To help staff address the issues outlined in the case study, what kinds of policies and procedures should the agency have in place?

Scenario

You are the new Principal of an existing agency. The agency has one Sales Manager, an Administration Manager, two Property Managers and four Salespersons. There has been a huge turnover of staff over the last five years as a result of a number of mistakes being made by staff and the number of complaints received by the agency.

After discussions with all the staff and your own research, you have ascertained that there is a general lack of knowledge, particularly around the legislation applying to real estate practice and the application of the Property Occupations Act Regulations 2014, especially in relation to Standard 5, Code of Conduct.

You realise that this lack of knowledge is a risk to both agency and staff.

Property Occupations Regulation 2014 Part 5 Conduct standards Property Occupations Regulation 2014 Part 5 Conduct standards Property Occupations Regulation 2014 Part 5 Conduct standards s 17] (s 20) Is 22] (2) (ii) is unaffected by magnetic interference or another thing that may adversely affect the stored information. Maximum penaltydlpenalty units Before listing property for sale, lease or exchange, a real estate agent or real estate salesperson must take reasonable steps to find out or verify the ownership of the property and property description. 20 Part 5 Conduct standards Division 1 Conduct standards (a) the new agent knows, or should know, the appointment of an existing agent to perform the service is in force; and (b) the client may have to pay the following if the client appoints the new agent to perform the service- (i) a commission under each appointment; (ii) damages for breach of contract under the existing agent's appointment. However, subsection (3) does not apply if, before the client signs the new agent's appointment, the new agent gives the client a written statement that, if the client appoints the new agent to perform the service, the client may have to pay the following- (a) a commission under each appointment; (b) damages for breach of contract under the existing agent's appointment. 17 Finding out or verifying facts material to the sale of property (1) An auctioneer appointed to sell property must take reasonable steps to find out or verify the facts material to the sale that a prudent auctioneer would have found out or verified to avoid error, omission, exaggeration or misrepresentation. (2) The steps must be taken before the auctioneer auctions the property and afterwards as the occasion arises. A real estate agent appointed to sell, purchase, exchange or lease property must take reasonable steps to find out or verify the facts material to the sale, purchase, exchange or lease that a prudent real estate agent would have found out or verified to avoid error, omission, exaggeration or misrepresentation. The steps mentioned in subsection (3) must be taken before the agent lists the property and afterwards as the occasion arises. Conduct standards This part provides conduct standards for licensees and real estate salespersons for section 235 of the Act. Division 2 Property agents and real estate salespersons 22 18 21 Conflict of duty or interest (1) A property agent must not accept an appointment to act, or continue to act, as a property agent for a client if doing so will place the agent's duty or interests in conflict with the client's interests. (2) A real estate salesperson must not act, or continue to act, as a real estate salesperson for a client if doing so will place the salesperson's duty or interests in conflict with the client's interests. 1 Prior appointment of another property agent (1) Before accepting an appointment to act as a property agent for a client to perform a service, the property agent (the new agent) must take reasonable steps to find out whether the client has already appointed another property agent (an existing agent) to act as a property agent to perform the service. If the service mentioned in subsection (1) is to let lots or to collect rent for lots in a building complex, the new agent must also take reasonable steps to find out whether the client has already appointed a residential letting agent (also an existing agent) to let lots or to collect rent for lots in the complex. 3) The new agent must not solicit or accept the appointment if- Property agent to act in accordance with client's instructions (1) A property agent must act in accordance with a client's instructions unless it is contrary to this division or otherwise unlawful to do so. Examples- A property agent must not market, or advertise for sale, purchase, exchange or lease, property at a price, or on terms, different from the terms authorised by the client. 2 A real estate agent must not offer to sell, purchase, exchange or lease on behalf of a client a property on terms different from the terms authorised by the client. 2 However, the price at which a property agent offers to sell or buy property must be in accordance with the client's written instructions. 19 Finding out or verifying property ownership and description (1) Before auctioning property, an auctioneer appointed to sell the property must take reasonable steps to find out or verify the ownership of the property and property description. Is 23] Is 24] (s 26] Division 3 Auctioneersconducting auctions O (b) otherwise facilitate the sale of the property. 23 Division 4 Resident letting agents 26 Registration of bidders and related obligations for auction (1) For each auction an auctioneer conducts at the same place on the same day, the auctioneer must keep a register of each bidder (a registered bidder) registered under this section to bid at the auction. (2) The auctioneer must- (a) inform persons considering bidding in the auction that only bids from registered bidders will be accepted; and (b) before accepting a bid-ensure the bidder is a registered bidder. If the auction is for the sale of property or goods other than livestock, the auctioneer must ensure- (a) the unique bidder identifier assigned to the person can be easily used by the person to bid during the auction; and Example for paragraph (a)- The auctioneer may give the person a card or other thing with the person's unique bidder identifier clearly shown on it. (6) the unique bidder identifier can be easily identified by the auctioneer when the person uses it to make a bid during the auction. The auctioneer must keep the register for at least 5 years after the day of the last entry made in it. Conflict of duty or interest (1) A resident letting agent must not accept an appointment to act, or act, as a resident letting agent for a client if doing so will place the resident letting agent's duty or interests in conflict with the client's interests. Example of a conflict with the client's interest- the agent lets lots in a building complex for a client and the agent owns or has an interest in lots in the complex that the agent also lets 2 However, subsection (1) does not apply if the resident letting agent discloses the conflict to the client in writing before accepting the appointment or acting. 7 (3) 24 27 (4) However, if a bidder has previously been registered by the auctioneer for the sale of property, the bidder's previous registration may be applied to 1 or more subsequent auctions conducted by the auctioneer. The auctioneer may register a person as a bidder only if the person- (a) Gives the auctioneer the person's name and address; and (b) Produces satisfactory evidence of the person's identity to the auctioneer; and Example for paragraph (b)- a driver licence with the person's photo on it (c) Gives the auctioneer the name and address of any other person for whom bids are intended to be made on instructions given by the other person by telephone. The auctioneer must, if satisfied of the person's identity- (a) Assign a unique bidder identifier to the person; and (b) Record the person's name and address, and the unique bidder identifier assigned by the auctioneer to the person, in the register. Bids by seller (1) This section applies in relation to a seller of property offered for sale by auction. (2) If the seller or seller's agent bids for the property when it is offered for sale, the auctioneer must disclose to the other bidders that the bid is made by the seller or seller's agent. (3) If the seller sets a reserve price for the property, the auctioneer must not accept a bid from the seller or seller's agent that is higher than the reserve price. Prior appointment of another agent (1) Before accepting an appointment to let lots or to collect rents for lots in a building complex for a client, a resident letting agent (the new agent) must take reasonable steps to find out whether the client has already appointed another resident letting agent (an existing agent) or a real estate agent (also an existing agent) to let lots or to collect rents for lots in the complex. (2) The new agent must not solicit or accept the appointment if- (a) the new agent knows, or should know, that the appointment of an existing agent to let lots or to collect rents for lots in the building complex is in force; and (b) the client may have to pay the following- (i) a commission under each appointment; (ii) damages for breach of contract under the existing agent's appointment. 25 (5) Disclosure of bidder identity (1) An auctioneer must not disclose the identity of a bidder registered by the auctioneer under section 23 to anyone other than an inspector or a court. (2) However, the auctioneer may disclose a bidder's identity to the seller of the property offered for sale, or the seller's agent, if the disclosure is necessary to- (a) enable the seller or seller's agent to negotiate with the bidder after the property has been passed in, or