LU 2.1 Assessment Guide Final

Assessment Guide 1
LU 2.1
Assessment Guide
59097 FETC Real Estate Level 4
Real Estate Legislation
Developed by SOBS
©Services SETA
1/1/2008
Assessment Guide 2
Table of Content
Contents
Table of Content ............................................................................................................... 2
Candidate Information ..................................................................................................... 4
Results Summary & Judgement ........................................................................................ 5
1st Submission ......................................................................................................................................... 5

2nd Submission......................................................................................................................................... 7
3rd Submission ......................................................................................................................................... 9
Assessment Recording Tools – Task 1 .............................................................................. 11
Document Review: Activity 1 - Knowledge Assignment .................................................................... 12

Document Review: Activity 2 – Practical Assignment ....................................................................... 24
Document Review: Activity 1 – Knowledge Assignment ................................................................. 28

Document Review: Activity 2 – Practical Assignment ...................................................................... 31
Document Review: Activity 1 – Knowledge Assignment ................................................................. 43

Document Review: Activity 2 – Practical Assignment ...................................................................... 49
Document Review: Activity 3 – Workplace Evidence....................................................................... 60
Assessment Review Documents ...................................................................................... 61
59097 FETC Real Estate Level 4©Services SETA

Assessment Guide 3
Copy Right
This document was created for Services SETA on behalf of the Real Estate
Chamber.
Services SETA holds copyright on this document and it may not be reproduced in
any form without permission. However, the SAQA qualification outline and the
unit standards are public property and Services SETA is the official certification
body for the real estate qualification.
Please contact Services SETA ETQA Department if you are in any doubt about
what may or may not be copied and/or reproduced.
This tool is only for use by registered assessors with the real estate
qualification on their registered assessment scope.

Assessment Guide 4
Candidate Information
Name
Surname
Telephone Number
Cell Number
Email Address
ID
Physical Address
Postal Address
Area Code:
Employer
Employer Contact Details
Assessor Name
Assessor ID Number
Contact Number
Date of Portfolio Submission
Date of Assessment
Programme Name 59097 FETC Real Estate Level 4 (150 credits)
Learning Unit 2.1
Unit Standard Titles 246733 - Demonstrate knowledge and understanding of the
legislation applicable to real estate practice Level 4 12 Credits
242584 - Demonstrate knowledge and understanding of the
Financial Advisory and Intermediary Services Act 2002 (FAIS)
(Act 37 of 2002) as it impacts on a specific financial services sub-
sector Level 4 2 Credits
242593 - Explain South African money laundering legislation
and the implications for accountable institutions in transacting
with clients Level 4 3 Credits
TOTAL CREDITS 17
Assessor Signature Learning Unit

Assessment Guide 5
Results Summary & Judgement

1st Submission
Assessor Moderator
Assessor Registration ID Moderator Registration ID
Organisation Organisation
Date Date
Source of Evidence Assessment Activity Alignment First Submission

Clearly meets all the Meets some but not all Clearly does not meet
criteria criteria any of the criteria
Task 1 Knowledge Assignment US 246733 SO 1,2,3
Practical Assignment US 246733 SO 4
Task 2 Knowledge Assignment US 242584 SO 1,2
Practical Assignment US 242584 SO 2,3,4
Practical Assignment US 242593 SO 1,2,3,4
Assessment Guide 6
Candidates must Clearly Meet all the Criteria in order to attain an overall “Competent” result.
OVERALL RESUL`T
Competent
Not Yet Competent
Declaration by Candidate
I, …………………………………………………………………….declare that I am satisfied that the feedback given to me by the Assessor was relevant, sufficient and done in a
constructive manner. I accept the assessment decisions and have no further questions relating to this particular assessment process.
Candidate Date
Assessor Date Moderator Date

Assessment Guide 7
2nd Submission
Assessor Moderator
Date Date


Assessment Guide 8
OVERALL RESUL`T
Competent
Not Yet Competent
Candidate Date

Assessment Guide 9
3rd Submission
Assessor Moderator
Date Date


Assessment Guide 10
OVERALL RESUL`T
Competent
Not Yet Competent
Candidate Date

Assessment Guide 11
Assessment Recording Tools – Task 1
Key: Feedback – First Submission

Clearly meets all the criteria  Feedback – Second Submission
Meets some but not all criteria  Feedback – Third Submission
Clearly does not meet any criteria  Moderator comments
The assessor will use these symbols to indicate whether the Feedback will be provided in different colours, for ease of
evidence meets the criteria. reference.

Assessment Guide 12
Document Review: Activity 1 - Knowledge Assignment
Question
Portfolio
U/S S/O Assessment Item Feedback 1st sub 2nd sub 3rd sub
The candidate must complete the KNOWLEDGE ASSIGNMENT in the Candidate Portfolio Workbook,
which meets the following criteria:
Contracts
Define the term contract
UNIT STANDARD 246733
A contract is an agreement reached between at least 2

or more parties, with the intention of creating a legal
obligation with resulting rights and duties. In short, a
1.1 a
SO 1
contract is an agreement which gives rise to a legal

obligation. A mere social appointment between parties
does not constitute a contract between them.
This evidence should include:

 Definition the term contract

Assessment Guide 13
Question
Portfolio
Explain the different concepts of contact law and the

types of contracts found within each of these concepts
with examples.
1.1 b
The evidence should include explanation and examples

SO 1
of:
1. Formal contracts
2. Simple contracts
3. Apparent simple contracts
How is contractual consensus established?
The evidence should include:

 A meeting of the minds
 Corresponding intentions
1.1. c
SO 1
 The Offer
 The acceptance

Assessment Guide 14
Question
Portfolio
Which factors influence contractual consensus?
The evidence should include:

 Error
SO 1
 The Will Theory

1.1d
 Misrepresentation
 Duress
 Undue influence
Contractual Capacity
Discuss the term contractual capacity and the factors
that influence such capacity with examples.
The evidence should include definitions and descriptions

of:
 Contractual capacity
 Mental incapacity
1.2 a
SO 1
 Intoxication
 Prodigals
 Insolvency
 Minors
 Marriage
 Incompetence
 Intoxication

Assessment Guide 15
Question
Portfolio
Termination and Breach of Contract

Explain the circumstances under which a contract can
terminate
Answer should include:

 If the offer was made for a certain time period
only, i.e. until 17h00 on a certain date.

 If the seller rejects the offer, it terminates
automatically on the seller indicating that it is
1.3 a
SO 1
unacceptable.
 If the buyer or seller dies before the offer has
been accepted.
 If the offer is not made to be irrevocable until
acceptance, the buyer can revoke it before the
seller signs his/her acceptance thereof.
Revocation need not be in writing, but must be
brought to the attention of the seller.

Assessment Guide 16
Question
Portfolio
Discuss the concepts of breach of contract within the

Real Estate Industry with examples. Indicate the
damages and remedies for each of these concepts.

1.3 b
 Definition of breach of contract and examples

SO 1
 Types and forms of breach including :- Positive

mal-performance, impossibility of performance,
repudiation, delay by debtor, delay by creditor
 Remedies for the breach
Immovable property contracts of sale

When can a sale of immovable property be defined as a
transaction?.
Answer should include: When

 a specific and identified immovable property is
1.4 a
sold,
SO 2
 by an identified seller to an identified

purchaser,
 for a specific purchase price, and
 agreement is reached pertaining to the
payment terms.

Assessment Guide 17
Question
Portfolio
What do you require to create a binding Agreement of

Sale contract in respect of immovable property?

1. an agreement that is reduced to writing; and
1.4 b
SO 2
2. signed by both the purchaser and seller

thereto; or
3. signed by their agents acting on their written
authority. This could mean a resolution
passed by a company or close corporation or a
trust, or upon a written power of attorney
given by either party to a nominee
Define the following terms with examples:
c.1 - Sole Mandate:
c.2 - Open Mandate:
1.4 c
SO 2

 Definition – Sole mandate
 Definition – Open mandate
 Examples of each term

Assessment Guide 18
Question
Portfolio
Discuss the contracts you as an estate agent will deal

with under the following headings – ensure that your
discussion is no less than 10 sentences.
d.1 Freehold property
d.2 Sectional title schemes
d.3 Fractional ownership
d.4 Shareblock
d.5 Retirement Schemes

 D.1 – Free standing house/structure, outright
ownership, essential terms i.e parties, property,
1.4 d
SO 2
price
 D.2 – Direct ownership of units, share of
“common property”, the sectional titles act,
undivided share in common property
 D.3 – more than one buyer, divided into shares,
usage roster, owners right to sell
 D.4 – Share block control Act, share certificate,
use agreement, statues of share block company
 D.5 – Housing development Scheme for retired
persons act, age of a retired person, life- right,
purchase right of occupation

Assessment Guide 19
Question
Portfolio
Complete the following multiple answer questions by

circling the correct statement/answer.
Correct answer are:
1.4 e
SO 2
 E.1 = a & d
 E.2 = b
 E.3 = b
 E.4 = a
Letting and hiring contracts
It is important for an estate agent to receive a mandate
from a lessor. What information should such mandate
contain in order to protect the estate agent’s rights?

SO 2
Lessors name and particulars, required monthly

1.5 a
rental, special instructions, duration and renewal

of lease
 Also include special features, commission
arrangements, collection of rentals, inspection of
premises

Assessment Guide 20
Question
Portfolio
In the table below list the differences between a

Sectional Title Lease agreement and a Residential Lease
Agreement
1.5 b

SO 2
 Management rules
 Water usage, sewerage, security fees, rates and
taxes
 Maintenance clauses
Discuss the letting agent’s duties in relation to
deposits, breach notices, stamp duty and renewal
notices.
Answer should include discussion of duties relating to:
1.5 c
SO 2
 Deposits
 Breach notices
 Stamp duty
 Renewal notices

Assessment Guide 21
Question
Portfolio
Legislative provisions in immovable property

Define the following terms:
• Servitudes
• Praedial servitudes
1.6 a
SO 3

 Definition of Servitudes
 Definition of Praedial servitudes
Discuss the legislative conditions regarding property

taxing surrounding the sale of immovable property
Answer should include :

1.6 b
SO 3
 Tax payable on transactions

 Responsible parties
 Exemptions in terms of section 12

Assessment Guide 22
Question
Portfolio
Discuss the Deeds Registries Act 47 of 1937 and how

this affects you as an estate agent when dealing with
UNIT STANDARD
the different property titles and their registration.

246733
1.6 c
SO 3
Answer should include :

 The principles of the Act
 Discussion of the affect of the act on the estate
agent

Assessment Guide 23
Question
Portfolio
The competencies of natural persons and legal entity’s

In the table on the following page indicate what
procedures you as an estate agent will follow for each
type of client to ascertain that you adhere to the
legislative and common law competency provisions
when dealing with each of the listed entity’s.
 Candidate must be able to establish the procedures

to be followed in the role of property seller and
1.7 a
SO 3
property purchaser for each of the following

entities:-
 Individuals
 Companies
 Close corporations
 Trusts
 Deceased Estates
 Partnerships
 Clubs, foundations and bodies corporate

Assessment Guide 24
Document Review: Activity 2 – Practical Assignment
Question
S/O Portfolio Assessment Item Feedback 1st sub 2nd sub 3rd sub
U/S
The candidate must present a PRACTICAL ASSIGNMENT providing the following evidence :
The Estate Agency Affairs Act provisions
Source a copy of the Estate Agency Affairs Act 112 of
1976 and discuss the following factors :-
a) What are the main provisions of the Act?

b) How do these provisions affect you as an
Estate Agent?
SO 4
c) What duties and obligations are imposed

2.1
on you as an estate agent by the Act?

d) How will you apply this in your current
position as estate agent
Evidence must include the following:

 Discussion on the provisions of the Act
 The main provisions of the Estate Agency Affairs Act
as it affects the estate agent are understood and
applied

Assessment Guide 25
Question
Portfolio
The Estate Agency Affairs Board

Visit the EAAB web site on www.eaab.org.za. Identify
and discuss the following :
a) a) The functions of the Estate Agency Affairs
Board
b) How do these functions govern your actions

as an estate agent?
c) What actions or omissions are considered by
SO 4
2.2
the Board to be deserving of sanction?
Evidence must include the following :

 Functions of the Estate Agency Affairs Board are
understood and explained
 The duties and obligation imposed on estate agents
by the Act are explained and understood
 Instances deserving sanction from the Board

Assessment Guide 26
Question
Portfolio
Trust Monies and fidelity fund certificates

Discuss the following :
a) The rules relating to Trust Monies and Fidelity
Certificates
b) In your current workplace, which measures are
in place to ensure that these rules are adhered
SO 4
2.3
to?
Evidence must include the following:
 Rules relating to trust moneys and fidelity fund
certificates are understood and explained
 Discussion in which candidate outlines the rules
and measures in his/her current workplace.

Assessment Guide 27


Assessment Guide 28
Document Review: Activity 1 – Knowledge Assignment
Question
Portfolio
1st 2nd 3rd

US S/O Assessment Item Feedback
sub sub sub
The candidate must present a KNOWLEDGE ASSIGNMENT which meets the following criteria:
The Financial Advisory and Intermediary Services Act (FIAS)

Explain the purpose of the Financial Advisory and
Intermediary Services Act (FAIS) with special reference to the

Real Estate Industry.
Evidence must include:
SO 1 & 2
1.1a
 Explanation of the purpose of the FAIS act in context

with the Real Estate Industry
 Discussion should include factors of due diligence,
criminalising of money laundering, reporting
structures

Assessment Guide 29
Question
Portfolio
1st 2nd 3rd
sub sub sub
The FIAS Act refers to both Financial Service Providers and

Financial Products.
Define and explain each of these concepts with examples.
SO 1 & 2

1.1 b
 Definition of a Financial Service Provider with

examples
 Definition of Financial Product with examples

Assessment Guide 30
Question
Portfolio
1st 2nd 3rd
sub sub sub
One of the principals of your estate agency firm seems to be

experiencing some conceptual difficulty in appreciating the
difference between a natural person and a juristic person
within the context of FAIS.
Clearly explain to that principal:

 what a natural person is;
SO 1 & 2
 how the concept of “natural person” is defined in

1.1 c
FAIS; and
 the differences between a natural and a juristic
person.
 Definition of a natural person
 Natural person as defined in FAIS
 List/ discussion detailing the differences between
natural person and juristic person

Assessment Guide 31

Question
Portfolio
1st 2nd 3rd

sub sub sub
The candidate must present a PRACTICAL ASSIGNMENT providing the following evidence
Consumer protection under FIAS

Prepare a report for your Principle Agent outlining your own
views on whether or not there is, in fact, a need for special

legislation such as the FAIS Act, to protect consumers in their
dealing with financial service providers. Refer to the historical
2.1 a
SO 1
situation in South Africa and similar international legislation.
 The need for the FAIS Act as protection for consumers is

explained with reference to the historical situation in SA and
similar international legislation

Assessment Guide 32
Question
US S/O Portfolio Assessment Item Feedback
1st 2nd 3rd
sub sub sub
Reflect on the current position in the financial services

industry and contrast this situation with the state of affairs
that prevailed in the financial services industry prior to the

introduction of FAIS.
2.1 b
SO 1
 Reflective answer on how candidate perceives the current

position of the financial services industry
 A contrast outline between the current and previous
financial services industry

Assessment Guide 33
Question
1st 2nd 3rd
sub sub sub
The principal of your estate agency firm has been asked to give
advice to a longstanding and loyal client of the firm regarding
what the client believes was a deceptive and unfair practice
that was perpetrated against her by a certain financial service
provider whose services she had recently used. Your principal,
aware that you are now quite the expert in FAIS, approaches
you for your assistance in the matter. He requests you to
provide a memorandum detailing:
a) the protection that consumers have in their dealings

with financial service providers through FAIS giving
clear and concise examples of the nature of such
2.1 c
SO 1
protection;
b) the role, duties and powers of the courts in granting
redress in the event that the client should decide to
institute civil proceedings against that financial
service provider rather than launch a complaint
through the office of the Ombud.
Evidence should include :
 Specific reference to the protection afforded to consumers
with examples
 Outline of the role, duties and powers of the courts

Assessment Guide 34
Question
1st 2nd 3rd
sub sub sub
Financial Services under FAIS

Identify, and list, the financial services work roles that you
believe are affected by FAIS giving special attention to the
requirements for licensing of such persons by the Financial
Services Board.
2.2
Evidence should include:-

 Work roles affected by FAIS are identified with reference
to requirements for licensing by the Financial Services

Board related to each
Financial Service Providers and Representatives

SO 2
Explain the relationship that exists between Financial Service

Providers and their representatives in accordance with the
relevant provisions of FAIS. You must, in this respect, also refer
specifically to the accountability and responsibility
requirements imposed upon Financial Service Providers for the
2.3
functions and activities of their representatives
Evidence should include :-

 The relationship between Financial Service Providers and
representatives is explained with reference to
accountability and responsibility

Assessment Guide 35
Question
1st 2nd 3rd
sub sub sub
Licensing under FAIS

Now that you are acquainted with the major provisions of
FAIS, you have decided that it would be worth your while, as
an estate agent, also to be licensed as a Financial Service
Provider since this would enable you to expand the range of
services that you are able to offer to your clients. Write a full
report in which you

address the following :
a) explain the process that you will be required to follow
SO 2
2.4
to be licensed as a Financial Service Provider with the

FSB.
b) Are there any ongoing compliance requirements that
you will have to meet to retain that license? If so give
full details of such ongoing compliance requirements

 The process to be followed for licensing is explained
 The requirements for ongoing compliance are identified
and explained

Assessment Guide 36
Question
1st 2nd 3rd
sub sub sub
FAIS suspension and withdrawal

Indicate the conditions under which an FSP licence or
authorisation may be suspended, withdrawn or reinstated in

terms of FAIS. Also furnish relevant examples in respect of
each of the instances that you have identified.
SO 2
2.5

 Conditions under wish suspensions, withdrawals and
reinstatement of authorisation may be imposed are
explained with examples.

Assessment Guide 37
Question
1st 2nd 3rd
sub sub sub
The Registrar
Your agency has just employed two new Agents. As part of
their training your principle agent has requested that you
prepare a detailed briefing of the statutory role and functions
of the Registrar giving special attention both to:
 the Registrar’s relationship to the Financial Services

Board; and
SO 3

2.6
the steps that the Registrar may take in cases of non-

compliance.

 The role and functions of the Registrar are explained
with reference to the relationship to the Financial
Services Board .
 The steps that the Registrar could take in cases of non-
compliance

Assessment Guide 38
Question
1st 2nd 3rd
sub sub sub
The FAIS Ombudsman

Visit the FAIS website with specific reference to recent rulings
made by the Ombudsman. Select one ruling on the site and
address the following :-
a) Explain the role and functions of the FAIS Ombud with

specific reference to the ruling that has been made by
the Ombud.
b) What implications do you believe the office of the
SO 3 & 4
Ombud has for the financial services sub-sector?

2.7
c) How do rulings of the FAIS Ombud affect and impact

on any other sector such as, say, the estate agency
sector?
 The role and functions of the FAIS Ombuds are explained
with reference to recent rulings .
 The consequences arising from rulings from an approach
to a regulatory body by a client are discussed
 The impact as a result of rulings by the Ombud is
discussed

Assessment Guide 39
Question
1st 2nd 3rd
sub sub sub
The mechanisms for enforcement

You are required to conduct research into the roles, duties and
powers of the courts in enforcing the provisions of FAIS. You
should, more specifically, examine applicable High Court
judgements (which are binding on the lower courts) that have
been made against financial service organisations and FSPs
under circumstances where:

• there has been a non-compliance with the statutory
provisions of FAIS;
SO 3
2.8
• a FSP has wilfully (or deliberately) made false,

misleading or deceptive statements to a client; and
• a FSP has deliberately concealed material facts from
a client..
Write a full report on your research conducted addressing
the following:-
a) Indicate, from the results of your research, the nature
of the redress that courts have been able to provide
to aggrieved consumers.
(continued page 40)

Assessment Guide 40
Question
1st 2nd 3rd
sub sub sub
b) Do you believe that the courts play an effective role in

the enforcement of FAIS and in the protection of
consumers?
c) What recourse is available to aggrieved clients?
d) How, in your view, could this function still be

2.8 CONTINUED
improved further?
SO 3
 The roles, duties and powers of the courts are described in

terms of judgement against organisations and redress
through the courts.
 The rights of recourse available to aggrieved clients are
explained with examples

Assessment Guide 41
Question
1st 2nd 3rd
sub sub sub
Client Complaints
Investigate the manner in which complaints are handled by
the Estate Agency Affairs Board and draft a memorandum
detailing these procedures.
a) Compare and contrast the EAAB complaint handling

procedures with the investigative procedures referred
to in relevant FAIS directives.
SO 4
2.9
b) Which of the procedures, in your view, is the more

effective?
 The manner in which complaints are handled by the

industry is investigated with reference to Financial
Services Board directives

Assessment Guide 42


Assessment Guide 43
Document Review: Activity 1 – Knowledge Assignment
Question
Portfolio
1st 2nd 3rd

sub sub sub
The candidate must present a KNOWLEDGE ASSIGNMENT which meets the following criteria:
Concept of Money Laundering

Discuss the following concepts:-
a. The concept of money laundering
b. Unlawful activity – provide examples with your

discussion
SO 1
1.1a
 The process by which the proceeds of illegal activities

are channelled into lawful commercial dealings which
are designed to conceal the source of the money and
also to create the impression that the money was
legitimately obtained

Assessment Guide 44
Question
Portfolio
1st 2nd 3rd
sub sub sub
b. Unlawful activity – provide examples with your

discussion
UNIT STANDARD
1.1 b
SO 1

 . Identification of unlawful activities i.e engaging in
242593
transactions with the purpose of concealing origin

and or identity are provided with examples

Assessment Guide 45
Question
Portfolio
1st 2nd 3rd
sub sub sub
Money Laundering Acts

Consider the provisions of the following Acts :
•the Prevention of Organised Crime Act, 121 of 1998
(“POCA”);
•the Financial Intelligence Centre Act, 38 of 2001 (“FICA”);
•the Protection of Constitutional Democracy Against Terrorist
and Related Activities Act, 2004 (“POCDATARA”); and
•the Money Laundering and Terrorist Financing Control
Regulations (including regulations, exemptions and guidance
notes);
a. Discuss the purpose of the various Acts

1.2 a
SO 1

 The aim of POCA is to fight organised crime generally
It criminalises transactions involving ‘dirty’ money
and has a broad range
 FICA to combat money laundering activities,
maintain integrity of the financial system.
Anti- money laundering regime designed to break
the money laundering cycle
 provides measures designed to prevent and combat
terrorism and related activities as well as financing
of terrorism.
 guidance notes that are issued by the FIC from time
to time.

Assessment Guide 46
Question
Portfolio
1st 2nd 3rd
sub sub sub
Indicate how each of these Acts contributes to the prevention

of money laundering
 Reflective on how the candidate views on how each of
1.2 b
SO 1
the Acts contribute to the prevention of money

laundering

Assessment Guide 47
Question
Portfolio
1st 2nd 3rd
sub sub sub
Identification and Verification

Your firm has just received a mandate from a natural person
to market her residential property for sale. The seller informs
you that she presently resides at the property. Describe the
various steps that you will take to identify and verify the
seller and how you will go about the process
UNIT STABDARD 242593
Evidence must include details of:-

 official identity document bearing a photograph of
the person during a face-to-face meeting with the
1.3 a
SO 1
person
 in the absence of a valid identity document, a valid
South African driver’s licence or a valid South African
passport may be accepted.
 details of the current, permanent home address
 comparing the client’s particulars against
documentation
 verification purposes
 Clear outline of the process that will be followed

Assessment Guide 48
Question
Portfolio
1st 2nd 3rd
sub sub sub
Case study – Lessor granting mandate telephonically:-

Describe the steps that you will take to identify and verify the
identity of the lessor. Indicate, in addition, when you will
accept the new leasing mandate from the lessor?
 telephone contact with the client at the numbers
listed under his/her name in the telephone directory.
 interviews with the client’s employer / business
UNIT STABDARD 242593
partners.
 references from well-known and reputable financial
institutions that are also accountable institutions.
1.3 b
SO 2
 Confirm cheque drawn by a client using the same

name as the one provided to the institution has been
cleared by a locally registered bank.
 Require payment or a deposit by means of a cheque
drawn on a locally registered bank.
 Require the client to visit the institution in person to
conduct the first transaction or collect documentation
in the course of business and at the same time to
present his/her official identity document.
 Acceptance of mandate - after identification&
verification.
Assessment Guide 49

Question
Portfolio
1st 2nd 3rd

sub sub sub
The candidate must present a PRACTICAL ASSIGNMENT providing the following evidence
Accountable Institutions
Estate agents are specifically mentioned as an accountable
institution in Schedule 1 of FICA. Draft a short memorandum
to your principal in which you discuss and explain the
following :-
a) The concept of an accountable institution

b) The statutory bodies created to support the money
laundering legislation
SO 1
c) The duties of an estate agent as an accountable

2.1
institution
 The statutory bodies created to support the money
laundering legislation are identified with reference to the
functions of the different role players
 The concept of an accountable institution is explained with
reference to the duties of accountable institutions under
the Act.

Assessment Guide 50
Question
1st 2nd 3rd
sub sub sub
The Money Laundering Reporting Officer

Scenario of appointment as MLRO
Explain to your principal the role and functions that you will
now have to undertake and give her specific examples of what
2.2 a
SO 1
you intend to do as the MLRO of the enterprise.


 Role and functions of the Money Laundering Reporting
Officer are explained with examples
Also draft one of the monthly reports of activities that you
have undertaken as the MLRO giving your principal specific
recommendations regarding your findings so that your
enterprise will be found to be complaint in the (very real)
2.2 b
SO 1
event of an inspection visit by FIC officials

 Monthly report indicating activities undertaken and
recommendations to ensure compliancy of the
organisation.

Assessment Guide 51
Question
1st 2nd 3rd
sub sub sub
“Know your client”

Your principal has been asked to address a seminar of the
Institute of Estate Agents on the identification and verification
procedures that are contained in FICA. He instructs you to
research this aspect of the matter for him and make specific
reference to :-
a) The categories of clients indicated in the money
laundering legislation
b) The documents required to identify and very each

category of client
c) The circumstances and products that are exempted
SO 2
2.3
from the “know your client” requirements with

examples.
Once you have completed your research draft a
memorandum for your principal accordingly

 Categories of client indicated in the money laundering
legislation are named
 Indication is given of the documents required to identify
and verify each client
 Circumstances or products that are exempt from the know
your client requirements are identified with examples
Assessment Guide 52
Question
1st 2nd 3rd
sub sub sub
Identification requirements
Simulated scenario – Joe Bloggs CC – marketing of immovable
property
Explain to your principal in a written report:
 the information you will need to obtain from the
person acting for the close corporation for this

purpose;
 the verification steps that you intend following in
2.4 a
SO 2
pursuance of his instruction (that is, for instance, what

documents you will require from the close
corporation); and
the additional information that you will probably need to
complete the verification process.
 The concepts of identification and verifications are
explained with reference to a business relationship or
one that requires indication.

Assessment Guide 53
Question
1st 2nd 3rd
sub sub sub
Write a short brief in which you indicate the nature of the

steps that you will take to identify and verify the identity of:
 a trust;
 an agent acting on behalf of another person; and
 an attorney acting on behalf of a client;
under circumstances where that trust, agent or intermediary
approaches you, in your capacity as an estate agent, to locate
2.4 b
a lessee for an immovable property that belongs to the trust,

other person or client, as the case may be.
SO 2
Evidence must include:-

 The concepts of identification and verification are
explained with reference to above
organisations/persons in the capacity of the lessor
Also address a letter to the trust, other person or client

indicating what documentation you will require for the
verification process
2.4 c

 A letter addressed to person / client indicating
documentation required for verification

Assessment Guide 54
Question
1st 2nd 3rd
sub sub sub
Record keeping documentation and time frames

Draft a memo in which you discuss the requirements relating
to the accessibility of information
2.5 a

 Requirements relating to accessibility of information are
explained with examples
Provide your principal with a comprehensive list of the different

records that the firm must keep and maintain pursuant to
relevant anti-money laundering legislation;
2.5 b
SO 3

 Records required by the money laundering legislation are
listed
Draft an appropriate reference matrix, for the benefit of all

members in the service of the firm, giving them an indication
of the statutory timeframes for the storing of these records.
2.5 c

 A matrix providing an indication of timeframes required
for storing documentation required by money
laundering legislation.

Assessment Guide 55
Question
1st 2nd 3rd
sub sub sub
The reporting process

Simulated scenario – two reports received by MLRO
Discuss why you think the above transactions could be
2.6 a
suspicious
 Possible indicators that could infer that a transaction is

suspicious
SO 3
Indicate who is responsible for reporting the suspicious

transactions and the process that you will follow in dealing
with these two reports
2.6 b
 Who is responsible for reporting suspicious

transactions
 The process to be followed in reporting different types
of transactions is explained

Assessment Guide 56
Question
1st 2nd 3rd
sub sub sub
Furnish your own report on the two matters to the principals

of your firm.
2.6 c
 Report indicating the findings from the two reports

provided with indication of action that is recommended to

remedy the situation.
SO 3
Would you keep a copy of any reports that you might submit
to the FIC and, if so, where will you retain them?
2.6 d
 Reflective answer indicating whether copies will be kept

and where these report would be filed
 Reference to confidentiality and secure record keeping
system

Assessment Guide 57
Question
1st 2nd 3rd
sub sub sub
Personal liability
Indicate what the penalties and the possible defences against
personal liability would be available to the employees ,
principals, trustees and partners of accountable institutions in

the circumstances where the two suspicious transactions
referred to in Activity 2.6 above were not reported to the FIC?
SO 4
2.7

 Penalties for non-compliance are explained with reference
to personal liability and the liability of the organisation
 Possible defences against personal liability for not reporting
suspicious transactions available to employees, directors,
trustees and partners of accountable institutions in the
event of prosecution are discussed.

Assessment Guide 58
Question
1st 2nd 3rd
sub sub sub
Internal rules of an organisation

Now that you have been appointed as the MLRO of your
estate agency firm:
Carefully analyse your firm’s internal rules for FICA

compliance; and draft a memorandum to your principal on the
2.8 a
outcome of this analysis particularly highlighting any areas

that you may have found that, you believe, are not compliant
with the requirements for effective internal rules.
SO 4
 The internal rules of an organisation relating to the various

Acts that refer to money laundering are analysed for
compliance
Suggest suitable ways in which the firm’s internal rules should
be amended to ensure that they become compliant.
2.8 b
 Reflective answer indicating remedies for areas which

were found to be non-compliant during analysis in point
2.8a

Assessment Guide 59
Question
1st 2nd 3rd
sub sub sub
Explain to your principal the impact of non-compliance on the

economy of South Africa with reference to attracting Foreign
Investment
2.8 c

 The impact of non-compliance on the economy of South
Africa is explained with reference to attracting foreign
investment
Whistle blowing
Your principal has requested you to research the
consequences of whistle blowing for individual estate agents
SO 4
at your estate agency firm. Undertake the necessary research

and draft a report on the findings of that research in which the
consequences of whistle blowing are discussed with full
2.9
reference to any appropriate legislation. (Hint: Ensure that you

also deal with the provisions of the Protected Disclosures Act
in your report.)
 The consequences of whistle blowing for the individual are
discussed with reference to the appropriate legislation

Assessment Guide 60
Document Review: Activity 3 – Workplace Evidence

Question
Portfolio
1st 2nd 3rd

US SO Assessment Item Feedback
sub sub sub
The candidate must present WORKPLACE EVIDENCE that meets the following criteria:
Logbook
 Competed by supervisor
3.1
 Signed and dated, ratings included

Reflective Journal
ELO 2
Weekly Journal An explanation of how the assessment

under review caters for special needs without
3.2
compromising the validity of the assessment.

 Weekly Journal of activities.
 Includes research, mentored discussions with
principal agent

Assessment Guide 61
Assessment Review Documents
Review
The assessor that completed the final judgement on the candidate is required to
conduct the assessment review.
Review the assessment process, instruments and evidence requirements for

continuous improvement purposes.
This review will not affect the competence declaration of the candidate. Assessor
may include recommendations for future improvement of practices
Assessor’s Name ID Number
Contact Details of Email

Assessor Phone
Fax
Review Criteria Comments

Consistent
Authentic
Sufficient
Reliable
Current
Valid
1 Please conduct an honest review of the Assessment Instruments used in this assessment:
Task 1
Knowledge
Assignment
Practical Assignment
Task 2
Knowledge
Assignment
Task 3
Knowledge
Assignment
Assessment Guide 62
Review Criteria 1 2 3 4 5 Comments

On a scale of 1 – 5, please review the practices listed below.
(KEY: 1 – no evidence, 2 – some evidence, 3 – sufficient evidence, 4 – good evidence, 5 – best practice)
2 Do you feel the assessments
conducted was fair in relation to
the programme requirements
3 Was the assessment free of
potential assessment barriers such
as language, literacy, access to
resources?
3 Was the assessment process
followed in line with organizational
requirements?
4 Are the learning materials and
assessment activities supportive of
the assessment strategy?
5 Are the workplace and practical
environment sufficiently supportive
of the assessment strategy?
Questions Yes No
6 Was the learner prepared for the assessment?
7 Did the learner receive sufficient instructions for the assessment?
8 Was the learner satisfied with the assessment process used?
9 Did you give the learner constructive feedback?
10 Was the assessment cost effective?
Recommendations
(Provide feedback on Validity, authenticity, currency and sufficiency of candidate evidence.)
Assessor Signature Date Review Completed

LU 2.1 Assessment Guide Final

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LU 2.1 Assessment Guide Final

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Assessment Guide 1

Candidate Information ..................................................................................................... 4

Results Summary & Judgement ........................................................................................ 5

1st Submission ......................................................................................................................................... 5

Assessment Recording Tools – Task 1 .............................................................................. 11

Document Review: Activity 1 - Knowledge Assignment .................................................................... 12

Assessment Recording Tools – Task 2 .............................................................................. 27

Document Review: Activity 1 – Knowledge Assignment ................................................................. 28

Assessment Recording Tools – Task 3 .............................................................................. 42

Document Review: Activity 1 – Knowledge Assignment ................................................................. 43

Assessment Review Documents ...................................................................................... 61

59097 FETC Real Estate Level 4©Services SETA

59097 FETC Real Estate Level 4©Services SETA

59097 FETC Real Estate Level 4©Services SETA

Results Summary & Judgement

Assessor Registration ID Moderator Registration ID

Source of Evidence Assessment Activity Alignment First Submission

Not Yet Competent

59097 FETC Real Estate Level 4©Services SETA

Assessor Registration ID Moderator Registration ID

Source of Evidence Assessment Activity Alignment First Submission

59097 FETC Real Estate Level 4©Services SETA

Not Yet Competent

59097 FETC Real Estate Level 4©Services SETA

Assessor Registration ID Moderator Registration ID

Source of Evidence Assessment Activity Alignment First Submission

59097 FETC Real Estate Level 4©Services SETA

Not Yet Competent

59097 FETC Real Estate Level 4©Services SETA

Assessment Recording Tools – Task 1

Key: Feedback – First Submission

59097 FETC Real Estate Level 4©Services SETA

Document Review: Activity 1 - Knowledge Assignment

A contract is an agreement reached between at least 2

contract is an agreement which gives rise to a legal

This evidence should include:

59097 FETC Real Estate Level 4©Services SETA

Explain the different concepts of contact law and the

The evidence should include explanation and examples

How is contractual consensus established?

The evidence should include:

59097 FETC Real Estate Level 4©Services SETA

Which factors influence contractual consensus?

The evidence should include:

 The Will Theory

The evidence should include definitions and descriptions

59097 FETC Real Estate Level 4©Services SETA

Termination and Breach of Contract

Answer should include:

only, i.e. until 17h00 on a certain date.

59097 FETC Real Estate Level 4©Services SETA

Discuss the concepts of breach of contract within the

Answer should include:

 Definition of breach of contract and examples

 Types and forms of breach including :- Positive

 Remedies for the breach

Immovable property contracts of sale

Answer should include: When

 by an identified seller to an identified

59097 FETC Real Estate Level 4©Services SETA

What do you require to create a binding Agreement of

Answer should include:

2. signed by both the purchaser and seller