Assignment Instructions

I was convicted of benefit fraud when I was 19. That was 15 years ago, and I haven’t had any problems since then. Will this disqualify me?No, the conviction will not automatically disqualify you. Section 37 of part 3 of the act lists individuals who are prohibited from being licensed. Clause (a) states that, a person who has in the past been convicted of a given crime which may have been involved dishonesty within the last ten.

Task 1: Recruitment questions

  1. I am nearly 18 years old. I know you want someone to start work in June, but I don’t turn 18 until October. Would that work?

That would not work as the person is still under the age of 18. Part 3 of the act is on licensing and is entitled how to become licensed. Section 36 explains the entitlement to a license and is clear that one may be licensed to work as a salesperson if he or she has attained 18 years. Secondly, the person may qualify to work if he or she is not prohibited by section 37.

  1. I was convicted of benefit fraud when I was 19. That was 15 years ago, and I haven’t had any problems since then. Will this disqualify me?No, the conviction will not automatically disqualify you. Section 37 of part 3 of the act lists individuals who are prohibited from being licensed. Clause (a) states that, a person who has in the past been convicted of a given crime which may have been involved dishonesty within the last ten years cannot be licensed. Since it has to be 15 years down the line, the person qualifies.
  2. I was made bankrupt 3 years ago because a customer of my importing business got into financial difficulties and couldn’t pay me. But I’m not a bad person! Will this count against me becoming a salesperson? My bankruptcy was discharged in March last year.

Yes, one can apply for a license of one had been made bankrupt. One may not hold an agents license if declared bankrupt and has not been discharged bankrupt. In this light, bankruptcy stated in the act only applies to agency application. This law is stated in section 37(2).

  1. I’ve just completed my salesperson’s course. I want to be a salesperson because my parents both work in real estate. But I don’t have any experience yet. Will this disadvantage me in any way?

No, lack of experience does not disadvantage one for getting a license as a salesperson in real estate. Part 3 of the Act states that one is entitled to be licensed if they have the prescribed qualifications. By accomplishing your course, you have the qualifications of being a salesperson. Provided the person qualifies under qualifications in section 36, he or she is good to go.

  1. My husband got his license a couple of years ago and has done a bit of work in real estate but doesn’t enjoy it. Can his license be transferred into my name?

No, your husband’s license cannot be transferred. Part 3 Section 47 states that a license may not be transferred and may not vest by operation of law in any person other than the person to whom the license was granted. The wife has only one way of acquiring an agency license, and that is by having qualifications stated in section 36.

 

 

Task 2: Office quiz

Question 1.

In Section 14, the Act states that the Authority must make rules for the conduct and the practice of professionals and client care. Rule number 6.4 of the code professionals in real estate has it that a person who has been licensed should avoid the provision of misleading information to clients. The licensee should as well not put undue pressure on clients according to Rule 9.2. By insisting that the person signs the forms with immediate effect, the licensee violated both rules.

Question 2.

Section 152 of the 2018 act has prohibited actions of giving wrong account information to clients for payments. Doing so would attract a fine of $40000 or 2 years imprisonment if not both. Complaints Assessment Committee may receive a complaint from the complainant and the employer before submitting them to the tribunal on discipline for its determination.

Determination of the offences is done before disciplinary action is taken, which may mean suspension of the salesperson’s licensee who offended. (Section 102 of the Act)

Question 3

The code provides Rule 6.3, which prohibits licensed individuals from acting in a way that would bring shame to the real estate industry. The actions of such an employee presented the industry as a fraudulent one. Rule 7.2 obliges licensee to report to the authorities fellow licensees whose actions are misconduct in case of such misconduct. Every licensed individual should act in the best interest of his or her client (Rule 9.1). In this situation, it is evident that the licensee did not act in the client’s best interest. The client was at great risk.

Question 4

If the licensee fails to alert clients on those mentioned above, the individual may be said to have unsatisfactory conduct. Misconduct may also be preferred against the licensee according to 72 of the act. The agent, on the other hand, is in breach of the Act, Section 14. This section is clear on the rules on customer care. Under the code, this particular agent breached rule 6.2, 9.7 and 11.2.

Question 5

A client is entitled to cancel an agreement under section 130. This cancellation should be done by the following day (working) before 5.00 pm. In this case, the client was to cancel the proposal for sale. If there were a prospective sale ongoing, Section 130(4) allows the agent to rely on the agreement. The act provides that such cancellation is by email or even fax. Under Rule 9.11 of the code, the client incurs expenses by simply paying that agent who relied on the agreement following the cancellation. However, the client was obliged to tell the client of the final result of the agreement according to under Rule 10.6(b).

Task 3: What’s gone wrong?

Question 1.

The salesperson’s advice is to at least work under an agent or is an independent contractor. In a situation whereby the salesperson is an independent contractor, he or she becomes directly responsible for his or her actions and omissions as stipulated under section 51(3). However, Section 50 of the Act obliges the salesperson to work under an agent.

Question 2

Jason should write a notice to the registrar following section 67 of the Act. This would be to provide information on the changes in circumstances. In this case, the change would be on the address of work. Section 145 (1) of the Act states that its an offence for one to fail to notify the registration of changes in circumstances as required by section 67 of the Act. Any licensee convicted of committing an offence against the section attracts a fine not exceeding $10,000. In the case where a company commits the offence, the done does not exceed  $50,000.

Question 3

At the expense of the licensee, the client has to be furnished with valuation. Failure to this, the agreement signed can not be effective. If the agent fails to provide necessary information to clients, the agent is in breach of Rule 9.7 of the code. The advice that I could give Joel is that according to section 134, Contracts for acquisition by the licensee or related person may result in their cancellation. According to the section, no licensee should conduct business, knowing that the transaction will benefit a person related to the licensee. The consent of the client would also be effective if the client were provided with a valuation according to section 135. Section 137 provides an understanding of the relationship stated in section 134 and 135, by conducting business on behalf of his sister, the licensee breach both Section 134, 135 and 137. Task 4: Complaints Process

As expected under Rule 12.1, the agency already has an in-house procedure to cater to complaints. Clients may, for this reason, launch formal complaints to the respective personnel who handle such. The most effective dispute resolution will be taken after the assessment of such complaints. In situations where the client launched a complaint against a licensee to the tribunal, the agency should be informed of the same within ten working days. This process is in line with Rule 12. 4. I will let the client know that our office will look into the matter and present it to the disciplinary committee. Section 79 of the Act provide on the procedure of receipt complaints. According to the section, a committee may determine whether to look into a complaint after receiving it. The committee afterwards may decide whether the complaint alleges neither are satisfactory conduct nor misconduct. The committee may also be able to check whether the complaints are made out of bad faith. In case there is a need to continue pasturing the matter, the committee decides to inquire into that particular complaint.

Reference

Real Estate Agents Act 2008, New Zealand Legislation. Retrieved from, http://www.legislation.govt.nz/act/public/2008/0066/latest/DLM1151921.html

 

 

 

 

 

 

 

I was convicted of benefit fraud when I was 19. That was 15 years ago, and I haven’t had any problems since then. Will this disqualify me?No, the conviction will not automatically disqualify you. Section 37 of part 3 of the act lists individuals who are prohibited from being licensed. Clause (a) states that, a person who has in the past been convicted of a given crime which may have been involved dishonesty within the last ten

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