a)Identify the various business ownership option and servicesoffered by real estate agencies: Real estate agencies work with property – to either buy,sell or manage.

This comprises of residential (houses and apartments),commercial (offices and hotels), rural (farms) and industrial (warehouses andfactories) properties. Different specialized agencies in real estate industryprovides an array of services including: Residential sales, commercial sales,industrial sales, business sales, residential property management, projectmanagement, commercial, industrial and retail management, strata management andcommunity management, stock and station agency, buyer’s agency, on-siteresidential property management, holiday lettings and valuations.Outline of typical organizational structure for a real estate agencyFigure 1:Organizational Structure of a Typical Real Estate AgencyOverview of agency staff roles and responsibilities including admin, agentsand its representative and management. Legislative liabilities andresponsibilities:   The Office of Fair Trading dictates the requirements andeligibility by Property, Stock and Business Agents Regulations 2002 and 2003.The agent who hascompleted their certificate of registration can work as a real estatesalesperson, stock and station salesperson, business salesperson, propertymanager, registered strata manager or registered community manager and aregistered on-site residential property manager. To complete the registration,the person must be at least 16 years of age; fit and proper to hold acertificate of registration (established by a police check); have aqualification required for the class of certificate of registration concernedand; should not be disqualified person.  The support staff in thereal estate agency may or may not require the registration certificatedepending the role they perform or whether they undertake the functions of areal estate agent.

Any staff member that is in contact with the client andcustomers of the agency must be registered. The following are the main rolesand responsibilities of the property management team:  ·        Management – The aim of property management isto attain the best tenant for the property and rent it at a fair price as quicklyas possible. The agent must meet the requirements of landlords as listed inlandlord’s instruction form. The principal is someone who client pays and getinto a written agreement for the use of the services provided by an agency.

This is the Management Agency Agreement. The principal must give the agent anauthority to act on their behalf. The agreement gives the principal andtherefore its agents the right to act and negotiate on behalf the client andenter the client into a contract with third party. This means that agent canfind suitable tenants for the client and negotiate with them. The agent cansign the lease on behalf of the client. The lease is the Tenancy Agreement. Theagent manages the property and tenancy as agreed upon the management agencyagreement.

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·        Principal – overlooks the property managementand sales department by giving agents an authority to act on his behalf. At alltimes agents – both sales & property management and the principal hasfiduciary duties towards each other. At all times the agents will be loyal tothe principal and in return the principal will disclose all the relevantinformation to the transaction and pay agent the commission or fee as agreed·        Property manager – is the main point of contactfor landlord and will be responsible for the operation of a portfolio of properties.The agents and the property owners have duties towards each other that arelisted out in PSBA Act 2002.

These are contractual agreements and each partymust agree to what is stated in the contract. A failure to fulfil duties asagreed on the agency agreement is breach of contractual duties which can leadto penalties. They have a duty towards tenants too. ·        Property officer – is an assistant to a propertymanager. The officer deals with the tenants and tradespeople on a day to daybasis·        Leasing officer – prepares and executes tenancyagreements and manages payments of security deposits and bond at thecommencement of the lease·        Bookkeeper – manages the trust accounttransactions and looks after the financial aspects of property managementdepartment·        Receptionist – first point of contact whensomeone enters/calls the agency. They must direct the inquires to relevant teammembers. They are generally responsible for signing the keys in/out of the keyregister.

    b) Key agencies and industry bodies:  NSW Office of fair trading To safeguard the rights of all consumers and advise thebusiness on ethical conduct and fair practice. This includes: 1.      Licensing and registrations 2.

      Improving the delivery of real estate services 3.      Promoting community awareness of real estateservices 4.      Investigating complaints made my public andresolve disputes 5.      Continuing the development of the regulatoryframework6.      Administering the fair-trading act that affectsthe conduct of real estate agents and practice in NSW Civil and Administrative tribunal It is a low cost, accessible and an independentdecision-making body which is like court that resolves the issues betweenlandlords and tenants or managing agent and tenants that cannot be solved bythe agent. It manages the complaints quickly and efficiently.  Rental Bond Board Agents are obliged to deposit all the rental bonds withrental bond board which is administered by the office of fair trading. RentalBond board holds these bonds as security and are kept safely.

No interest ispaid for the amount to tenants but is retained by OFT to fund state educationprograms. The bond is refunded to the tenants once they move out in full amountif no claims are made.Real Estate Institute of NSW (REINSW)It was established in 1910 to protect the interests of thosewho are directly involved, represent and support the real estate industry.

Allthe members are bound by a code of conduct which administers the relationshipwith their clients, customers and other members. Once the agency is a member,all the employees automatically are bound by the code. It has 1500 members adoffers various services including agency practice support, research and policy,commercial benefits, education and training amongst others. The members canjoin their numerous chapters and be a part of their regular meetings thatdiscuss important issues such as new legislation, complaints etc. c) Legislative Requirements Part 2: d) Ethical and professional conduct standards·        The Property, Stock and Business Agents Act 2002,Regulations and Rules of Conduct, Standard business practices and operatingprocedures and Consumer Protection Legislation outlines the ethical conduct forreal estate agents.

Its main objective was to encourage high standard ofprofessionalism and ethical standard of practice when dealing with clients,consumers and other stakeholders. There are 19 core rules that apply to allcertificate and license holders. It includes:·        Rules 1-5: Fiduciary obligations arising as anagent to ensure that the relationship between principal & agent and agent &client is based on good faith, trust, loyalty, use reasonable skill anddiligence and an acceptable standard of behavior. It should be free from anyharassment and harsh or unconscionable conduct·        Rules 6-9: Agents must always deal in the bestinterest of client and should be free from any conflict of interest. Agentsmust comply by all contractual duties and obligations including duty to followinstruction, act in the best interest of client, act in person, keepconfidentiality and respect the client’s monies.

  ·        Rules 10-13: Licensee must ensure that allemployees are compliant. Agents must not be of any transaction where there is aconflict of interest. The agent cannot have any commercial relation with theservice provider for referrals. The service provider must be independent of theagent. The agent must not recommend principal or any prospect engage theservices of a solicitor or licensed conveyancers if the agent knows that theymight be acting for the other party to the agreement concerned. Exception, whenno other solicitor is available.

In such a scenario, the agent must disclosethe information to the principal and prospect that the solicitor or conveyancerwill be acting for the other party. ·        Rules 14-19: Agents must not offer any gifts ormonetary or other benefit to any person to carry out the duties of an agent.Agents must not be involved in false advertisements or representation aboutacts or regulations. Agents must provide a copy of signed documents and must becompliant always. Failure to comply to the requirements can lead to a penaltyof up to $11,000. e) Client Service StandardsStrategies: f) Risk Management Risk management is an essential part of the real estatebusiness. Risk is defined as an potential threat that have an impact on theobjectives of the business.

It can be measured in terms of possibility andconsequences. All stakeholders of the agency will or have the potential to beaffected by the risk. No one is immune and thus everyone, collectively orindividually must take steps to mitigate the risks. Neglecting to assess,manage and monitor risks may lead to breaches of relevant act, loss of revenueand reputation, lawsuit, penalties and increased insurance premiums.

Risk management is a 4-fold process: a)      Identification of risk – What are the potentialrisks? This can be done by brainstorming, use of checklists, directobservations, analyzing work structure, conducting surveys and hypotheticalsituation analyses. b)     Risk Analysis – How will the risk affect thebusiness? How likely is the potential threat to happen and what can be severityof it? c)      Control of risks – Can the risks be controlledor mitigated? Can the chances of risk be reduced? Can the consequences becontrolled?d)     Monitoring risks – Re-evaluating existing risksand building awareness of new potential risks. Risks can be minimized and reduced if the agency iscompliant of all the acts and legislations that are laid out. The agency mustinvest in continuous training programs and updating the team with new andupdated legislations. Another way to minimize risks is by having standardpolicies, procedures and practices that reduces the chances of error. No.

Type of risk Minimizing risk Monitoring 1.         Unethical behavior The principal or the person in charge must be able to identify ethical behavior. Training to the team for ethical behavior and professional conduct must be imparted. Brochures of the rules of conduct must be easily available to each team member. Periodic analysis Feedback from clients and consumers   2.         Failure of ensure that documentations are accurately prepared Having a set step-by-step procedure to ensure that documents are prepare accurately. A checklist of all the documents must be provided to the team members to ensure that all the documents are attached and recorded correctly. A training session must be conducted at regular intervals.

Internal audit to check if documents are accurately prepared and recorded correctly. Having a reporting hierarchy.             3.         Inadequate key security Understanding how is it inadequate? Is the key cabinet not safe? Or there are some unauthorized personnel who have access to the keys? If so, the keys should ne stored in a fire proof cabinet and only those who are concerned must have access to it. The new staff must not have an access until confidence and trust is gained. Training the team about key management Monitoring key register    a)Identify the various business ownership option and servicesoffered by real estate agencies: Real estate agencies work with property – to either buy,sell or manage. This comprises of residential (houses and apartments),commercial (offices and hotels), rural (farms) and industrial (warehouses andfactories) properties.

Different specialized agencies in real estate industryprovides an array of services including: Residential sales, commercial sales,industrial sales, business sales, residential property management, projectmanagement, commercial, industrial and retail management, strata management andcommunity management, stock and station agency, buyer’s agency, on-siteresidential property management, holiday lettings and valuations.Outline of typical organizational structure for a real estate agencyFigure 1:Organizational Structure of a Typical Real Estate AgencyOverview of agency staff roles and responsibilities including admin, agentsand its representative and management. Legislative liabilities andresponsibilities:   The Office of Fair Trading dictates the requirements andeligibility by Property, Stock and Business Agents Regulations 2002 and 2003.The agent who hascompleted their certificate of registration can work as a real estatesalesperson, stock and station salesperson, business salesperson, propertymanager, registered strata manager or registered community manager and aregistered on-site residential property manager.

To complete the registration,the person must be at least 16 years of age; fit and proper to hold acertificate of registration (established by a police check); have aqualification required for the class of certificate of registration concernedand; should not be disqualified person.  The support staff in thereal estate agency may or may not require the registration certificatedepending the role they perform or whether they undertake the functions of areal estate agent. Any staff member that is in contact with the client andcustomers of the agency must be registered.

The following are the main rolesand responsibilities of the property management team:  ·        Management – The aim of property management isto attain the best tenant for the property and rent it at a fair price as quicklyas possible. The agent must meet the requirements of landlords as listed inlandlord’s instruction form. The principal is someone who client pays and getinto a written agreement for the use of the services provided by an agency.This is the Management Agency Agreement. The principal must give the agent anauthority to act on their behalf. The agreement gives the principal andtherefore its agents the right to act and negotiate on behalf the client andenter the client into a contract with third party. This means that agent canfind suitable tenants for the client and negotiate with them. The agent cansign the lease on behalf of the client.

The lease is the Tenancy Agreement. Theagent manages the property and tenancy as agreed upon the management agencyagreement. ·        Principal – overlooks the property managementand sales department by giving agents an authority to act on his behalf. At alltimes agents – both sales & property management and the principal hasfiduciary duties towards each other. At all times the agents will be loyal tothe principal and in return the principal will disclose all the relevantinformation to the transaction and pay agent the commission or fee as agreed·        Property manager – is the main point of contactfor landlord and will be responsible for the operation of a portfolio of properties.The agents and the property owners have duties towards each other that arelisted out in PSBA Act 2002. These are contractual agreements and each partymust agree to what is stated in the contract. A failure to fulfil duties asagreed on the agency agreement is breach of contractual duties which can leadto penalties.

They have a duty towards tenants too. ·        Property officer – is an assistant to a propertymanager. The officer deals with the tenants and tradespeople on a day to daybasis·        Leasing officer – prepares and executes tenancyagreements and manages payments of security deposits and bond at thecommencement of the lease·        Bookkeeper – manages the trust accounttransactions and looks after the financial aspects of property managementdepartment·        Receptionist – first point of contact whensomeone enters/calls the agency.

They must direct the inquires to relevant teammembers. They are generally responsible for signing the keys in/out of the keyregister.     b) Key agencies and industry bodies:  NSW Office of fair trading To safeguard the rights of all consumers and advise thebusiness on ethical conduct and fair practice. This includes: 1.      Licensing and registrations 2.      Improving the delivery of real estate services 3.      Promoting community awareness of real estateservices 4.      Investigating complaints made my public andresolve disputes 5.

      Continuing the development of the regulatoryframework6.      Administering the fair-trading act that affectsthe conduct of real estate agents and practice in NSW Civil and Administrative tribunal It is a low cost, accessible and an independentdecision-making body which is like court that resolves the issues betweenlandlords and tenants or managing agent and tenants that cannot be solved bythe agent. It manages the complaints quickly and efficiently.

  Rental Bond Board Agents are obliged to deposit all the rental bonds withrental bond board which is administered by the office of fair trading. RentalBond board holds these bonds as security and are kept safely. No interest ispaid for the amount to tenants but is retained by OFT to fund state educationprograms. The bond is refunded to the tenants once they move out in full amountif no claims are made.Real Estate Institute of NSW (REINSW)It was established in 1910 to protect the interests of thosewho are directly involved, represent and support the real estate industry. Allthe members are bound by a code of conduct which administers the relationshipwith their clients, customers and other members.

Once the agency is a member,all the employees automatically are bound by the code. It has 1500 members adoffers various services including agency practice support, research and policy,commercial benefits, education and training amongst others. The members canjoin their numerous chapters and be a part of their regular meetings thatdiscuss important issues such as new legislation, complaints etc. c) Legislative Requirements Part 2: d) Ethical and professional conduct standards·        The Property, Stock and Business Agents Act 2002,Regulations and Rules of Conduct, Standard business practices and operatingprocedures and Consumer Protection Legislation outlines the ethical conduct forreal estate agents. Its main objective was to encourage high standard ofprofessionalism and ethical standard of practice when dealing with clients,consumers and other stakeholders. There are 19 core rules that apply to allcertificate and license holders.

It includes:·        Rules 1-5: Fiduciary obligations arising as anagent to ensure that the relationship between principal & agent and agent is based on good faith, trust, loyalty, use reasonable skill anddiligence and an acceptable standard of behavior. It should be free from anyharassment and harsh or unconscionable conduct·        Rules 6-9: Agents must always deal in the bestinterest of client and should be free from any conflict of interest. Agentsmust comply by all contractual duties and obligations including duty to followinstruction, act in the best interest of client, act in person, keepconfidentiality and respect the client’s monies.  ·        Rules 10-13: Licensee must ensure that allemployees are compliant. Agents must not be of any transaction where there is aconflict of interest.

The agent cannot have any commercial relation with theservice provider for referrals. The service provider must be independent of theagent. The agent must not recommend principal or any prospect engage theservices of a solicitor or licensed conveyancers if the agent knows that theymight be acting for the other party to the agreement concerned. Exception, whenno other solicitor is available. In such a scenario, the agent must disclosethe information to the principal and prospect that the solicitor or conveyancerwill be acting for the other party. ·        Rules 14-19: Agents must not offer any gifts ormonetary or other benefit to any person to carry out the duties of an agent.Agents must not be involved in false advertisements or representation aboutacts or regulations. Agents must provide a copy of signed documents and must becompliant always.

Failure to comply to the requirements can lead to a penaltyof up to $11,000. e) Client Service StandardsStrategies: f) Risk Management Risk management is an essential part of the real estatebusiness. Risk is defined as an potential threat that have an impact on theobjectives of the business. It can be measured in terms of possibility andconsequences.

All stakeholders of the agency will or have the potential to beaffected by the risk. No one is immune and thus everyone, collectively orindividually must take steps to mitigate the risks. Neglecting to assess,manage and monitor risks may lead to breaches of relevant act, loss of revenueand reputation, lawsuit, penalties and increased insurance premiums. Risk management is a 4-fold process: a)      Identification of risk – What are the potentialrisks? This can be done by brainstorming, use of checklists, directobservations, analyzing work structure, conducting surveys and hypotheticalsituation analyses. b)     Risk Analysis – How will the risk affect thebusiness? How likely is the potential threat to happen and what can be severityof it? c)      Control of risks – Can the risks be controlledor mitigated? Can the chances of risk be reduced? Can the consequences becontrolled?d)     Monitoring risks – Re-evaluating existing risksand building awareness of new potential risks. Risks can be minimized and reduced if the agency iscompliant of all the acts and legislations that are laid out. The agency mustinvest in continuous training programs and updating the team with new andupdated legislations.

Another way to minimize risks is by having standardpolicies, procedures and practices that reduces the chances of error. No. Type of risk Minimizing risk Monitoring 1.

         Unethical behavior The principal or the person in charge must be able to identify ethical behavior. Training to the team for ethical behavior and professional conduct must be imparted. Brochures of the rules of conduct must be easily available to each team member. Periodic analysis Feedback from clients and consumers   2.         Failure of ensure that documentations are accurately prepared Having a set step-by-step procedure to ensure that documents are prepare accurately. A checklist of all the documents must be provided to the team members to ensure that all the documents are attached and recorded correctly.

A training session must be conducted at regular intervals. Internal audit to check if documents are accurately prepared and recorded correctly. Having a reporting hierarchy.

            3.         Inadequate key security Understanding how is it inadequate? Is the key cabinet not safe? Or there are some unauthorized personnel who have access to the keys? If so, the keys should ne stored in a fire proof cabinet and only those who are concerned must have access to it. The new staff must not have an access until confidence and trust is gained. Training the team about key management Monitoring key register