CPPREP4105 Sell Property Assessment Task 1

ASSESSMENT TASK 1 – Multiple Choice Questions

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

1. By law, a privacy statement and a Statement of Information must be displayed and made available to every customer at open inspections.
   1. true
   2. false

2. An agent should provide recommendations to a vendor about property presentation to maximise buyer interest. Which of the following do you think should be addressed for open inspection days?
   1. keeping the house clean and tidy
   2. garden maintenance is kept up to date
   3. planting in bare garden patches
   4. paint work repairs
   5. fixing broken fences or stairs
   6. repainting the whole house inside and out

3. If an agency collects and records data/information on a person, under the Privacy Act 1988, can that person request that information?
   1. yes
   2. no

4. An agent is to act in the client’s best interest, which usually means that the agent’s role is to…
   1. get the best price for the buyer
   2. get the highest price for the vendor
   3. follow the client’s instructions
   4. all the above
   5. b and c

5. When selecting an appropriate time for an open home, what would be your advice to the vendor? Keeping in mind that the vendor needs to agree, it best to hold the inspection:
   1. on a weekend
   2. on a weekday during business hours
   3. after normal working hours
   4. with two (2) inspection times – i.e., morning and late afternoon
   5. all the above
   6. a, c, d only

6. When attending an open house on behalf of your vendor, prospective purchasers will arrive at the door. You should…
   (Select the most appropriate answer)

    

   1. invite them inside
   2. show them around
   3. ask for and record their contact details before they can enter the property

7. After an open house or property inspection, an agent should follow up prospective purchasers. This allows an agent to get feedback on:
   1. the property price
   2. whether they are planning to submit an offer
   3. whether they may be interested in other properties that are listed with the agency
   4. all above

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8. Following an inspection with potential buyers, real estate salespeople need to be able to advise the vendor of the outcome. You should be able to identify and establish:

(You may choose more than one option)

1. buyers who are just looking
2. buyers who are motivated
3. buyers who have not yet organised finance
4. buyers who are ready to decide
5. buyers’ reasons for not making an offer to purchase

9. When submitting an offer to the vendor, it is essential that the salesperson be able to identify the key decision-maker in the buying process. In which of the following situations would a salesperson need to exercise caution?
   1. when the salesperson is dealing with both intended buyers
   2. when the buyer is borrowing money from a relative
   3. when another party is to be involved in the purchase
   4. b and c

10. When the sales contracts are signed, the agent needs to ensure:
    1. each party has read and understood all the terms and conditions
    2. each party has properly signed it
    3. each party accepts all the terms and conditions of the offer
    4. each party fully complies with all its requirements
    5. the vendor makes the appropriate condition in the contract to pass any covenants or agreements onto the buyer
    6. the address and description of the property are correct
    7. deposit payment date is stated in the contract and is paid within a few days of the contract being finalised
    8. all the above

11. A salesperson should keep a record of all communications and decisions made with clients in a diary because it will:
    1. show the licensee in charge they have been using their time effectively
    2. provide an accurate record should evidence be required
    3. be beneficial for taxation reasons

12. There are many processes that need to be put in motion to prepare for a sale by public auction. At a post-listing meeting, which of the following should be discussed?
    1. the auction processes
    2. brief the vendors on their responsibilities
    3. explain the agent's role in the auction process
    4. auction day procedures
    5. all above
    6. a and c only

13. Which of the following documents are required to complete auction day activities?
    1. a register of all bidders at auction
    2. a completed and signed agency agreement
    3. receipt book
    4. house floorplan
    5. property brochure

14. Is it recommended agents provision for a final property viewing on auction day?

1. no
2. yes

15. Which of the following will assist bidders in the auction process?

1. welcome and introduction
2. auction announcement
3. clear instructions from the auctioneer and the Conditions of Sales of Freehold Property form before bidding starts
4. questions
5. none of the above

16. A property is passed in at auction because…

1. bidding stopped below the reserve price
2. the vendor refused to sell even though the reserve was reached
3. the last bid made before the auction stopped was a bid made by the auctioneer for the seller of the property
4. a and c

17. When a property is passed in, what happens?

1. the seller usually first negotiates with the highest bidder to attempt to secure a sale
2. the agent may seek offers from other interested parties
3. If the offers are close to the reserve, the auctioneer should indicate this, providing the vendor has issued instructions to do so
4. handled correctly, negotiations with the bidders often results in a sale
5. all above
6. b and c only

18. At the conclusion of the auction, it is necessary to complete the contract details…

(You may select more than one option)

1. same day
2. onsite
3. before purchaser leaves premises
4. before the under bidders have left in case the buyer decides not to proceed
5. all above

19. What procedures need to be undertaken by the agent post auction

1. completion of sales contract
2. receipts for deposit paid for purchase
3. arrange house cleaners
4. arrangements for settlement date
5. advertising auction results
6. arrange removalists
7. compile data on auction outcomes
8. compile records of attendance and interest
9. removal of auction sign at property

20. Prior to settlement, does the vendor need to allow the purchaser access for a final inspection of the property?
    1. yes, within seven days prior to settlement, to allow the purchaser to ensure the property is in the same condition as the day of sale
    2. no, there is never a requirement to allow the purchaser access to the property once the contract is signed

21. Before a purchaser signs the Contract for Sale of Land, the vendor must give the purchaser a copy of the signed Section 32 Vendor Statement.

1. true
2. false

22. A vendor may sign the vendor statement – which is to be given to the purchaser – by electronic signature.

1. true
2. false

23. If a vendor fails to provide a Section 32 Vendor Statement to the purchaser prior to signing the Contract for Sale of Land, what are the consequences?

1. nothing
2. the vendor will be subject to a fine
3. the purchaser may rescind or terminate the contract at any time before settlement

24. A due diligence checklist must be provided at an ‘open for inspection’.

1. true
2. false

25. Your purchaser has withdrawn from the sale and notification has been provided in writing within the required three (3) business days. What penalty could be payable by the purchaser?

1. $500 or 2% of the purchase price
2. nothing
3. $100 or 0.2% of the purchase price, whichever is greater
4. a and c only

26. To whom is the above penalty amount payable?

1. the State Government
2. the vendor
3. the selling agent