Real Estate Industry for Buying and Selling - myassignmenthelp

Question: Discuss about theReal Estate Industry for Buying and Selling. Answer: Real estate refers to the land and property inclusive of the air rights above and underground the land. There are four types of real estate including commercial real estate which encompasses shopping and other commercial centers, residential real estate which comprises of construction and resale homes, industrial real estate which includes all manufacturing buildings and warehouses, and land which comprises of ranches, working farms and vacant land (Amadeo,2017). The real estate industry work involves producing, buying, and selling of property. New buildings and residential homes are constructed. The real estate agents assist people to buy and sell their desired real estate while the sellers agents give guidelines to sellers on the market prices. Buyers agents provide a clear guideline to the potential homeowners on the better deals in the market. To complete agency work, there are legal and ethical requirements attached to property management (Weisleder, 2005). These include the abi lity to communicate with people from different backgrounds and abilities as well as have necessary analytical skills to interpret documents such as a lease, legislation, regulation, and authorization forms. Property sales are required to have the ability to communicate with other people. Have skills necessary to interpret legal forms, have literacy and computing skills as well as the ability to think rationally, and make sound decisions. There are a number of business ownership options as well as services provided by a real estate agency. Among the various forms of business ownership (Ward, 2016), there is corporation which is a business operation that is authorized to act as a single entity and is owned by a board of directors; partnership which is a business operation where two or more people decide to pool their resources together to advance their interests and share profits; and sole trader or proprietorship which is a business entity owned by one person. In addition to property management and sales, the agency provides services such as marketing, sale, and leasing of a range of property types as well as acting as buyers advocacy. A typical organizational structure of an agency can include; an independent agency which acts without supervision from the executive; a franchise group which is authorization from the government or a company to an individual giving them the right to partake a certain task; or a marketin g cooperative consisting of many producers of a similar good working together to sell their products. The roles and responsibilities of agency staff are ensuring that the consumers are protected and are exposed to fair trading, they maintain conducive employment as well as workplace relations fostering equity, provide privacy to their customers, and licensing of real estate. The legislative liabilities and responsibilities include ensuring there are legal measures guarding against discrimination, enhancing consumer protection, and promoting privacy. The NSW office of fair trading upholds integrity to both buyers and consumers as well as providing information on ethical and fair practices. The civil and administrative tribunal is a body that replaced the administrative decisions tribunal of New South Wales and deals with matters of tribunals (Michael, 2014). The rental bond board stores rental bonds paid by a tenant to the landlord for housing occupancy. The real estate institute of New South Wales represents agents, as well as promoting, and responding to members needs. Some legislation in the New South Wales state that bind property sales and management include the common law, equity law, statutory law, and contract law. To maintain up-to-date records of legislation, agencies keep the information in bills, amendment acts and regulations, and consolidated acts. To track amendments, techniques such as the use of margin notes as well as government newsletters. The Estate Agent act is a legislation relating to ethics and professional conduct of estate agents and agents representative. This legislation is aimed at setting expected standards of acting to the agents and representatives when carrying out their everyday activities. Some obligations under this law include: making reasonable inquiries to provide necessary information, act in fair and just manners, complete client work on time and under their jurisdiction, minimize disputes with clients, and have relevant knowledge of laws and legislation (Consumer Affairs Victoria, 2017). There are several strategies in place that implement, monitor and review client service standards. According to Rosier (2013), there are six key steps to quality monitoring. They include: listening to the clients through interactions, adopt all channels necessary for client feedback, involving the clients in day to day activities, help agents improve skills by use of quality monitoring, promote continuous training to agents, and conduct an evaluation to monitor progress. By doing so, Rosier (2013) believes that the agency will remain relevant and competitive in the industry. According to the National Research Council (2005), risks should be identified earlier and plans to mitigate and manage them put in place. Strategies such as viewing past projects, project team participation as well as face to face interactions are essential in identifying risks. Analyzing of the risks can involve methods such as risk screening, impact and probability identification, and Pareto diagrams. Options for minimizing risks include avoiding risk related environments, financing the treatment of the risk, reducing the risk by developing techniques to curb it, and transferring the risk to others. There is various estate agents act in the New South Wales state. According to the Consumer Affairs Victoria (2017), they include; The Act of your state or territory Obligation Maximum penalty for breaching your obligation Section of the Act You must not act as an estate agent unless licensed to do so. 12 months imprisonment or 500 penalty units for individuals and 1000 units for a corporation 12 You must not permit or assist a person who is not licensed to carry on the business of an estate agent. 500 penalty units, permanent or temporary disqualification and cancellation of license 29 You must not publish or authorize the publication of an advertisement that is false or misleading. 25 penalty units 42(4) You must not market a property for sale at a lower price than your estimated selling price (commonly referred to as underquoting) 200 penalty units 47C(2) You must not purchase or indirectly benefit from the purchase of any real estate or business you are engaged to sell 240 penalty units, 2 years imprisonment, or both 55 (1,2) You must keep trust money in a separate and current trust account at an authorized financial institution. 25 penalty units 59 (3) You must not fraudulently use trust money or falsify trust accounts 120 penalty units 59 (1) The table below represents personal skills and knowledge for working in the real estate industry. Skill/knowledge area Rating (1-5) Improvement possible Communication skills (i.e. active listening, building rapport, negotiation skills, communicating with people from different cultures and backgrounds, use of verbal and non-verbal communication such as your own body language, etc.) 4 Involve more people in dialogues to understand them better as well as their desires. Literacy skills (i.e. do you have any issues understanding any documentation, policies, procedures, regulations, and legislation relevant to real estate work, can you fill in forms and other paperwork correctly and without assistance?) 3 Seek further clarification from experts on legislation relating to the real estate industry. Numeracy skills (i.e. are you good at working with numbers do you need any help when it comes to mathematical tasks such as working out budgets, commissions, bond, etc.?) 3 Seek assistant from experts so as to gain more knowledge on working budgets, commissions, and bonds. References Amadeo, K. (2017). Real Estate: What It Is and How It Works. The Balance. Retrieved from https://www.thebalance.com/real-estate-what-it-is-and-how-it-works-3305882 Consumer Affairs Victoria. (2017). Penalties-Estate agents. Retrieved from https://www.consumer.vic.gov.au/licencing-and-registration/estate-agents/penalties Consumer Affairs Victoria. (2017). Professional conduct and obligations-estate agents. Retrieved from https://www.consumer.vic.gov.au/licencing-and-registration/estate-agents/running-your-business/professional-conduct/professional-conduct-and-obligations Michael, P. (2014) Law, and Order beast felled demoted attorney general, Greg Smith. The Australian. News Corp Australia. National Research Council. (2005). The Owners Role in Project Risk Management: Risk Identification and Analysis. National Academics Press. Retrieved from https://www.nap.edu/read/11183/chapter/6 Rosier, S. (2013). Six steps to successful monitoring of your customer service. Retrieved from https://www.mycustomer.com/service/management/six-steps-to-successful-monitoring-of-your-customer-service Ward, S. (2016). Starting a business: Forms of business ownership. The Balance. Retrieved from https://www.thebalance.com/staring-a-business-forms-of-business-ownership-2948118 Weisleder, M (2005). Real Estate Agents, Beware! ECW Press.