CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)
Assessment Questions
RTO 32426
CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)
What you need to do:
Answer the questions below by writing in the space provided.
You are required to answer all questions correctly. If correct, you will see ‘competent’
written in your grades section next to the assessment name. If incorrect, you will see ‘not
yet competent’ and receive feedback in your grades section and you will be required to
resubmit your work.
What you will need:
Use the material provided in your learners guides and additional resources section as well as
research materials such as books, internet, magazines, workplace documentation etc.
Remember that the assessment is completely self-paced and open book, so you are able to
use whatever resources you have to answer the questions.
What you need to submit:
Your answers to these questions.
CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)
Assessment Questions
Question 1
Complete the following table by inserting the name of at least 2 pieces of legislation relevant
to the areas listed as relevant to your state/territory and identify whether the legislation is
at the state or federal level (in brackets).

CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)
Question 2
What is the role of the Australian Competition and Consumer Commission?
The main role of the Australian Competition and Consumer Commission is to ensure that
individuals and business comply with the Commonwealth competition, fair- trading and
consumer protection laws.
In fair trading and consumer protection the ACCC’s role complements that of the state and
territory consumer affairs agencies.
Question 3
Consider the relevance of consumer protection requirements and identify (2) risks for the
following;

3.1 Consumer (Buyer/tenant/Seller or Landlord)
A. Buying false advertised products
B. Dealing with a non -genuine business.
3.2 Risk to the Agency
A. Misleading Advertisement of Land
B. Future Representations
3.3 Risk to the Industry
A. Misleading and Deceptive Conduct
B. Unconscionable Conduct

B. Injury due to defect products
Question 4
What is an ‘Authority to act’?
An Authority to Act is a document that provides another person with authority to act on
your behalf. This is different from a Power of Attorney as it isn't defined as a legal
document. An authority to act is also for a single occasion rather than ongoing
authority across multiple matters.
CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)
Question 5
In 100 – 200 words, explain the impact of fraudulent activities on consumer and agency.
In law, fraud is deliberate deception to secure unfair or unlawful gain, or to deprive a victim
of a legal right and conducting of such activities is called fraudulent activities. The main
impact of fraudulent activities on consumer and agency are;
- Decrease in the “Net Worth “of the business:
In Real Estate Business the agent’s reputation is one of the most valuable
assets. Without the good reputation company can’t run for very long. The publicity affects
the business a lot and if the company got involved in the fraudulent activities no one wants
to deal with that company resulting loss of trust from the consumer and landlords.
For E.g.: Selling the property with misleading and false advertisement.
- Prosecution/ Litigation Leading to Fines and or Compensation Payments:
Fines and compensation payments as well as prison in sever case are the
obvious consequences of fraudulent activities. If Agents deliberately sold the very bad
condition house without notifying the consumer and consumer case against the agency
for fraud, then Agency have to pay a heavy fine to the consumer as well as legal fees.
- Loss of Licences:
In some cases, Agency might loss licence or Certificate of Registration which means
they are out of business. If there is a frequent case of fraudulent activities, then court may
order to take your licences under the NSW Fair Trading ACT or Australian Consumer Law.
- Goodwill Value (Damage to Reputation):
As I mentioned before, Goodwill Value is directly related to the publicity of the
business. If business got bad publicity due to Fraud cases then no body wants to deal with
that business, leading to lose its Goodwill.
For e.g. If there is one Agency who always charge high bond from leaving tenant for the
things which was bad from before, then nobody wants to rent the property through that
agent.
- Physical Injury to a Person:
In some cases, physical injury or accident also may happen due to fraudulent
activities like disclosing private information of consumer to third party, selling or renting
unfit property, etc. Fraudulent activities can be very dangerous which might lead accident,
death, cyber-crimes, theft of personal identity as well as privacy of consumer.
As agency, staff deals with lots of personal information of consumers so they should
disclose this matter to third parties for their gain, and also they need to check the
consumers information is genuine or fake, like fraud finance report, fraud cards, etc.
CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)
-Physical Damage to a Property:
The most obvious impact of fraudulent activities is physical damage of
property. In some cases, the tenant use fraud identity to rent out the house and might
involved in many crimes like drug trafficking as well damaging the property and
community.
There was a case, one tenant used fake identity to rent out the house and they used
it to grow and supply weed, when the police caught them and the property was very bad
condition.
Question 6
Identify a minimum of four risks that may impact on an agency. Outline the strategies that
you would recommend to manage each risk.

Question 7
List and explain (2) penalties or disciplinary actions that can be taken by the Office of Fair
Trading for breaches of codes and standards for ethical practice in real estate.
Where Consumers believe that there has been a breach of the acts, their first line of
complaint is normally through their state’s Office of Fair Trading. Where appropriate the
OFT will seek to prosecute, or will advise the consumer to take action in the Tribunal or
the Civil Courts.
CPPREP4002 - Access and interpret ethical practice in real estate (Release 1)
1) A breach of the ACL is a severe offence and has maximum penalties to matc