case Questions
Case study 1
a) For buying and selling property in New South Wales, agents and property owner needs to follow and adhere with several legislations such as R
eal Property Act 1900, Conveyancing Act 1919, Duties Act 1997, Valuation of Land Act 1916, Surveying and Spatial Information Act 2002 and many more. As per the laws, agent is allowed to recommend the price range to the seller for attracting more buyer interest, but not allowed to fix the price as per his choice and comfort. In the given case, it is found that owners have advised that they want $85,000 and signed an agency agreement for reflecting this price
. The agency agreement is bounding in nature, and, agent is not allowed to fluctuate or put high price range.
b) The young couple is not allowed to purchase the price below the reserve price which is kept by the seller at $850,000. Unless otherwise specified, it seems that owners want minimum selling price of $850,000 which is necessary for buyers to follow. Therefore, young couple is not allowed to decide buying property with their final offer at $837,000. They have to pay reserve price, or, in other words, buying price could not be lower than reserve price
.
c) The formulation and implementation of agency agreement do not depend on the fulfilment of certain terms and conditions. The condition put forth by the buyer that he will use the agency for managing the properties, if agent succeeds in getting a vendor at the said price is no longer seems feasible and valid in context of agency agreement. The agency agreement proceeds or executes only when seller and agent agrees on terms and conditions on prior basis. And, if an agent accept the buyer’s proposal of getting vendor to accept the...
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