Identify legal and ethical requirements of Property Sales to complete agency work

Identify legal and ethical requirements of Property Sales to complete agency work

Order Description

Please answer the following six questions, each answer MUST be a page in length except for Question 6 which MUST be two pages in length.

Evidence MUST be based on Victorian estate agency law, practice and procedure.

I have uploaded all the relevant legislations to refer to.

Question 1:

A certificate of Title under the Torrens Title system is a document that records a person’s interest and rights affecting their land. It is issued by the Registrar of Titles to the person/s entitled to possession of the land.

A) What are the basic objectives of the Torrens Title System?

B) Discuss what a registered easement, caveat and covenant are and give two (2) examples of each.

Question 2:

Joe is a agent’s representative and has just listed a property for sale. The property has been offered for sale as part of a divorce settlement and both vendors have told you they are desperate to sell the property.
They want $650,000 but have indicated to you they will sell for less. You advertise the property at an asking price of $650,000.

Unfortunately, the market has slowed dramatically and there have been very few buyers coming to the opens. However, a potential new buyer has emerged.
The property is outside her spending limit and she asks you “what will they take?”

Joe wonders whether he should tell the buyer about the vendor’s situation and encourage the buyer to submit a lower offer because he thinks this will ensure a quick sale – just what the vendors have requested and after all, it is only a small drop in his commission!

A) What is the ethical issue here?

B) What are the specific obligations Joe has pursuant to the Estate Agents (Professional Conduct) Regulations under the circumstances?

C) What would you do?

Question 3:

A prospective purchaser seeking to purchase a property for the purpose of development contacts you. He is particularly interested in a three bedroom brick veneer house listed for sale at $595,000 and puts it to you that if you convince the vendor to accept $520,000 for it he will give you 10% of the amount he saves.

You agree to the proposal and thereafter set about convincing the vendor that the $520,000 offer is a great price and that he should accept it. After much negotiation the vendor agrees to sell it at that price. Some months have now passed, settlement has taken place however you have not received your money and the purchaser is not returning your phone calls.

A) Has an offence been committed?

B) If an offence has been committed what Section of which Act would you potentially be in breach of?

C) What are the penalties you and the agency could face?

D) What are the remedies available to the vendor?

Question 4)

Outline the key elements of the provisions of Section 49A, Section 50 and Section 59 of the Estate Agents Act 1980 and Section 27 of the Sale of Land Act 1962.
Can an agent automatically deduct his commission and outgoings from the trust account 28 days after the sale of the property? Please discuss.

Question 5:

Adrian and Anita Jones are selling their home in Donvale and speak to Sue Innes, an agent’s representative, who inspects the property the same afternoon.

She estimates the selling price to be in the range of $500,000 to $580,000 and obtains both of their signatures to an exclusive auction authority. Advertising costs are estimated to be $4000 and Sue requested and received a cheque for this amount in advance which was banked into the Sales Trust account.

At the auction, the property is sold to Marty Robbins, who pays the 10% deposit, signs the contract. Adrian and Anita also sign the contract, which was prepared by their solicitor. The contract shows that they own the property as joint proprietors with Barbara Price (Anita’s mother). Barbara was at the auction and also signed the contract. She did not sign the auction authority because she was overseas at the time. Sue gave Marty a copy of the contract signed by all parties but did not give a copy to the vendors because her copier was out of order.

On the Monday following the auction, Marty contacts Sue to make arrangements to measure the windows for new security shutters. During their conversation Marty casually mentions that his sister Penny Robbins is the property manager at the North Balwyn branch office of the agency.

When the agency receives the advertising account for the auction, it includes a discount of $200. The Officer in Effective control pays the net amount from the advertising moneys received in advance. He banks the money into his office account.

With reference to Sections 47A, 48A, 49A, 53 and 55 of the Estate Agents Act 1980..Discuss all of the potential breaches and penalty points and the impact on Sue if any such offences are proven against her or the agency.

Question 6:

An important element of preparing for the sale of real estate and for a small business is ensuring that the required Statements of disclosure for each are completed.

For the sale of real estate, the Vendors Statement pursuant to Section 32 of the Sale of Land Act is required and for the sale of a small business, a Statement by the Vendor of a small business pursuant to Section 52 of the Estate Agents Act is required.

A) In you own words provide a definition of and the details to be included in a Section 32 Vendors Statement.

B) Name the professional parties that would prepare and sign the relevant statements for:

(i) A three bedroom toenhouse (Section 32)

(ii) A small cafe in Acland Street, St.Kilda (Section 52)

C) What would you do if you discovered an error in either Statement?

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