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Task 2: Office quiz
John Canon, the branch manager, runs a monthly training session with the sales team. This month he has set a quiz to check the salespeople’s understanding of the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (the Code).
John drafted some scenarios based on cases from the Complaints Assessment Committee and situations he heard about from other agencies. He asks you to prepare example answers to give to the team at the end of the training session.
Read the following client complaints then state:
· the legislation that applies to the situation (name the section(s) and rules that apply), and
· whether each issue is likely to reflect: - misconduct, or
- unsatisfactory conduct, or
© The Open Polytechnic of New Zealand 2

RES420 Fundamentals of Real Estate/A1
- no further action is required
· whether section 72(a) or section 73(a) is relevant.
1. I didn’t fully understand what the agreement form said because I only started learning English 3 years ago. I told the salesperson that I wanted to discuss it with my sister, who has lived here for a long time and is fluent in English, before signing. He told me he couldn’t wait, and I would miss out unless I signed the agreement form immediately.
2. The salesperson gave me a bank account number to pay the deposit into. After I’d paid, I received a phone call from the office administrator, asking me to pay the deposit. I told her I’d done so, and it was only then that we found out that the salesperson had given me his personal bank account details. I’ve now discovered he’s since left the agency. Fortunately, the agency isn’t asking me to pay the deposit a second time.
3. When we were preparing our offer to purchase the lifestyle block, the salesperson told us not to bother getting a LIM report. He said they were too expensive, and that there wouldn’t be any useful information relating to this property. We did get a LIM and found out that the barn doesn’t have a building consent, and much of the land is part of a flood plain.
4. When we listed our house for sale, the salesperson gave us a booklet from the Real Estate Authority that explained everything. Then she made us read and sign a lengthy agency agreement form, asking us detailed questions about the property. She also told us how we could cancel the agency agreement if necessary. She advised us to check with our lawyer before signing any documents. It all seemed a bit excessive. Doesn’t she trust us to make our own decisions?
5. Saturday morning, after a massive argument with my girlfriend of 2 years, I phoned a local real estate agency and had one of their salespeople list my apartment for sale. I’d decided to quit my job and move to Australia. My girlfriend and I made up on Sunday night, and I rang the salesperson early on Monday morning to advise I wanted to cancel the agency agreement. She said I couldn’t do that, because she had already shown a possible buyer through on Sunday.

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