CPPREP4002 Access and Interpret Ethical Practice in Real Estate

Online Help on CPPREP4002 Multiple Choice Questions

ASSESSMENT TASK 1 – Multiple Choice Questions

Please review the questions below and select the correct answer, e.g., a or b

1. Being ethical means:

1. conforming to accepted moral standards
2. having a higher standard than just avoiding a certain behaviour or practice because it is illegal
3. both above

2. Ethics can be applied to:

1. all aspects of business
2. only accounting
3. only customer service
4. signing of documents only

3. When planning ethical practice for your agency, which of the following items should be considered?

1. client protection
2. client focus
3. fairness
4. honesty
5. respect
6. clear communication
7. professional courtesy
8. confidentiality, security of information and privacy
9. all above
10. a, b, and g only

4. In a real estate agency, attention is required to ensure we act with ethical intent. Risk to ethical behaviour can occur when performing which of the following activities?

1. cash handling
2. client interaction and effective communication
3. advertising/marketing
4. client privacy
5. property maintenance
6. workplace safety
7. trust accounting
8. record-keeping
9. listing property for sale or lease
10. all above
11. a, c, and f only

5. When communicating and creating rapport with clients and customers, which of the following should be used and observed during contact?

1. active listening
2. positive body language
3. email etiquette
4. communicating in plain English
5. culturally appropriate communication
6. all above
7. a, b, and d only

6. Is it good business/ethical practice to consider the energy efficiency of the agency office and properties it deals with?

1. only if it is going to cause a risk or harm
2. yes – all businesses should be aware of sustainability and energy efficiency
3. no – this does not relate to businesses

7. Considering sustainability in real estate, what should be considered to engage in responsible practices? (You may choose more than one option)

1. recycling waste in the office
2. water and energy efficiency in managed properties
3. water and energy efficiency in the office
4. lighting and the use of energy efficient bulbs
5. efficiency of office equipment
6. suggest the use of ceiling and wall insulation when building and renovating

8. The property legislation in your state or territory outlines requirements that assist agents in ethical practice. Select which of the following requirements are addressed in the Act.

1. licences and certificates of registration to act in property transactions
2. eligibility, qualifications, and disqualification
3. general conduct of licensees and registered persons
4. agency agreement requirements
5. residential property and rural land sales procedures
6. property auctions procedures
7. trust accounting
8. records management
9. compensation fund
10. complaints and disciplinary action against licence or certificate of registration
11. enforcement of the Act
12. offences and proceedings
13. administration
14. all above
15. a, b, d, e, and f only

9. Special conduct requirements are outlined in the property legislation for your state or territory. Requirements are specified for which of the following areas of property operations?
(You may choose more than one option)

1. general operations in real estate
2. on-site residential and general property management
3. trust accounting
4. stock and station operations
5. business broking
6. agency agreements
7. acting as a buyer’s agents
8. strata property management

10. Considering best and ethical practice policies, should agency principals include knowledge of rules of conduct in induction training for new employees?

1. yes, to reinforce the importance for agents and agency
2. no, because it is included in certificate of registration and licence training
3. it is not really that important

11. Is it possible to avoid all risks to ethical behaviour in a real estate agency?

1. no, some risks need to be reduced, transferred, financed, or retained.
2. yes

12. When dealing with risk management, which groups of people should be considered?

1. people who work in the agency
2. people with a financial interest
3. people who deal with the agency
4. all above

13. A title search or some form of ownership search must be conducted:

1. during the sale of the property
2. before listing or pricing the property
3. before settlement completing the sale of the property

14. Does the Australian Consumer Law address false or misleading representations about sale of land?

1. yes
2. no

15. When collecting personal information from clients/customers, a real estate agent should advise the party…

1. why they need to collect it
2. what happens if the party does not provide the information
3. who the agent will usually disclose the information to
4. that the party can access the information
5. that the party can complain about your handling of information if required
6. all above
7. none of the above – Information can simply be collected as it is required

16. An agent is required to disclose certain information known as material facts about a property that is marketed for sale. Some ‘material facts’ about a property may not be readily apparent, on a property inspection, and could include…

1. whether the property contains asbestos
2. whether the property has a current development approval
3. aspects of the recent history of use or activity in a dwelling
4. crown land affecting vehicular access to a property
5. aspects of the neighbourhood surrounding the property
6. property which has been the scene of a serious crime during the current or previous occupation
7. all above
8. a, c, and e only

17. Where an agent or salesperson has a beneficial interest in the purchase of real estate property, full commission…

1. cannot be charged
2. can be charged, as long as the agent provides the client with a rebate statement under section 49A (4) of the Act
3. can be charged
4. cannot be charged, as a discounted commission is charged

18. Can a sales agent offer advice to clients on specialised areas such as rental income, finance, legal or building structure/defects?

1. no
2. yes, but only if the sales agent holds the appropriate skill or qualification
3. yes, if the agent provides the client with a warning as specified in legislation

19. When an agent publishes or makes statements about a property price, they must comply with requirements, which are…?

1. include a reasonable estimate of a property’s likely selling price in the agency agreement
2. provide evidence to the seller of how the estimated the selling price was determined
3. record in writing statements made about the price while a property is marketed
4. ensure the estimated selling price remains reasonable by revising, notifying parties, and documenting the change
5. all above
6. a and b only

20. Choose the recommended method agents should use to keep clients informed of developments:

1. in writing
2. by phone
3. in person
4. by phone or in person backing up important information in writing

21. Attributes of a good communicator include:

1. being is a good listener
2. reading and using non-verbal signals effectively
3. using words proficiently
4. all above

22. Where or from whom might an agent seek or refer clients to for specialist advice regarding property issues?

1. architects / builders / technical experts
2. bankers and financiers / investment consultants
3. government officials / industry practitioners and industry bodies
4. mentors and coaches
5. health and safety representatives
6. real estate agents / supervisors and colleagues / valuers
7. solicitors
8. all above
9. a, d, and f only

23. Risk management is a good strategy for managing risk related to ethical practice for real estate and property transactions. The steps in the risk management process in order are?

1. analyse, monitor, control
2. identify, analyse, control, monitor
3. monitor, control, identify, analyse
4. all above