REAA - CPPREP4001 - Student Learner Guide v1.5 (QLD)

CPPREP4001 - Prepare for professional practice in real estate (Release 1)
Student Learner Guide
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© Real Estate Academy Australia Version 1.6 – January 2022
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Table of Contents
Legislative Requirements .................................................................................................................. 4
Equal Opportunity and Anti-Discrimination .................................................................................................. 4
Fair Work Act 2009 ..................................................................................................................................... 5
Key Agencies and Industry Bodies ...................................................................................................... 6
Civil and Administrative Tribunal.................................................................................................................. 6
Real Estate Institute of Australia (REIA) ........................................................................................................ 6
Real Estate Institute of QLD (REIQ) ............................................................................................................. 7
Property Council of Australia (PCA) .............................................................................................................. 7
Real Estate Business – Ownership Structure ....................................................................................... 7
Sole Traders ............................................................................................................................................... 7
Partnerships ............................................................................................................................................ 8
Company ................................................................................................................................................. 8
Trust......................................................................................................................................................... 8
Organisational Structures - Types of Real Estate Agency Models ......................................................... 9
Independent ............................................................................................................................................ 9
Franchise.................................................................................................................................................. 9
Membership Models ................................................................................................................................ 10
Real Estate Services ......................................................................................................................... 10
Sales ....................................................................................................................................................... 11
Property Management ............................................................................................................................. 11
Agency Personnel and Real Estate Job Roles ..................................................................................... 11
A Real Estate Agent ............................................................................................................................................. 12
The Relationship between the Agent and Client ................................................................................ 13
Real Estate Licensing and Registration Requirements ....................................................................... 14
Unlicensed Trading ......................................................................................................................... 14
Commission Sharing/Licence Lending............................................................................................... 16
Conjunctional Agreements ........................................................................................................................ 17
Licence Lending........................................................................................................................................ 17
Employment Arrangements ............................................................................................................. 17
Modern Awards ....................................................................................................................................... 17
Commission, bonus or incentive payments ................................................................................................. 18
16.1 Payment by wages with commission, bonus or incentive payments ................................................... 18
16.2 Written agreements generally ........................................................................................................ 18
16.7 Commission-only employment ........................................................................................................... 19
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Employer Responsibilities ................................................................................................................ 20
Work Health and Safety ............................................................................................................................ 20
Comply with Legislation ............................................................................................................................ 20
Employer Tax Obligations ......................................................................................................................... 21
Pay and entitlements ................................................................................................................................ 21
Leave Entitlements ................................................................................................................................... 21
Superannuation ..................................................................................................................................... 21
Legal obligations when training staff .......................................................................................................... 21
Record keeping ........................................................................................................................................ 21
Employee Responsibilities ............................................................................................................... 21
Communication ............................................................................................................................ 21
Types of Communication Strategies ........................................................................................................... 22
Verbal communication strategies .............................................................................................................. 22
Nonverbal communication strategies ......................................................................................................... 22
Continuing Professional Development .............................................................................................. 25
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Legislative Requirements
The Law and its Legislative Acts play an important role in society and in Real Estate.
It is imperative that anyone working in a profession today understands the legal
requirements when dealing with consumers. All acts are available for viewing on the internet
and can be ordered through Government print agencies.
The importance of having legislation in the Real Estate environment is to:

• make business legal and equal
• put into practice policies
• provide a framework to regulate the protection of consumers and fair trading
There are a number of Acts State and Federal that will impact on the duties performed by
an agent as discussed in CPPREP4003 - Access and interpret legislation in real estate
(Release 1) Student Learner Guide.
Real Estate Legislation is produced in two parts – The “Act” itself and the supporting
regulations.
The purpose of having regulations is that they provide:
1. An interpretation of the act – and how it should be applied in day-to-day real estate
practice and
2. A framework for making changes to real estate business practices without having to re-
draft and prepare a new Act of Parliament.
You should ensure you are familiar with the provisions in both the Act and Regulations.
The Act and Regulations, together with the Rules of Conduct can be accessed via legislation
websites.
• QLD - www.legislation.qld.gov.au
You should now visit this site relevant to your state and download a copy of both the Act and
the Regulations to your PC for reference.
The information in the learner guide is not exhaustive and student’s should access and use
the Acts and Regulations to enhance their understanding of this unit of competency.
Equal Opportunity and Anti-Discrimination

In Australia, it is unlawful to discriminate on the basis of a number of protected attributes
including age, disability, race, sex, intersex status, gender identity and sexual orientation in
certain areas of public life, including education and employment. Australia's federal anti-
discrimination laws are contained in the following legislation:
• Age Discrimination Act 2004
• Disability Discrimination Act 1992
• Racial Discrimination Act 1975
• Sex Discrimination Act 1984.
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The Australian Human Rights Commission has the statutory power to receive, investigate
and conciliate complaints of unlawful discrimination under Australia's anti-discrimination
legislation.
Each state and territory has also enacted anti-discrimination legislation.

• Anti-Discrimination Act 1991 (QLD)
In Queensland formally known as the Anti-Discrimination Commission Queensland, the

Queensland Human Rights Commission have the responsibility of handling discrimination
complaints and in Victoria the same responsibility is held by the Victorian Equal Opportunity
and Human Rights Commission.
Fair Work Act 2009

The Fair Work Act established a new system of regulation creating a national system for
regulating industrial relations in Australia. All employees of that state will effectively be
covered by the National Fair Work Act. The Act provides workplace laws and guarantees a
safety net in relation to wages and is the source of the National Employment Standards,
Modern Awards and Enterprise Agreements in Australia.
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Key Agencies and Industry Bodies

There are a number of key regulatory bodies and industry bodies that are relevant to real
estate practice and will be discussed in the following section.
Office of Fair Trading (QLD)

The Role of the Office of Fair Trading (QLD) is to regulate the Real Estate Industry in their
respective states.
The Office of Fair Trading (OFT) and Consumer Affairs (CA) control over agents is absolute
and is dictated by the state specific legislation Property Occupations Act 2014 (QLD).
The role of the regulator in administering the Act includes:
• Licensing and Registration
• Improving the delivery of real estate services
• Promoting community awareness of real estate services
• Investigating complaints made by the public and helping resolve disputes.
• Continuing the development of the regulatory framework.
Additionally, the OFT administers the Fair-trading Act that also affects the conduct of real
estate agents and real estate practice in QLD.
Civil and Administrative Tribunal

The QLD Civil and Administrative Tribunal (QCAT) is established under the Queensland
Civil and Administrative Tribunal Act 2009.
Civil and Administrative Tribunals deals with a broad and diverse range of matters, from
tenancy issues and building works, to decisions on guardianship and administrative review
of government decisions.
It is a single point of access for specialist tribunal services providing services that are prompt,
accessible, economical and effective.
Real Estate Institute of Australia (REIA)

The Real Estate Institute of Australia (REIA) is the peak body and national association for
Australia’s real estate profession. REIA is a politically non-aligned organisation that provides
research and well-informed advice to the Federal Government, Opposition, members of the
real estate profession, media and the public on a range of issues affecting the property
market. Each State and Territory has a real estate institute.
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Real Estate Institute of QLD (REIQ)

The Real Estate Institute in each state is the peak industry body for real estate agents and
property professionals. The largest and most influential association of its kind, the industry
body represents thousands of agents across the state. With a track record and reputation for
delivering valued products and services, it promotes and responds to the changing needsof
members and boasts over 100 years of experience.
Property Council of Australia (PCA)

The Property Council of Australia represents owners and managers of commercial, industrial
and retail properties, providing members with:
• Forums for developing markets,
• contacts and doing business.
• Representations and recommendations to government when considering new
regulations, laws or standards.
• Provision of information & basic market research such as commercial rentals and
vacancy levels, as well as cost-effective management.
• Specialised training & professional development.
Real Estate Business – Ownership Structure

https://business.gov.au/planning/business-structures-and-types/business-structures
The Agency is the business, and the office is the premises where property transactions are
delivered, while the Agent is the individual that delivers the services. There are a number
of business structures, main types common to real estate are:
• Sole trader business structure - an individual trading on their own

• Partnership business structure - an association of people or entities running a business
• Company business structure - a legal entity separate from its shareholders
• Trust business structure – a relationship where a trustee carries on the business
Sole Traders
If you operate your business as a sole trader, although you may decide to have employees,
you trade, control and manage all aspects of your business.
Advantages
• There are very few legal and tax formalities involved setting up the business.
• The structure is inexpensive to set up.
• You have full control of the business.
• You receive the full benefit of profits made by the business.
• You keep all the after-tax gains if the business is sold.
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Partnerships
A formal voluntary business arrangement in which two or more parties unite to share in the
profits and risks of a continuing business venture and which by law is considered to be a
group of individuals and not a single entity.
Advantages
• Partnerships are inexpensive to set up.
• Greater access to finances from the resources of all partners.
• There are more people to share the work load.
• There are more people to share losses and legal responsibilities.
Company
Companies are regulated by the Australian Securities and Investment Commission (ASIC).
The ASIC is an independent government body that administers the Corporations Act.
Advantages
• it is a separate legal entity from the owners;
• you can own property in the name of the company;
• there is usually limited liability for the shareholders (unless they have given a personal
• guarantee);
• you may be able to take advantage of tax minimisation schemes (legal ones, of
• course!);
• it can be owned and operated by only one shareholder and director;
• it may make it easier to attract capital investment because of shareholders' limited
• liability.
Trust
A trustee may carry on a business for the benefit of a particular family and distribute the
profits to those in the trust. This type of business is often more tax effective.
Advantages
• Asset protection and limited liability
• Tax advantages as income and capital gains is distributed to all those in the trust.
• Debts are not passed on to beneficiaries
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Organisational Structures - Types of Real Estate Agency Models

In most cases, it makes no difference if a Real Estate Agency is an independent or a
franchise.
The success of the individual agency and the perks it can offer an Agent are the most
important things to consider when seeking a real estate position.
Independent real estate agencies are companies that operate on their own, without a
network of affiliated firms, making decisions about every aspect of the business. While,
franchise agencies have quite a bit of freedom in their operations but must stick to the basic
guidelines of the company with which they are associated.
Independent
Independent agencies maintain control of every aspect of business functions, such as
schedules, accounting, marketing, training and all other activities associated with operating
a real estate business. Examples include – One Agency, Coronis, Bob Smith Real Estate.
Benefits of independent businesses:

• Full control over the business operations
• Unrestrictive growth potential
• Flexibility in all decisions
• No ongoing franchise fees/costs
Drawbacks of independent businesses:

• Branding may not be as recognisable
• Less structure in operations and training support
• Limited resources
• Less group purchasing power
Franchise
A franchise is an agreement or license between two parties. The first party, the franchisee,
(which can be a person or group) is given the rights to market a product or service using the
trademark of the other party, the franchisor. Examples include – Ray White, Raine and
Horne, L J Hooker RE/MAX, Harcourts, Place Real Estate and Century 21.
The franchisees operate with standards and rules set out by the “first party” and a
percentage of commission is paid to that party in return, referred to as a franchise fee.
Benefits of franchise businesses:

• Brand name recognition
• Operational and training support
• Marketing and advertising support
• Group purchasing power
Drawbacks of franchise businesses:

• Costs involved (capital & ongoing fees)
• Operational restrictions
• “Guilt by association”
• Limited growth potential
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The ACCC regulates the Franchising Code of Conduct, which is a mandatory industry code
that applies to the parties to a franchise agreement.
https://www.accc.gov.au/business/industry-codes/franchising-code-of-conduct
From 1 January 2015 Franchising Code was replaced with a new Franchising Code of
Conduct.
The new Code applies to conduct on or after 1 January 2015 and includes;
• introduce an obligation under the Code for parties to act in good faith in their dealings
with
• one another
• introduce financial penalties and infringement notices for serious breaches of the
Code
• require franchisors to provide prospective franchisees with a short information sheet
• outlining the risks and rewards of franchising
• require franchisors to provide greater transparency in the use of and accounting for
money
• used for marketing and advertising and to set up a separate marketing fund for
marketing
• and advertising fees
• require additional disclosure about the ability of the franchisor and a franchisee to sell
• online
• prohibit franchisors from imposing significant capital expenditure except in limited
• circumstances.
These are significant changes, and it is important that franchisors, franchisees and potential
franchises understand their rights and responsibilities under the new Code.
Membership Models
Similar to a fitness club membership, the principal of each office makes their own decisions
and pays a membership fee to access and utilise the business name and products they offer
such as forms, access to real estate websites, marketing and trust account. They are not
governed by the strict rules associated with a Franchise Agreement. @Realty are examples
of the membership model.
Real Estate Services

Within the real estate industry a wide range of services are offered by specialist agencies
and individuals, including:
• Residential Sales: The sale of land, property, homes, apartments, units and
townhouses, where people live or erect a home
• Commercial Sales: The sale of land and property zoned for commercial or business
purposes
• Industrial Sales: The sale of land zoned for industrial purposes and factories,
warehouses etc.
• Business Sales: The sale of an actual business or income producing commercial
enterprise, such as hotels, shops and other business entities
• Residential Property Management: The leasing and management of residential
property
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• Project Management: The sale or leasing of multiple properties on behalf of a

developer or builder
• Commercial, Industrial and Retail Management: The leasing and management
of property used for retail, business, commercial and industrial enterprises
• Strata Management & Community Management: The management of property
developments on behalf of an owner's corporation or neighbourhood association with
common property, and shared facilities and amenities such as buildings, lifts,
swimming pools, etc
• Stock and station Agency: The sale, leasing and management of rural land and
property, the sale of livestock stock and agistment.
• Buyers Agency: Locating and securing property for buyers
• On-site residential property management: Leasing and management of
property specifically within a development where your office and residence is located
• Holiday lettings: Leasing and management of property usually for short term
periods to casual occupants.
• Valuations: The sworn valuation of land and property. Only qualified and registered
valuers may undertake this function.
Sales
• Source and obtain new sales listings
• Provide market appraisals
• Coordinate marketing activities
• Inspecting properties for sale
• Negotiation processes
• Organising, overseeing and presenting of contracts
Property Management
• Source and obtain new rental listings
• Appraising rental properties
• Collecting and monitoring rental monies and accounting to Landlords
• Organising and overseeing of maintenance
• Leasing property
• Property Inspections
Agency Personnel and Real Estate Job Roles

The various roles and licence / certificate categories are defined by the regulator in each
state. Below are examples although the list in not exhaustive, for more information on this
topic refer to the Office of Fair Trading (QLD).
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A Real Estate Agent

This is defined as a person who, for reward, carries on the function of an auctioneer of
land or as an agent for;
• Real estate transactions
• Inducing or attempting to induce or negotiating with a view to inducing any person to
enter into, or to make or accept an offer to enter into a real estate transaction or contract
for a real estate transaction
• The introduction, or arranging for the introduction, of a prospective purchaser, lessee or
licensee of land to another licensed agent or to the owner or agent of the owner of land
• Collecting rents payable in respect of any lease of land and otherwise providing property
management services in respect of the leasing of any land. This does not include a
person who carries on business as an auctioneer or agent in respect of any parcel of
rural land.
A Business Agent - is a person who, as an agent, carries out the following functions for reward:
• Selling, buying, exchanging or otherwise dealing with or disposing of a businesses or
professional practices
• Dealing with shares or interest in the business, or the good will of any stocks connected
with businesses or professional practices
• Negotiating for sale, purchase or exchange of any interest or share in the stocks,
inventory, fixture and fittings connected with the business or professional practice.
A Strata Managing Agent - is a person who, for reward, exercises any functions of an owners
corporation within the meaning of the Strata Schemes Management Act 1996 or any function
that is prescribed by the regulations for the purpose of the definition. This excludes people
who:
• Are owners of a lot in the strata scheme for which the owners corporation is constituted
• Are lessees of a lot in the leasehold strata scheme for which the owners corporation is
constituted
• Are secretaries or treasurers of the executive committee of the owners corporation
• Maintain or repair any property which the owners corporation is responsible for
maintaining or repairing.
A Community Managing Agent - is engaged or appointed for reward, to exercise the functions
of an association constituted for a scheme under the Community Land Development Act
1989 or any other function that is prescribed by the regulations. This does not include:
• A proprietor of a lot within the scheme
• The secretary or treasurer of the association
• A person who maintains or repairs any property that the association is required to
maintain and keep in repair.
On-site Residential Property Manager - is a person who, for reward, carries on business as an
agent for giving possession of residential premises under a lease, licence or contract and
who collects bonds, deposits, rents fees or other charges in connection with any such lease,
licence or other contract.
It is a condition of an on-site residential property managers licence that the licensee must
only act for the principal’s place of residence and only if the licensee owns or has a
prescribed interest in that principal place of residence.
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A Buyers Agent - is a person who, for reward, acts on behalf of the buyer of property. A Buyers
Agent is prohibited from acting on behalf of both the seller and the buyer of the property.
Those who hold a Certificate of Registration are required to obtain additional qualifications
in order to undertake the functions of a Buyers Agent.
Real Estate Licence holders hold the appropriate qualifications within the qualifications
required to obtain their licence and are able to act as Buyers Agents.
The Relationship between the Agent and Client

Your clients are the owners (also referred to as principals) of the properties that you will be
listing for sale or rent.
A real estate agent must comply with a fiduciary obligation and must act honestly, fairly and
professionally in the conduct of a real estate agency practice.
Agents should never knowingly give a prospective client an overestimate of the likely sale
or rental price of a property.
Agents should always disclose relevant facts and information to the buyer that affects the
property i.e. easement at the property or future infrastructure.
An agent must not accept an appointment to act, or continue to act, as a real estate agent
for a client if doing so will place the agent’s duty or interests in conflict with the client’s
interests.
The two duties that agents are obligated to perform when entering into a relationship with a
client:
1. Fiduciary Duty - implied by common law. This relates to the confidence and trust
within the relationship. It is important that care and diligence is taken to ensure that
the trust relationship is not breached in any way.
2. Contractual Duty – duties carried out that are outlined in the contact signed between
the Client and the Agent; Agency Agreement (aka Appointment to Act).
When acting on behalf of a client, it is important that the agency and the representatives
within the agency act within following requirements:
• Comply with a fiduciary obligation incurred as a real estate agent.
• Act honestly, fairly and professionally
• Act within the conduct of a real estate agency practice.
• Exercise reasonable skill, care and diligence.
• Act in the client’s best interests
• Protect client’s assets and money
Agents must not only comply with their clients’ instructions, unless it is unlawful or
unreasonable to do so, but they must also comply with legislation when dealing with money.
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Real Estate Licensing and Registration Requirements

All Real Estate occupations are licensed by each state or territory. To determine the correct
licence will depend on the type of duties you will perform in the relevant state.
All agents who carry on activities covered by legislation in the relevant status must hold a
Real Estate Licence or Registration certificate, which is granted by the Office of Fair Trading
or Consumer Affairs.
Unlicensed Trading
The following sections of the legislation apply to the requirements of principal and its staff to
hold appropriate licences to carry out real estate activities.
QLD
Property Occupations Act 2014
26 What a real estate agent licence authorises
(1) A real estate agent licence authorises the holder of the licence to perform the following
activities as an agent for others for reward—
(a) to buy, sell (other than by auction), exchange or let real property or interests in real
property;
(b) to buy, sell (other than by auction), exchange, or let businesses or interests in
businesses;
(c) to negotiate for the buying, selling, exchanging, or letting of something mentioned in
paragraph (a) or (b);
(d) to collect rents.
(2) A real estate agent may perform the activities mentioned in subsection (1) in the
carrying on of a business, either alone or with others, or as an employee of someone else.
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45 Eligibility for property agent licence
(1) An individual is eligible to obtain a property agent licence only if the individual—
(a) is at least 18 years; and
(b) has the educational or other qualifications generally approved by the chief executive
for a property agent licence.
Note—
The qualifications are stated on the department’s website.
(2) An individual is to be taken to satisfy the requirement mentioned in subsection (1)(b) if

the chief executive is satisfied the individual—
(a) has a comparable qualification to the qualification mentioned in subsection (1)(b); or
(b) within 2 years before the day the individual’s application for a property agent licence
is received by the chief executive—
(i) either—
(A) if the licence applied for is an auctioneer licence—has been licensed as an auctioneer;
or
(B) if the licence applied for is a real estate agent licence—has been licensed as a real
estate agent; or
(ii) has been the holder of a comparable licence under PAMDA.
(3) A corporation is eligible to obtain an auctioneer licence only if a person in charge of

the corporation’s auctioneer business is an auctioneer.
(4) A corporation is eligible to obtain a real estate agent licence only if a person in charge
of the corporation’s real estate agency business is a real estate agent.

69 Substitute licensee
(1) On appointment, a substitute licensee or substitute real estate salesperson—
(a) must act as substitute for the principal licensee, employed licensee or real estate
salesperson for whom the substitute is appointed; and
(b) is taken to be the principal licensee, employed licensee or real estate salesperson
during the period of the appointment.
(2) A principal licensee, employed licensee or real estate salesperson for whom a
substitute has been appointed must not act under the authority of—
(a) the principal licensee’s or employed licensee’s licence while the appointment
continues; or
(b) the real estate salesperson’s registration certificate while the appointment continues.
Maximum penalty—200 penalty units.
(3) The appointment of the substitute licensee or real estate salesperson ends if—
(a) the period of the appointment ends; or
(b) the principal licensee gives written notice to end the appointment from a date stated in
the notice—
(i) for a substitute licensee appointed under section 66(1) or 67(2)—to the substitute
licensee; or
(ii) for a substitute licensee appointed under section 68—to the chief executive and the
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substitute licensee; or
(iii) for a substitute real estate salesperson appointed under section 67(2)—to the
substitute real estate salesperson; or
(iv) for a substitute real estate salesperson appointed under section 68—to the chief
executive and the substitute real estate salesperson; or
(c) the substitute licensee gives written notice to end the appointment from a date stated
in the notice—
(i) for a substitute licensee appointed under section 66(1) or 67(2)—to the principal
licensee who made the appointment; or
(ii) for a substitute licensee appointed under section 68—to the chief executive and the
principal licensee who applied for the appointment; or
(iii) for a substitute real estate salesperson appointed under section 67(2)—to the principal
licensee who made the appointment; or
(iv) for a substitute real estate salesperson appointed under section 68—to the chief
executive and the principal licensee who applied for the appointment; or
(d) the chief executive revokes the substitute licensee’s or substitute real estate
salesperson’s appointment; or
(e) the principal licensee’s or employed licensee’s licence or the real estate salesperson’s
registration certificate is suspended or cancelled; or
(f) if the licensee is a principal licensee—the licensee stops carrying on business as a
licensee.
Commission Sharing/Licence Lending

The agency can share the commission they earn from the sale of property with any person
that holds the necessary registration certificate of licence. They cannot share commission
or lend their licence with anyone that does not hold a real estate licence. The following
legislation is applicable;
QLD
89 Restriction on recovery of reward or expense—no proper authorisation etc.
(1) A person is not entitled to sue for, recover or keep a reward or expense for the
performance of an activity as a property agent or resident letting agent unless, at the time
the activity was performed, the person— (a) either— (i) if the person performed an activity
as a property agent—held a property agent licence; or (ii) if the person performed an
activity as a resident letting agent—held a resident letting agent licence; and (b) was
authorised under the person’s licence to perform the activity; and (c) was properly
appointed under part 4 by the person to be charged with the reward or expense.
(2) A person who sues for, recovers or keeps a reward or expense for the performance of
an activity as a property agent or resident letting agent other than as provided by
subsection (1) commits an offence.
Maximum penalty for subsection (2)—200 penalty units.
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Conjunctional Agreements
Sharing of commission between two separate agencies where the Seller pays the listing
agent commission for the service of selling their property and the listing agent will share that
commission with another agency that acts for the buyer (but not as a buyer’s agent). Where
an agent works as a “buyers agent” the buyer would pay the agent the commission for the
service of finding them a property. In this case a conjunctional agreement with the listing
agency would not be an option as this would be a conflict of interest.
Licence Lending
QLD
Subdivision 1 Licence not to be transferred, lent or borrowed
64. Transfer of licence prohibited

A licence may not be transferred.
65. Offence to sell, lend or borrow licence

(1) A licensee must not —
(a) sell, lend or hire out the licensee’s licence to someone else; or
(b) notify or advertise that the licensee’s licence is available for sale, loan or hire to
someone else, whether licensed or not; or
(c) allow someone else to hold out the person is the holder of the licensee’s licence.
Maximum penalty — 200 penalty units or 2 years imprisonment.
(2) A person must not buy, borrow or hire a licensee’s licence.
Maximum penalty—200 penalty units or 2 years imprisonment.
(3) If a person who is not the holder of an appropriate licence or the licensee’s substitute
licensee has the effective or apparent management or control of a licensee’s business,
the licensee is taken to have lent, and the person is taken to have borrowed, the licensee’s
licence.
Employment Arrangements
Enterprise agreements and modern awards contain minimum entitlements for wages and
conditions of employment for anyone working in the real estate industry. The National
Employment Standards (NES) are minimum standards that cannot be overridden by the
terms of enterprise agreements or awards.
Modern Awards
If you are not covered by an agreement, your minimum wages and conditions are likely to
be set by a modern award.
The modern award will deal with:
• minimum wage rates
• annual leave, and annual leave loading
• other types of leave
• hours of work
• penalty rates, overtime and casual rates
• allowances
• consultation, and
• many other minimum conditions
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For all wages and awards for Real Estate, visit www.fwc.gov.au
Real Estate Industry Award 2010 [MA000106]- applies to Real Estate Agents
employees
14.1 The minimum weekly wage for an adult employee engaged on a full-time basis is set
out below:
Employee Classification Minimum weekly rate

(full-time employee)
As at 01/07/2021 $
Real Estate Employee Level 1 (Associate Level) – first 789.90
12 months of employment at this level
Real Estate Employee Level 1 (Associate Level) – 833.70
after 12 months of employment at this level
Real Estate Employee Level 2 (Representative Level) 877.60
Real Estate Employee Level 3 (Supervisory Level) 965.40
Real Estate Employee Level 4 (In-Charge Level) 1009.40
Clerks—Private Sector Award 2010 [MA000002]– applies to Administrative employees

and those that are not registered.
Commission, bonus or incentive payments
15.2 Commission, bonus or incentive payments

(a) If an employee is entitled to receive any commission, bonus or incentive payment in
accordance with a written agreement made under clause 16 — Commission, bonus or
incentive payments, payment to the employee must be made within 14 days of the
entitlement becoming payable.
(b) The employee’s entitlement to commission, bonus or incentive payment only

becomes payable once the employer has received cleared funds from its client
for the transaction(s) to which the employee’s entitlement relates.
16.1 Payment by wages with commission, bonus or incentive payments

(a) Where the employer and the employee agree that, in addition to the minimum weekly wage,
the employee will be entitled to a portion of the commission paid to the employer, then any
method of calculation or any formula for calculating the amount of commission that will be
payable to the employee must be evidenced in a written agreement between the employer and
the employee.
(b) Where it has been agreed between the employer and the employee that the employee will
be entitled to a bonus or an incentive payment (as opposed to commission under clause 16.1(a))
particulars of the bonus or incentive payment entitlement must be evidenced in a written
agreement between the employer and the employee.
16.2 Written agreements generally

(a) Once a written agreement has been made as provided for in clause 16.1 or clause 16.7, any
subsequent agreement to vary the employee’s commission, bonus or incentive payment
arrangements must be evidenced in a further written agreement between the employer and the
employee.
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(b) Where an employee agrees with the employer to a change in his or her commission, bonus
or incentive arrangement, the employee will be entitled to receive sales commission, bonus or
incentive payments calculated in accordance with the written agreement (whether made under
clause 16.2 or clause 16.1) which was in force on the date the contract for sale or lease of
property became legally enforceable. Provided that in circumstances where a non-commission
only employee is changing to a commission-only agreement, then the commission-only
agreement must not include any provision for a deduction arising from any agreement which
was in force immediately prior to the commission-only agreement becoming operative.
(c) A signed copy of every written agreement regarding commission, bonus or incentive payment
arrangements must be provided by the employer to the employee.
16.7 Commission-only employment

(a) Agreement to enter into commission-only employment arrangements
(i) An employee engaged in property sales or commercial, industrial or retail

leasing as a Real Estate Employee Level 2 or higher (other than a casual employee) may agree
with the employer to be paid on a commission-only basis. Such an employee is considered a
pieceworker and is referred to in this award (and within the real estate industry) as a
commission-only employee.
(ii) An employee paid on a commission-only basis must not be engaged as a

part-time or casual employee.
(b) Objective of commission-only employment

The objective of commission-only employment arrangements is to provide a mechanism by
which a salesperson who meets the requirements set out below should achieve
remuneration of 125% or more of the annualised minimum wage that an employee working
at the same property sales level under this award would be entitled to be paid.
(c) Minimum requirements for commission-only employment

(i) A person may only enter into an agreement to be a commission-only employee when all
of the following conditions have been satisfied:
• the employee and the employer have made a written agreement as provided in
clause 16.2 that the employee will be remunerated on a commission-only basis
setting out the basis upon which the entitlement to commission will be calculated as
provide in clause 16.2;
• the employee has been issued with a real estate agent’s license or is registered or
permitted to perform the duties of a real estate salesperson under real estate law;
• the employee has been engaged in property sales or commercial, industrial or retail
leasing as a Real Estate Employee Level 2 or higher with any Licenced Real Estate
Agent, or has operated his or her own real estate business, for at least 12 consecutive
months in the 3 years prior to entering into a commission only agreement;
• the employee is at least 21 years of age;
• the employee is not engaged as a part-time employee, a casual, a junior, a Real
Estate Employee Level 1 or a trainee; and
• for an employee employed on a commission-only basis after 2 April 2018 the
employee can establish (with the present or any past employer) that he or she has
achieved the Minimum Income Threshold Amount (MITA) prescribed by clause
16.7(d) as may be amended from time to time). Provided that, the MITA will not have
to be achieved in circumstances where the employee has operated his or her own
real estate business within the last 3 years.
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(ii) For the purpose of clause 16.7(c)(i), “real estate business” shall mean a business
involved in the sale of real property or businesses.
(iii) An employee who qualified to be employed on a commission-only basis under this award
prior to 2 April 2018 will continue to be eligible for commission-only employment under the
terms of this award as long as the employment with that employer continues, and subject to
continuing to meet the MITA as required in clause 16.7(d).
(d) Minimum income threshold amount (MITA)
(i) For the purpose of entering into commission-only employment, the MITA has been
achieved if the employee can establish that in any consecutive 12-month period in the 3
years immediately preceding entering into the commission-only agreement, the employee
received annual remuneration (including any commission or bonus payments) at least equal
to 125% of the employee’s classification rate as specified in clause 14 — Minimum rates,
calculated as an annual amount, excluding statutory superannuation.
(ii) The type of documents that an employer may rely upon to establish that the MITA is
satisfied, include but are not limited to:
• individual payment summaries;
• pay slips; and/or
• commission statement records or other sales records.
(iii) The employer must be satisfied on reasonable grounds that the employee has
established that he or she has achieved the MITA within the prescribed time period.
(iv) At the request of the employer, the employee will provide the employer with a statutory
declaration which declares the accuracy and legitimacy of any documentation provided by
the employee under clause 16.7(d)(ii).
Further information can be obtained from the following link

https://www.fwc.gov.au/documents/documents/modern_awards/pdf/ma000106.pdf
Employer Responsibilities
Employers must understand employment-related legislation and your obligations towards
the people who work for them (their employees).
Work Health and Safety

Among the most important responsibilities is the primary duty of care. Employers must
observe all legal requirements for giving employees safe and healthy work. It is also a
requirement to investigate work hazard reports and take corrective actions. Under the Work
Health and Safety Act 2011, you must assess risks and implement and review control
measures to prevent or minimise exposure to the risks.
Every Queensland employer must have workers' compensation insurance. Premiums paid
by an employer cover the costs of benefits received by employees if they are injured or
become ill because of their work.
Comply with Legislation

Issues such as tax and pay, annual leave and time off, and the rights of parents are all
covered by employment legislation and must be applied fairly to employees across your
business.
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Employer Tax Obligations

Employers must know and comply with their employee tax obligations including withholding
an amount from payments made to them, to cover their income tax, any Higher Education
Loan Programme (HELP) repayments and the Medicare Levy. Under the PAYG withholding
system, the employer must report and send all amounts withheld to the Australian Taxation
Office (ATO).
Pay and entitlements

The employer must pay their employees correctly, and ensure the employee receives
everything they are entitled to as an employee under the law in accordance with Modern
Awards, Written Agreements and Commission-only employment.
Leave Entitlements
There are many reasons why an employee may need to take time off. All employees (except
casual employees) are entitled to paid annual leave based on their ordinary hours of work.
Full-time and part-time employees are entitled to 10 days paid personal leave (for sick and
paid carer's leave) each year. Paid personal leave accumulates from year to year. There
are also other leave entitlement employees have under the National Employment Standards
(NES).
Superannuation
An employer must make superannuation contributions for each eligible employees under
the law, introduced from 1 July 1992. Currently the minimum employer contribution is 9.5%
of an employee's 'ordinary time earnings'. The 9.5% is not payable on overtime rates, but
is payable on other types of remuneration such as bonuses and commissions.
Legal obligations when training staff

An employer, is legally obliged to make sure staff are trained to do their jobs safely. Certain
industries also require specific training. Employers should keep a record of any training
completed by staff. Work health and safety training is mandatory in order to keep your
workplace safe for the employer, staff and any visitors or customers.
Record keeping
Employee records must be kept private and confidential and for 7 years.
Employee Responsibilities
Employers can also have expectations of their employees. Employees have responsibilities
including but not limited to
• To know and comply with the conditions of their employment
• To take reasonable care to protect themselves and others that may be affected by
their actions, from risks to health and safety while at work
• To obey lawful orders
• To comply with requirements for privacy/confidentiality of personal information held
by the agency
• To comply with codes and standards for ethical conduct and professionalism
Communication
Communication is the exchange of information between a sender and a receiver. It used
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to be that you only had to worry about the way you communicated face-to-face or on paper.
Technology has changed this completely. It is important for people to take into account
every aspect of how they are relaying information. This is where communication strategies
come into play. Communication strategies are the blueprints for how this information will
be exchanged.
Types of Communication Strategies

Communication strategies can be verbal, nonverbal, or visual. Integrating all the strategies
together will allow you to see the most success. This allows a business to meet employee
needs and increase workplace knowledge.
Verbal communication strategies

These can be broken down into the two categories of written and oral communication.
Written strategies consist of avenues such as e-mail, text, and chat. Examples that fall into
the oral category are phone calls, video chats, and face-to-face conversation.
Nonverbal communication strategies

These consist of mostly visual cues, such as body language, facial expressions, physical
distance between communicators, or the tone of your voice. These cues are typically not
intended. However, it is important to realize the message you are sending. Otherwise, you
may be saying one thing, yet the receiver is hearing another.
Visual communication strategies

These can be seen through signs, webpages, and illustrations. These strategies are used
in the workplace to draw attention and provide documentation. Human resources is required
to post certain visuals throughout the workplace to comply with safety laws.
Communication is considered one of the major aspects when it comes to real estate
business. It is essential for a real estate agent to understand the importance of
communication and be able to confidently utilise their knowledge and skills.
Skill in the art of successful communication and negotiation can make or break a career!
Every great real estate professional develops the ability to use open and closed questioning
techniques, to collect the information they need, while attentively listening to the client’s
needs.
There are numerous ways of learning how to communicate appropriately and ultimately this
is one area that you may already be experienced in. Negotiation is a form of communication
that may require more training.
Good negotiators are:
• flexible
• creative
• aware of themselves and others
• good planners
• honest
• win-win oriented
• good communicators.
Understanding when to listen and when to talk can be quite confusing so try to have a clear
idea of what you are offering and be consistent and prepared with a compromise option.
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Building a conversation
Simple response closed questions don’t leave much room for elaboration or really a full
response. These are often question using phrases like, did you, when, do you want to, will
you, have you, etc. Each of these just require a couple of words to answer and they don’t
transition well from one topic to another in a conversation.
Responses to open ended questions provide much more detail, thought, comments and
more information that can assist you in determining the person’s needs. Here are some
examples of typical questions in an open format:
• Tell me what you think about the price?
• What did you choose our agency?
• Why would you prefer to sell by private treaty rather than auction?
• How did you come to that price?
Establishing rapport
There are two types of questioning techniques that are important to know in order to keep
your conversations going and to build more rapport with others in conversation.
Open and Closed Questioning techniques

Open ended questions be answered with a one-word response. They require some thought
and provide details to reasonably answer the question.
Closed questions can be answered with a single one- or two-word response. They are often
a yes or no response and don’t leave much room for elaboration, interpretation or opinion.
Let others talk more than you

Open ended questions also ensure that you give others a chance to talk more than you. It
forces you to listen more in any conversation because you have to wait for a longer
response. You can still lead a conversation by steering with closed questions but at least
the open questions will allow room to elaborate.
Ask them to talk about themselves

Have people talk more about themselves, their thoughts and their feelings on a subject
shows that you have some genuine interest in them and care enough to want to take the
time to listen. This is immensely powerful to strengthen the relationship more.
Establishing client motives and expectations

Establishing and understanding the potential client’s motive for wanting to list a property for
sale or rent is very important to the Client/Agent relationship. Motives can be determined
by gathering information and by asking questions whenever contact is made with a client or
potential client.
The most common reasons for selling /renting could include:
• Another property has been purchased
• Upsizing or downsizing
• Retiring
• Job Transfers
• Marriage, separation or divorce
• Moving interstate or overseas
• Financial reasons
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It is important to build the client’s confidence in the ability of you and your agency to sell/rent
their property. To do this, the expectations of the client will need to be fully understood. So
you have done everything you can to help and they still don’t list with you. Don’t give up, it
maybe that you just didn’t impress them as much as the next agent.
Conflict
There will be times during your career when the communication is just not going well. It
could be the Receptionist apologising for the Agent who failed to turn up for their
appointment or the Property Management being abused by a tenant in the office, right in
front of your new clients.
Conflict is everywhere today, we see it on the roads, in pubs and even on the streets.
Conflict in real estate usually arises due to poor communication -- someone didn't say what
they meant to say or perhaps misunderstood what was intended. Before you allow a
situation to escalate, ask questions. It won't cause any loss of face, and it may result in a
quicker resolution.
Successful individuals seem to have an inherent understanding of what causes conflicts and
how to resolve them quickly. Here are 10 steps to ensure that if you are presented with a
situation that starts to get a little out of hand, you can professionally diffuse the situation and
move onto to a solution.
1: Ask questions
How are you feeling, what happened, can we sit down and discuss? These are all open-
ended questions that should assist in providing sufficient information to come up with a
resolution.
2: Analyse expectations
Often, conflicts develop as a result of unmet expectations on one side. If the other party
expected something they didn't get or something that didn't happen, the whole conversation
can become negative and closed. If a conversation seems to be getting rocky, take a step
back and review together with the other person to try to uncover what just occurred.
3: Recognize differing perspectives

Keep in mind that conflict may arise due to people having different perceptions. You, or the
other person, saw things differently. This happens most frequently when one is dealing with
someone from another organization, background, or culture. It's easy to believe that we all
see things the same way and then get derailed unexpectedly.
4: Identify mistakes
Honest and unintended mistakes frequently result in conflict. Before you let temperatures
rise, do a reality check of your understanding with the other person(s). Mistakes, even small
ones, can erode one's credibility -- someone made a mistake.
5: Watch out for emotional triggers

Beware of emotions. Fear of not being in control or being asked to accept less than what
was previously indicated, whether real or perceived, anger, and surprisingly even excitement
can all result in unintended conflict, which may cause your interaction to go downhill.
6: Focus on preventing escalation

Conflict resolutions always start with one or both parties making an honest attempt at
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avoiding further escalation. This recognition, even if only by one of those involved, often
causes a more objective review to occur.
7: Take action to control the situation

Escalation-avoidance tactics may involve one of more key steps including separating the
parties, changing the location of the discussion, signalling empathy to the other involved.
8: Commit to working it out

Take charge of the process by committing to reach a resolution. A powerful impact occurs
when one person makes this statement. It can turn down the temperature immediately.
9: De-escalate the conflict

De-escalation is next: This can be accomplished with a joint statement of the facts at hand,
always eliminating exaggerations, embellishments or personalities, which may inadvertently
apply judgments and re-created the cycle of escalation.
10: Stay calm

Cooler heads prevail in even the most difficult conflicts. Whether you're in a business or
personal situation, you can take control of it by keeping cool. And when you're maintaining
your calm, it will be easier for others involved to get back to the task at hand.
Continuing Professional Development

It is a mandatory requirement in some states for licence and certificate of registration holders
to undertake Continuing Professional Development (CPD).
For example, in NSW, all individuals who hold a class 1 licence, class 2 licence or a
certificate of registration must complete the CPD specified for their licence or certificate
category each year.
Failure to comply with your CPD requirements may result in the suspension or cancellation
of your licence or certificate.
Outside of mandatory continued professional development it is important to improve your

knowledge and understanding of the business and real estate practices, as legislation and
guidelines regularly change. Continuing professional development is typically a stipulated
membership requirement with industry bodies such as, REIQ.
There are numerous opportunities for agents to up-skill or improve their current skill level
with options varying from, audio, books, magazines or attending face to face and in-house
training sessions.
Training can be undertaken by Registered Training Organisations which deliver

qualifications using only qualified trainers to skills used in the office which are usually taught
by experienced agents currently working in the industry.
Other resources can be found on government websites, both state and federal. Here are a
few of the common sites that offer resources, factsheets and access to training.
The following websites list events organised, sponsored or endorsed by the state
Government departments and agencies, including statutory authorities that are aimed at
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providing advice and assistance to businesses and employees.
https://www.business.qld.gov.au/starting-business/advice-support/support/small-
business/online-training
Information for property investors on claimable tax deductions when investing in property.
www.ato.gov.au/General/Property/Residential-rental-properties
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REAA - CPPREP4001 - Student Learner Guide v1.5 (QLD)

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REAA - CPPREP4001 - Student Learner Guide v1.5 (QLD)

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CPPREP4001 - Prepare for professional practice in real estate (Release 1)

Student Learner Guide

Student Learner Guide

The importance of having legislation in the Real Estate environment is to:

The purpose of having regulations is that they provide:

Equal Opportunity and Anti-Discrimination

Each state and territory has also enacted anti-discrimination legislation.

In Queensland formally known as the Anti-Discrimination Commission Queensland, the

Fair Work Act 2009

Key Agencies and Industry Bodies

Office of Fair Trading (QLD)

Civil and Administrative Tribunal

Real Estate Institute of Australia (REIA)

Real Estate Institute of QLD (REIQ)

Property Council of Australia (PCA)

Real Estate Business – Ownership Structure

• Sole trader business structure - an individual trading on their own

Organisational Structures - Types of Real Estate Agency Models

Benefits of independent businesses:

Drawbacks of independent businesses:

Benefits of franchise businesses:

Drawbacks of franchise businesses:

Real Estate Services

• Project Management: The sale or leasing of multiple properties on behalf of a

Agency Personnel and Real Estate Job Roles

A Real Estate Agent

The Relationship between the Agent and Client

Real Estate Licensing and Registration Requirements

45 Eligibility for property agent licence

(2) An individual is to be taken to satisfy the requirement mentioned in subsection (1)(b) if

(3) A corporation is eligible to obtain an auctioneer licence only if a person in charge of

Property Occupations Act 2014

Commission Sharing/Licence Lending

64. Transfer of licence prohibited

65. Offence to sell, lend or borrow licence

Employee Classification Minimum weekly rate

Clerks—Private Sector Award 2010 [MA000002]– applies to Administrative employees

Commission, bonus or incentive payments

15.2 Commission, bonus or incentive payments

(b) The employee’s entitlement to commission, bonus or incentive payment only

16.1 Payment by wages with commission, bonus or incentive payments

16.2 Written agreements generally

16.7 Commission-only employment

(i) An employee engaged in property sales or commercial, industrial or retail

(ii) An employee paid on a commission-only basis must not be engaged as a

(b) Objective of commission-only employment

(c) Minimum requirements for commission-only employment

(d) Minimum income threshold amount (MITA)

Further information can be obtained from the following link

Work Health and Safety

Comply with Legislation

Employer Tax Obligations

Pay and entitlements

Legal obligations when training staff

Types of Communication Strategies

Verbal communication strategies

Nonverbal communication strategies

Visual communication strategies

Open and Closed Questioning techniques

Let others talk more than you

Ask them to talk about themselves

Establishing client motives and expectations

3: Recognize differing perspectives

5: Watch out for emotional triggers