never b..: given out unless the i::erstifl is nt;so!-u1:eiy ~:nfr\·Vfl i.

1f sufficient ld, :;i~:l in and Sie·H f1U! is required find

uated. All keys SnUHEG t:e. re0::it:T:3ij~ what ilirrIT;::-ni keys are for :-!nd what pr:J~tlijbel:L:ngs tOt:::- they :~ls:_: 1#.::.e.:1
i.(? l::..::coded.
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wtuch records key details by number. "i'here should be record backups kept in different places encase of fire or

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the code of conduct has the agent breached
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had ff:aae the a.-q:;un1f::tir::n that the walkway \-vent ~¥~ththe
land. Because the agent never corre-~ted ner~ she t~lieve-d that her observation "las correct. Could she still
 Real-estate industry overview (ABH 508) January 2003

Both book and Test

Management Agency Risk & consumer Protection ABH 508

Management Agency Risk & consumer Protection ARB 508 Page 75, 76, 77, 78, 79
Question case history 1 Page 2
All keys to be kept in a secure place, a fire resistant cabinet, strongbox or strongroom all lockable. Keys
should not be given out unless signed out & deposited in by agents so as to keep track of key movement. Keys
should never be given out unless the person is absolutely known or sufficient Id, sign in and sign out is
required and dated. All keys should be registered, what different keys are for and what property belongs too,
I they also need to be coded. Two key books should be maintained a register which record key details by
address and a register which records key details by number. There should be record backups kept in different
places encase of fire or robbery. There should be hard copies backup and computer copies for coded keys. It is
always advisable to obtain duplicates of keys. Addresses should never be on keys for security. Never leave
keys in car, when carrying key use a large key holder so as to stop lose of keys. Clients should be encouraged
to change locks after a tenancy.

Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 code of conduct
Question 1 Page 3

If a buyer purchased the land on the bases that they would have their own private walkway, what clauses in
the code of conduct has the agent breached
Clause; 5, 6, 7, 9, 11, 12, 14, 15, 18,22,23.

Management Agency Risk & consumer Protection ARB 508 Page 40 to 62 Code of conduct
Question 2: Page 3

What section of the trade practices act has the agent breached? \
S52, Clause 14 S 53a ~O()NC. Of'¥ '-l.Jv-v,Iji;~

Management Agency Risk & consumer Protection ARB 508 Page 40 to 62 Code of conduct
? Question 3: Page 3

Can a consumer sue the agent for damages given the above information? Circle the correct answer yes/ no
Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 Code of conduct
Question 4
t•
'1 Why?
f!,:Ov~
An agent should have knowledge of the act and conduct and its contents, that's the law. The agent would
know full well there is no ignorance to the law by a professional. The customer and the client have been
misrepresented by professional agent actions. The consumers' solicitor can now study the code of conduct and
the Act which would lead now to a probable cause of action depending on how the solicitor interpretation of
the code of conduct and act as I have set down in the above clauses mentioned in question ] Management
Agency Risk &. consumer Protection ABH 508 manual
.,Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 Code of Conduct
-Question 3: Page 4

Give a reason for your answer ,

t~J'I<,--h ~
Bob Clearly broke the rules of conduct, Common Law and Trade Practices Act, even if Bob did charge a
commission the court system would make B.ob rejy commission back.
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Management Agency Risk & consumer Protection ARB 50S Page 40 to 62 Code of conduct page
Question 4: Page 4

The elderly couple are also advised by their solicitor to prosecute Bob under the Trade Practices Act?
What section/s of the Act might apply in this situation? S51, S52, S53i'1TPA,ineluding-Gemmon I,3w, S144 &
l:4S-E.AMD Act / /'
L!A._<..' Q r"",. r-: IP 1&":'

Management Agency Risk & consumer Protection ARB 508 Page 40 to 62 Code of conduct page
Question 5: Page 5

The couple also wish to recover any loses that they have suffered as a result of Bob's actions, How should
they go about recovering these monies without resulting to costly legal action?

Ask a solicitor for what action they can take and advise through the TPA and The PAMD, Solicitor would be
minium cost for the correct advice in what to take and a witness as to their complaint for future action if need
be. '-l",~ PA I,vO lv~ ~ R:'J.'f'(I,·{,'f',f):{'C::: u;,.~.,-r-'.:A'- t; \'(r~

Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 Code of conduct page
Question 6: Page 5

If the PAMD tribunal found that bob had committed an offence, what' action could they take against him?
(You must be able to mention at least 5 points

Management Agency Risk & consumer Protection ABH 508 Page 40 to 62 Code of conduct page
Case history 4
Our good friend Bob Robsley has just had some buyers around to a house for a second inspection.. He is keen
to see them purchase the property and knows that the owner, if pushed will accept a contract around $185,000,
which is $10,000 less than the instructed list price. Bob suggests to the couple that they make an offer of
$185,000. the couple believe that this is a great deal and sign a contract for Bob to Submit to the client.

Bob is just locking up the office when he is approached be an investor who he had taken to the same property
earlier in the day. The investor also wants to sign a contract on the house. Bob has to think quickly here. He
decides to tell the investor that the house is already sold. Buy doing this, he'll be able to sell him another
property and make two sales!

The seller reluctantly signs the contract with the first couple for $185,000 and Bobs sells the investor another
property.
Everything is going smoothly until the investor meets the previous owners of the subject property at a party.
They discover their mutual history when the investor reveals how disappointed he was at missing out on their
property. He also mentions to them that he was prepared to pay $192,000!

The previous owners seek legal advice and subsequently take action against Bob.
Question 1: Page 6
Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 Code of conduct page
Question 5: Page 3

One of the buyers is wondering whether she can take action against the agent, she never actually saw any
advertising, but in conversations with the agent she had made the assumption that the walkway went with the
land. Because the agent never corrected her, she believed that her observation was correct. Could she still
instigate action against the agent under the trade practices act Circle the correct answer yes or no
Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 Code of conduct
Question 6 Page 3

What section of the trade practices act would apply?

S52, S 53a TPA

Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 Code of Conduct
Question 7: Page 3

How could the agent have avoided this situation? You should be able to mention at least 3 points.

1 Before Blocks where sold agents should study the code of conduct 2 Principle should be screening
advertisements before approval. 3 A complete title search should be carried out. Contact council if need be.
4 Be careful of the way you word your advertisements.
5 8hould have been up front with customers and his (client if any) about making a mistake in the advertising
instead of Keeping silent to customers.

Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 Code of Conduct
Question 1: Page 4

Case history
Bob Robsley is an experienced sales consultant with Good Luck Reality PTY LTD. He is contacted by elderly
interstate owners who are thinking about selling their investment home unit. The owners advised Bob that
they are anxious sellers, as they need the money for medical expenses. However, they have not visited
Queensland for some time and have no idea of values in this area.

Unbeknown to the owners, Bob has a daughter who is looking for a unit in their area. Bob knows that simular
units in this area have sold for $175,000-$180,000. Bob inspects the subject unit, calls the owners and tells
them its worth around $165,000. The owners only paid $142,000 for the unit 3 years ago and consider that the
price is reasonable. They consequently list the unit for sale with Bob. He then sells it to his daughter.

Question 1 Page 4
What offences has Bob committed under the Property Agents and Motor Dealers Act ant the Code of
Conduct?
6 Fiduciary obligations, 7 Honesty, fairness and professionalism TPA 852, 8-SkiH, ea:r@aud diligence S52 &.
~~, 9 Agent to act in client's best interest 852 TPA, 14 Fraudulent or misleading
conduct, Common law, 8 52 TPA, 15 Unconscionable conduct, common law, 851 & 852 TPA, 8145 PAMD
Act, 17 Conflict of duty of interest Common law, 852 TPA, 8144 PAMD Act, 21 Advice About market price
or rent 8 52 TPA, 29 Duty to obtain maximum sale price, 852 TPA, Common law.

Management Agency Risk & consumer Protection ABB 508 Page 40 to 62 Code of Conduct
Question 2: Page 4

Can Bob charge the seller's commission for his service? (Circle the correct answer) Yes/NO
Management Agency Risk & consumer Protection ABH 508 Page 40 to 62 Code of conduct page
Question 5: Page 5

5. The couple also wish to recover any loses that they have suffered as a result of Bob's actions. How should they go
about recovering these monies without resulting to costly legal action?

Seek legal advice as to what action to take.

Lodge a complaint to the real estate firm .The Agent should immediately advise the Client when a breach of the
TP A and Code of Conduct has occurred giving instructions to what they can do.
Contact the OFT or PAMD the Client can lodge a complaint with the Chief Executive claims under $5000 and
possible PAMD tribunal for claims under $200.000 further action through the Claims Tribunal or take Civil
Action - Common Law. The Client can seek mediation through the Queensland of Justice Dispute Resolution
Services or Real Estate Industry Body Mediation Services.

Management Agency Risk & consumer Protection ABH 508 Page 40 to 62 Code of conduct page
Question 6: Page 5

6. If the PAMD tribunal found that bob had committed an offence, what action could they take against him? (You must
be able to mention at least 5 points
1 Disciplinary charges against licences and employees, 2 Order him to stop conduct which is in breach of the Act, 3
Order Monetary penalties, 4 Compensation, 5 Suspension of real estate License, 6 Prevent him holding a licence in the
future and 7 prohibit him from being involved in marketing, promoting or selling residential property in QLD for 5
years, Recommendation for other action if cost amount more that $200,000

Management Agency Risk & consumer Protection ABH 508 Page 40 to 62 Code of conduct page
Case history 4
Our good friend Bob Robsley has just had some buyers around to a house for a second inspection. He is keen to see
them purchase the property and knows that the owner, if pushed will accept a contract around $185,000, which is
$10,000 less than the instructed list price. Bob suggests to the couple that they make an offer of $185,000. The couple
believe that this is a great deal and sign a contract for Bob to Submit to the client.

Bob is just locking up the office when he is approached be an investor who he had taken to the same property earlier in
the day. The investor also wants to sign a contract on the house. Bob has to think quickly here. He decides to tell the
investor that the house is already sold. Buy doing this, he'll be able to sell him another property and make two
sales!

The seller reluctantly signs the contract with the first couple for $185,000 and Bobs sells the investor another
property. Everything is going smoothly until the investor meets the previous owners of the subject property at a party.
They discover their mutual history when the investor reveals how disappointed he was at missing out on their property.
He also mentions to them that he was prepared to pay $192,000!

The previous owners seek legal advice and subsequently take action against Bob.