Running Head: Questions And Answers

QUESTIONS AND ANSWERS

Questions And Answers

Table of Contents
Question 1........................................................................................................................................3

Question 3........................................................................................................................................3

Question 8........................................................................................................................................3

Question 9........................................................................................................................................4

Question 10......................................................................................................................................4

Question 12......................................................................................................................................4

Question 13......................................................................................................................................5

Question 14......................................................................................................................................5

Question 15......................................................................................................................................5

Question 19......................................................................................................................................6
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Questions And Answers

Question 1

● The agent should not disclose information regarding the client unless it is being

authorized by the client and required by the state law.

● The agent should not put their interest at first due to which conflict of interest may take

place.

● The agent is prohibited from inducing anyone to breach any contract.

● The agent is also not allowed to make false and misleading claims on behalf of the

vendor and bid within the real estate industry.

Question 3

The three types of ownership that can be applied to a real estate agency are as follows:

● Sole ownership: In this kind of ownership an individual is only involved in the purchase

of the particular property

● Tenancy: In this kind of ownership, two more individuals can share the ownership of a

respective property.

● Joint tenants

Question 8

Whenever an agent tries to retrieve information from a particular person, the “Privacy

Act of 1988” comes into play. The agent assures the respective person that their information will

be well protected and due to the presence of a privacy policy within their organization. However,
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Questions And Answers

the “Privacy Act of 1988” states that, the agents of the private sector organizations such as the

real estate industry possess the right to collect information regarding persons. The Act allows the

agent to secure their personal information, as it may prove useful for the prospective

organization in the future.

Question 9

The “Agents Act 2005” allows the respective agents present within the real estate

industry to handle trust monies.

Question 10

A. The agent is allowed to hold monies on behalf of the client. However this includes a little of

the money which is permitted by the client until he or she gains confidence in the agent.

B. Before the agent disburses the money the client is supposed to show the receipt which the

agent has given to the client during payment. It is considered as a record of transaction, which is

essential at the time of disbursement.

Question 12

The “Rules of Conduct” has been inserted in the “Property and stock agents Act of

2002”. This has raised the level of professionalism within the real estate industry. Under this act,

the payment of rental income is being paid by the agent to the property owner at the end of each

month. Apart from this, any gifts and benefits provided by the agent’s employer are strictly

prohibited within the real estate industry as it can cause a conflict of interest. The act also allows
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Questions And Answers

the agent to set up a different trust account for rental and sales money. This is the Rule of

Conduct can be found in schedules 1-3 and 6 of the real estate regulations.

Question 13

In this case, a “breach of contract” takes place when a party belonging to the contract

decides to break the conditions of the agreement. However, according to the laws within the real

estate industry, a breach of contract takes place when one party to the contract fails to fulfil the

agreement or breaks the conditions of the agreements.

Question 14

A. A conflict of interest takes place when the personal and professionalism interests of the agent

are both present during the execution of his or her duties. The conflict of interest also takes

place. The professional interest and personal interest tends to be different with that of the clients.

B. The “Estate Agents Regulations 2008” prohibits the estate agents to act in their best interest

when they are dealing with their respective clients. It is considered as unlawful and improper

execution of his or her duties.

Question 15

At first, the agent should be certified under the “Agent Act 2005”. The agent is

responsible for providing the respective customer options regarding his or her finance. In this,

the agent can also refer the customer to a service provider such as mortgage broker from which

the agent is certainly to get a commission from the broker. First hands out a list of mortgage
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Questions And Answers

brokers to the buyer. After making the recommendation, the real estate is able to provide the

buyer with a broker, solve the financial problems and provide the client with options regarding

the purchase of property. The agent must initiate this process after the buyer has chosen the

property. However when the agent fails to execute his or her responsibilities at the stipulated

time he or she may have to pay a fine of $27,570.

Question 19

Whenever the agent decides to pass on information to the bury the agent is obligated to maintain

some rules and regulations within the real estate industry. The rules may include prohibitions

making false and misleading claims to the buyer. The agent is also not allowed to dummy bid

during the sale of the property it is considered unlawful.