4703 Manage the Preparation of Real Estate Contracts

Guidance Information

1References

Consumer Guarantees Act 1993;

Contractual Remedies Act 1979;

Fair Trading Act 1986;

Financial Transactions Reporting Act 1996;

Human Rights Act 1993;

Land Transfer Act 1952;

Lawyers and Conveyancers Act 2006;

Overseas Investment Act 2005;

Overseas Investment Regulations 2005;

Privacy Act 1993;

Property Law Act 2007;

Real Estate Agents Act 2008;

Residential Tenancies Act 1986;

Securities Act 1978;

Unit Titles Act 2010;

and all subsequent amendments and replacements.

2Definitions

Common Law is also known as case law – judgements made by courts, rather than laws written by parliament. Judgements relating to the duties of an ‘agent’ may be applicable to this unit standard.

Industry requirements mean all actions must comply with relevant professional body standards, legislation, codes of professional conduct and client care, and approved guides. Legislation is available from and codes of professional conduct and client care, and approved guides are available from

Approved guides mean the two approved guides developed by the Real Estate Agents Authority covering an agency agreement and a sale and purchase agreement. These are available from

Act means Real Estate Agents Act 2008.

REINZ Useful Clauses and Authorities (Auckland: REINZ Publishing, 2000) is available from REINZ National Office or on

3Assessment

This unit standard must be assessed on the basis of evidence of demonstrated performance in the workplace or in simulated work situations designed to draw upon similar performance to that required in the workplace.

4Evidence must be presented of managing the preparation of contracts for at least two salespeople.

Outcomes and performance criteria

Outcome 1

Ensure the validity of real estate contracts.

Performance criteria

1.1Processes to support and facilitate the making of contracts are checked to ensure real estate contracts are valid in accordance with industry requirements.

Outcome 2

Identify breaches of contract and establish remedies.

Performance criteria

2.1Misrepresentations are identified in line with industry requirements.

Rangeincludes but is not limited to – innocent, negligent, fraudulent.

2.2Remedies for misrepresentations under the Contractual Remedies Act 1979, and actions that may be taken, are identified.

Rangemay include but is not limited to – damages, right of cancellation, notice of cancellation, relief granted by the courts.

2.3Breaches of contract by either client or customer after contracts have been entered into are identified in line with legal requirements.

Rangeincludes but is not limited to – repudiation, misrepresentation, breach of stipulation.

2.4Remedies for breaches after contracts have been entered into, and actions that may be taken, are identified in accordance with the Contractual Remedies Act 1979 and the Act.

Rangemay include but is not limited to – damages, relief granted by the courts, remedies specified by the parties.

Outcome 3

Ensure that conduct and practices of salespeople relating to real estate contracts meet the requirements of the Fair Trading Act 1986.

Performance criteria

3.1Conduct and practices of salespeople are checked to ensure that they meet the requirements of the Fair Trading Act 1986, and industry and office requirements.

3.2Penalties for breaches of the Fair Trading Act 1986 are identified.

Outcome 4

Enable staff to prepare real estate contracts.

Rangestaff include but are not limited to – salespeople and office support staff.

Performance criteria

4.1Information and systems are developed for staff, consistent with industry requirements, that enable staff to prepare real estate contracts.

4.2A training programme, developed to enable salespeople to prepare real estate contracts in accordance with legal, company, and industry requirements, is outlined.

Rangeincludes but is not limited to – supervision of salespeople and compliance with the Lawyers and Conveyancers Act 2006, and the Real Estate Agents Act 2008.

4.3Resources are developed to support staff in the work associated with the preparation of real estate contracts.

Rangechecking systems, legal clauses.

Outcome 5

Ensure that conduct and practices of salespeople relating to real estate contracts meet the requirements of the Consumer Guarantees Act 1993.

Performance criteria

5.1Conduct and practices are checked to ensure that they meet the Consumer Guarantees Act 1993 and industry requirements.

Rangeincludes but is not limited to – reasonable care and skill, competencies in terms of customer service and the preparation of contracts.

This unit standard is expiring. Assessment against the standard must take place by the last date for assessment set out below.

Status information and last date for assessment for superseded versions

This CMR can be accessed at