CPPREP4103 Establish vendor relationships

Table of Contents
Prospecting ......................................................................................................................2
Prospecting Plan ...................................................................................................................... 2
Prospecting Activities and Methods ...............................................................................................................3
Analyse and Review Prospecting Activities ............................................................................... 5
Vendor Requirements .......................................................................................................6
Agency Scope and Services ....................................................................................................... 6
Enquiring and Complaint Handling............................................................................................ 8
Enquiries .........................................................................................................................................................8
Complaints ......................................................................................................................................................8
Communication techniques to help: ..............................................................................................................9
Establishing Vendor Profile, Preferences and Expectations ...................................................... 10
Clarifying and recording vendor requirements ............................................................................................11
Recording Property Details ...........................................................................................................................12
Property Listing Presentation ..........................................................................................13
Steps to plan the listing presentation ..........................................................................................................13
Resources to Support Presentation ......................................................................................... 14
Documentation required for Listing ........................................................................................ 15
Agency Authorities .......................................................................................................................................15
Legislative requirements for Authorities ......................................................................................................17
Retention of documents ...............................................................................................................................19
Rental Property Listed for Sale .....................................................................................................................19
Present Listing Presentation ................................................................................................... 20
Principles of quality client service ................................................................................................................21
Client relationship management checklist ...................................................................................................22
Legislation Relating to the Sale of Property ............................................................................. 23
Australian Consumer & Competition Commission – ACCC ..........................................................................23
The Fair Trading Act, 2012 ............................................................................................................................24
Consumer Affairs Victoria (CAV)...................................................................................................................24
Estate Agents Act 1980, and Estate Agents Regulations, 2018 ....................................................................24
Conveyancers Act, 2006 ...............................................................................................................................25
Ethical and Regulatory standards............................................................................................ 25
Honesty, Fairness and Professionalism ........................................................................................................25
Unconscionable Conduct & Behaviour .........................................................................................................26
Misleading and Deceptive Conduct ..............................................................................................................26
Disclosures and Material Facts .....................................................................................................................28
Privacy...........................................................................................................................................................28
13 Australian Privacy Principles (APP) ..........................................................................................................29
Confidentiality ..............................................................................................................................................31
Conflict of interest ........................................................................................................................................32
Conduct Of Estate Agents and Agents’ Representatives .............................................................................34

Communication Plan.......................................................................................................39
6 Steps to Create a Communication Plan: ....................................................................................................39
Tailor the Communication Plan ....................................................................................................................41

Disclosure Notice ............................................................................................................42

CPPREP4103 Establish vendor relationships (VIC) 1

Learner Guide V 1.0
Prospecting

Think of prospecting as turning on the tap to fill the kitchen sink. If there is no water in the
pipes the sink does not fill – it is the same with selling properties – If you are not prospecting
at every opportunity your listings dry up and your purchasers stop ringing.
Some prospects (potential vendors) are a slow burn and may take many weeks, months or
even years to come to fruition whilst thankfully, others will be in a hurry to move.

These prospects can be graded in a database, so you know how much contact they need to
keep you front of mind. It could be a monthly newsletter or a weekly email or daily text.
Whichever method of contact you use make sure you keep the database updated, so if they
move from ‘cold’ to ‘warm’ - that should be noted.
A well-run database is what keeps an agency open when the business is no longer flooding in
the door – boom markets give a false sense of complacency that the work will always be there.
The agency should always be collecting data on where the enquiry is coming from, E.g.
website enquiries, Open House registers, signboards, letterbox drops, etc.

Client database example:

DATE ACTIVITY RESULT REVIEW

01/01/22 Sent monthly newsletter Nil 01/02/22

02/01/22 Replied to email enquiry on new listing Inspection booked 03/01/22

02/01/22 Updated database feedback from inspect. 2 inspection booked 04/01/22

nd

Prospecting Plan
As a real estate agent, you are likely already very busy, and it can be difficult to stay on top of
prospecting. In order to consistently maintain a full pipeline of leads, you will need to create
a prospecting plan. Following a structured plan will allow you to find solid and high-quality
leads on a predictable basis.
A prospecting plan should include the below steps:

CPPREP4103 Establish vendor relationships (VIC) 2

Learner Guide V 1.0
 o Identify your prospects: Who are you targeting? Do they live in a certain suburb? In a
certain school zone? Etc.

o Ways to approach your prospects: What prospecting activities or methods will you
use? Cold calling, networking at local events etc.

o Ways to engage your prospects: What questions will you ask? What communication
techniques will you use to interest the prospects?

o Set specific goals and expectations: How many solid leads do you want to generate
per call? Etc.

o Set points to review your prospecting activities and goals. It’s helpful to establish a
set of criteria that you can use to measure outcomes. This could include:
o Number of leads per prospecting activity
o Price of each lead (how much did that prospecting activity cost you?)
o Lead conversion rate
A CRM is useful to set reminders and keep notes.

You should schedule time every day to prospect – even if it’s an hour a day. You may have
lots of listings at one time, but once those sell, you will need new business.

Prospecting Activities and Methods

1. Cold calling
This is often the most time deficient method of gaining new business as it is likely to be a hit
& miss numbers game. Firstly, you have to find someone to answer the phone or the knock
at the door. Then find someone who owns their property and is interested in selling or
purchasing. Often if they engage in conversation, it’s because they simply want someone to
talk to, not necessarily that they intend giving you any business.

2. Testimonials
Used extensively in the market appraisal presentation and perhaps again in the listing
presentation, these third-party affirmations carry more weight than self-promotion,
especially as our society has the ‘get over yourself’ mentality.
Rather than promoting yourself, having testimonials from past clients helps to elevate your
credibility and will give prospects a sense of confidence in you. They are well worth their
weight in gold when used as a prospecting tool.
Use these where-ever you can, so don’t forget social media and the agency’s website.

CPPREP4103 Establish vendor relationships (VIC) 3

Learner Guide V 1.0
3. Referrals
When the name of a client has been given via a third party, with permission. Virtually, giving
you the foot in the door. This is a great tool to leverage off your past clients and current
networks. Prospects that come from referrals are usually very solid. A past client
will generally only bring you up if someone they are speaking with is talking about selling their
home. As they already want to sell, you’re halfway there!

4. Networking
Attending events such as Chambers of Commerce or collaborating and connecting through
social media with beneficial businesses or clients. Ensure you have a winning ‘elevator speech’
prepared for your introduction.

5. Direct marketing
Getting right to the source of your clientele. This could be targeting the viewers at an Open
House, of course after obtaining their express permission to do so. You can use brochures,
signboards and social media posts to attract new clients. Once marketing is up and running,
it requires little time and effort and works as a 24-hour prospecting tool.

6. Past Sales/Marketing
The long-established method of contacting the neighbours when a property is listed and sold
is still highly effective. ‘For Sale’ signs tend to ‘agitate’ even the most comfortable of
homeowner, especially when the neighbouring property sells for more than expected or in a
quick time frame. It’s the ‘I wonder if my home is worth that?’ thought, so prospecting in the
immediate area should be done immediately, while the neighbour is still intrigued.

7. Seasonal Marketing
These can be highly effective and retained by the resident. It could be the annual calendar
with your agency details, a themed quarterly newsletter (E.g. snowman for winter, daffodils
for spring). Others could contain simple recipes, again these could be monthly and follow the
same seasonal theme (E.g. how to prepare the Christmas turkey).

9. Letterbox drops
Similar to cold calling, this method requires time and effort and is likely to be hit & miss.
However, getting your name and number in peoples mail – especially in a neighbourhood that

CPPREP4103 Establish vendor relationships (VIC) 4

Learner Guide V 1.0
you are already selling a property in – can be beneficial to your prospecting and you may get
a few calls and leads from it.

10. Seminars / workshops

Take advantage of the variety of people who attend these events, such as property investors
looking to purchase or expand their portfolio.

11. Strategic partnerships

Someone who reciprocates with exchange of business, E.g. conveyancers, solicitors, building
and pest inspectors, mortgage brokers.
You should also remember to reach out to leads ASAP if they respond to any of your
prospecting methods. Leaving it even a few hours may mean they have found someone else
to list their property in that time. Generally speaking, if someone finally has the time in their
day to reach out to potential agents, they will keep calling until someone picks up.

When setting out to prospect or obtain new sales listings, you must do so according to
legislative and agency requirements. So, it will be necessary to:
o Ensure potential clients are not mislead (do not engage in misleading or deceptive
behaviour)
o Do not inflate potential prices that can be achieved (as per Underquoting laws)
o Ensure all agency policies and procedures are met
o Do not stalk or harass the potential clients

Analyse and Review Prospecting Activities

Regular attention to your success rates needs to take place to ensure you are getting the
returns on your physical efforts and financial outlay. Marketing material comes at a cost,
especially colour brochures, so return on investment (ROI) should be monitored.

A good way to keep track of your prospecting methods and their success is to keep record of
each activity and the result. Good agency practice is to set review points and have a template
or database you can keep the details in. An example is shown below.

Perhaps the marketing material is correct, but you are focusing in the wrong area. If the
demographic isn’t moving, then divert your efforts elsewhere. Monitoring your business

CPPREP4103 Establish vendor relationships (VIC) 5

Learner Guide V 1.0
development area (BDA) over a period of time should give you the statistics on how long
people stay in the area, the percentage of homeowners against tenants and so forth.

DATE ACTIVITY RESULT REVIEW

01/01/22 Cold Calling 4 appts booked 01/02/22

02/01/22 Marketing – Signboard 6 calls, 3 appt booked 03/01/22

02/01/22 Social media networking 2 enquiries 04/01/20

Vendor Requirements

Agency Scope and Services

When a potential vendor comes your way, you need to be sure you are across your agency’s
scope and services so that you can provide as much information as possible. Maybe they’ll
use your agencies property management services for another property they own, or they
might want to know more about the auctioneering services you provide. If you can show them
that you are knowledgeable in multiple areas, this will increase their confidence in you.

Various Types of Licensing

Detail services provided
Agency Services requirements
Residential sales List and sell land, homes, units, duplexes, Estate Agent Licence
apartments, etc generally no larger than 20 or Agents
Hectares. Representative
Residential Leasing and management of land, homes, Estate Agent Licence
property units, duplexes, apartments, etc generally no or Agents
management larger than 20 Hectares. Representative
Commercial/ List and sell warehouses, offices, factory bays, Estate Agent Licence
industrial/retail commercial land, shops in arcades or street. or Agents
sales Representative

CPPREP4103 Establish vendor relationships (VIC) 6

Learner Guide V 1.0
 Commercial Leasing and management of warehouses, Estate Agent Licence
/industrial/retail offices, factory bays, commercial land, shops in or Agents
property arcades or street. Representative
management
Auctioneering The Auctioneer controls the process to trade in Estate Agent Licence
property wherein potential buyers place or Agents
competitive bids either in an open or closed Representative
format. Licence marked
‘Auctioneer
accredited’.
Buyer’s agent A buyer's agent represents the buyer in a Estate Agent Licence
transaction. The buyer's agent has authority to or Agents
act on behalf of the buyer in negotiating a Representative.
Purchase and Sale Agreement with the seller's
agent.
Stock and station Carries on business as an auctioneer of rural Stock and Station
agent land or livestock or as an agent for: Agent’s Licence.
where the land concerned consists of rural land
any one or more of the things referred to in
paragraphs (a)-(d) of the
definition of "real estate agent", or
a livestock transaction
Business broker Also called business transfer agents, or Estate Agent Licence
intermediaries, assist buyers and sellers of or Agents
privately held businesses in the buying and Representative
selling process. They typically estimate the
value of the business; advertise it for sale with
or without disclosing its identity; handle the
initial potential buyer interviews, discussions,
and negotiations with prospective buyers;
facilitate the progress of the due diligence
investigation and generally assist with the
business sale.

CPPREP4103 Establish vendor relationships (VIC) 7

Learner Guide V 1.0
Enquiring and Complaint Handling

Enquiries
When a client makes an enquiry, they are effectively giving the agency an opportunity to
provide quality service. This may be the first point of contact with the organisation as well
and so making a good impression is essential. It is very important to ensure that all enquiries
are handled promptly to enable high-quality service delivery.

To be prompt is to be quick and responsive; making clients wait for a response to their enquiry
is a great way of losing clients or starting the relationship of badly. All agencies will have a set
of policies and procedures related to the timing in which enquiries should be responded to,
and it is important that the quality of service is upheld to these standards at all times.

The handling of enquiries includes all actions that need to be undertaken in order to respond
to the enquiry, and this may include:
o Provision of information
o Answering questions
o Meeting requests for call backs
o Providing a solution
o Taking the next step in customer service for a particular client

Enquiries may be received through:

o Email
o Facsimile
o Inspections
o Office
o Open houses
o Referrals
o Telephone
o Website

Complaints
The best way to minimise client frustration is to:
o keep calm

CPPREP4103 Establish vendor relationships (VIC) 8

Learner Guide V 1.0
 o show control and confidence without overpowering them as this will exacerbate the
situation,
o explain how you can assist them with the situation, but do not promise what you
cannot deliver,
o be honest in your dealings.

Welcome the complaint and see it as an opportunity for improvement. No one complains
without a reason. It may be a problem that needs to be resolved or it may be simply a
misunderstanding. Whatever the reason, it needs to be resolved.
Categorise the complaint as one of these 3:

Factual statement - Something has gone wrong, and it needs to be identified.

Misunderstanding - Rectify the misunderstanding so that it is clear to the client.
Unreasonable demands – This can be your clients’ expectation of additional services. He feels
you have let him down and wants the whole world to know. He just loves a stage show, so
the more people he can show his performance to, the better his performance. He wants to
see you jumping through hoops.

Communication techniques to help:

o Eye Contact (be genuine)
o Listening Skills
o Open Body Language
o Empathise with their situation
o Acknowledge their feelings
o Use affirming responses
o Acknowledge the problem and apologise if you, or the agency, are at fault
o Agree on a course of action
o Thank them for bringing it to your attention and reassure them you have understood

If they are at the front counter, or within ear shot of other customers, it might be best to
move them to a quiet area.

CPPREP4103 Establish vendor relationships (VIC) 9

Learner Guide V 1.0
Establishing Vendor Profile, Preferences and
Expectations

The most important thing to understand about real estate agents or sales representatives is
that they have been hired by the seller. Therefore, spending time and using the right
techniques to understand and record the vendors preferences and expectations is crucial.

IMPORTANT: The aim of the agent is to sell the property for the seller at the best possible
price, in the shortest possible time and under the best terms.

There are a range of needs or expectations the vendor will want to know in regard to the sale
of their property. These may include:

o The method of sale

o Price expectations
o Settlement period
o The timeframe for the sale

Understanding the purpose of listing the property for sale can aid in the clarification and
assessment of the vendors requirements in regard to the property sale.
Purposes of listing a property for sale include:

o Business reasons
o Deceased estate
o Investment
o Relocation
o Replacing or upgrading an existing property

CPPREP4103 Establish vendor relationships (VIC) 10

Learner Guide V 1.0
Clarifying and recording vendor requirements
The clarification of vendor requirements involves the confirming and establishing of all client
requirements in relation to the sale. This involves the analysis and investigation of these
requirements in order to gain a full understanding of what the client needs and expects.

Interpersonal communication techniques

It will be necessary to use a range of interpersonal techniques in order to clarify and
accurately assess the vendors requirements regarding the sale of their property.
Interpersonal communication techniques may include:

o Active listening: Active listening is the process of listening carefully and demonstrating
to the client that you are interested in what they are saying.

o Providing an opportunity for the vendor/s to clarify their understanding of the sales
process: It is important during communication with clients that they are provided with
the opportunity to clarify through explanation their own understanding of the sales
process.

o Seeking feedback from the vendor/s to confirm their own understanding of their
needs and expectations: It is important to seek a range of both qualitative and
quantitative feedback from the client to confirm their own understanding of their
needs and expectations.

o Summarising and paraphrasing to check understanding of the vendors message: The

process of summarising and paraphrasing is to repeat what the client said back to
them in order to demonstrate your understanding of what they have said in order to
provide the client with the opportunity to make further
clarifications.

o Using appropriate body language: Smiling, nodding and using professional and friendly
body language throughout the client interaction is a good interpersonal technique
which can be used to enhance the quality of communication.

CPPREP4103 Establish vendor relationships (VIC) 11

Learner Guide V 1.0
Recording Property Details
It is important to ensure that an appointment is made with the client to discuss the property
listing in line with agency practice requirements. At this appointment you can also inspect the
property and confirm and record the property details. It will be necessary to ensure that all
property details are recorded accurately and correctly across all statutory and agency forms
and records that are required.

Property details are the range of information about the property that needs to be
recorded in order to finalise and action the listing. These include:

o Address
o Property type
o Description
o Listing type
o Price
o Conditions
o Particulars
o Client requirements in relation to the property
o Any other required property information
o Details relating to the listing agreement

When ensuring that the recording of property details is correct and accurate, it will be
necessary to make sure that they meet the requirements of the following definitions:

o Correct: In order for details to be considered to be correctly recorded they must be

recorded in an accurate manner in the correct places in the correct format.

o Accurate: In order for the details to be considered to be accurate they must be free
from errors and be comprehensive in their nature.

CPPREP4103 Establish vendor relationships (VIC) 12

Learner Guide V 1.0
Property Listing Presentation
It is essential that your sales listing presentation is effectively conducted as this is an
opportunity to:

o Make a good impression on the client

o Provide a range of information
o Make a sale presentation
o Obtain the authority to list a property

Steps to plan the listing presentation

1. Decide what format the presentation will take. A format for presenting information may
include:
o A presentation prepared in advance:
 In document format
 Presentation software
 Overheads
 Other presentation methods
o A written report or proposal
o Verbal information presented directly to the client

2. Decide what information you will include.

o Your personal profile showing achievements, awards, etc
o Your vendors preferences to tailor the presentation to them and make it more
personal (e.g. Their timeframe for sale, their preferred marketing methods)
o Testimonials from past clients – and don’t forget to ask for one from this vendor too
o Your current listings and recently sold – hopefully, on a beautiful brochure
o Your agency’s fees and charges for the sale of their property (in Australia, agents fees
range from 1.6% - 4% of the total sale price)
o Your agency’s achievements, awards and local support and sponsorships – a good
corporate citizen
o Agency guides issued by Consumer Affairs Victoria and mandatory inclusions to the
Agreement.
o Exclusive listing authorities and auction authorities (leave the Open Listing and Sole
Listing forms in the bin but more on that below)

CPPREP4103 Establish vendor relationships (VIC) 13

Learner Guide V 1.0
 o Include what method of sale you believe the property should list under (private treaty,
auction etc)
o Advertising templates, E.g. Bronze, Silver, Gold, Platinum, Diamond

3. Decide how you will present. Every individual absorbs information differently. There are
three main types of client profiles:
o Tactile – wants to touch the brochures, flipcharts etc.
o Visual – wants to see the iPad presentation videos.
o Auditory – wants to hear the stories.

It’s difficult to cater to a mix of desires at your presentation but you need to be careful not to
bore one type by presenting to the other. For example, while some clients want to know your
success rates of similar properties, others will only care about what you can do for them. You
will need to use your presentation skills based on your ‘body language reading’ of the vendors
– i.e. visual, tactile, etc.

Resources to Support Presentation

It is essential that all the information that is presented during a presentation is
cohesive and makes the same point. Information provided should not be conflicting and
should align with the purpose of the presentation and support the reasons why the
listing should be made with your agency.

Maintaining cohesion with information provided can be achieved by:

o Establishing a main focus of the presentation and using all information to support this
focus
o Use the information within the presentation to establish reasons that the listing
should be given to your agency
o Use all information presented to demonstrate benefits of making the listing with your
agency to the client

Resources you can use to support your presentation include:

o Documentation and materials to promote the agent and agency:
o Marketing materials i.e., agent and agency profiles highlighting experience
o Past brochures/flyers or template
o Testimonials from past clients

CPPREP4103 Establish vendor relationships (VIC) 14

Learner Guide V 1.0
 o Past sales results

It is important that all the required listing documentation is prepared in case a client chooses
to list during or on completion of the presentation.

Documentation required for Listing

Due to the agency practices and the range of legislation that applies to the real estate
industry, there are many agency and statutory documents that are required in order to make
a listing.

Agency and statutory documentation may include:

o Agency authority documents
o Contracts for sale
o Agency documentation
o Approvals documents
o Fees and charges documentation
o Marketing strategy agreement forms

Agency Authorities
A written agency authority must be prepared for all services to be performed by an agent for
a client (principal) unless the services relate only to livestock. It is important to ensure the
agreement is prepared, signed, and served correctly – or you may lose your entitlement to
be paid commission and recoup expenses. Where the property is residential property, the
Agent cannot act on behalf of the Principal in respect to the sale of the property unless the
Agent has a copy of the proposed contract for sale for that property.

Types of Selling Agency Authorities:

o Exclusive Listing Authority (including Auction)

o Open Authority
o Sole Authority

You must also be able to prove that you discussed the form of the agreement with the
vendors. This would be whether they are signing an exclusive authority, an open listing, or
a sole listing authority.

CPPREP4103 Establish vendor relationships (VIC) 15

Learner Guide V 1.0
Exclusive Listing Authority:
Exclusive listing authorities are commonly used for the sale of residential property. In this kind
of agreement, the vendor gives exclusive rights to one agent to sell their property. This may
entitle the agent to be paid commission if the property is sold during the fixed term of the
agreement, even if the property is sold by the owner or by another agent.
The agent may also be entitled to commission if the property later sells to a person who
started negotiating for the property with the original agent.

Open Authority:
This form of authority allows the vendor to list with any number of agencies and retains the
right to sell the property privately. Only the successful selling agent is entitled to receive any
commission. Obviously, this form of listing is rare and not encouraged in the profession.

Sole Authority:
A listing authority is a sole listing authority if the agreement provides for only one agency who
will be entitled to commission on the happening of an event (whether the agent is the
effective cause of the happening of the event) unless the client (vendor) is the effective cause
of the happening of the event. This means the vendor is entitled to sell the property privately
and not pay the agent any commission.

Commission Payable:
An agent is not entitled to any commission or expenses for services performed for a client
unless the agreement:
o Contains terms required by the regulations
o Is signed by agent and client(s)
o A fully signed copy and be served on the client within 48 hours of the client having
signed it
o Discloses all rebates, discounts and commissions which will, or may be, received by
the agent in relation
o Outlines expenses payable by the client (residential property or rural land)

In limited circumstances, a court or tribunal can wholly or partly award commission to the
agent if the signed copy of the agreement was not correctly served.

Some examples of a rebate, discount or secret commission could be:

CPPREP4103 Establish vendor relationships (VIC) 16

Learner Guide V 1.0
 o $500 spotters fee from a mortgage broker
o Free lunches with the local solicitor / conveyancer for referral
o Free pest / building inspection of the agent’s property in exchange for referral

A sales authority will contain:

o Whether the property is to be sold by private sale or auction and, if by auction, the
auction date
o The negotiated commission and marketing expenses with GST set out separately
o When the commission is payable. This will depend upon the type of authority signed,
whether it is an ‘exclusive’ or ‘general’ authority
o The agent’s estimated selling price
o The authority period or amount of time the agency has to sell the property.

A sales authority must also include the following two statements:

o A rebate statement, stating whether or not the agent is likely to receive any rebates
from the advertising expenses
o A complaints statement, which explains that you can lodge a complaint with
Consumer Affairs Victoria if there is a dispute over commission or outgoings.

If the agency is going to share commission from the sale with anyone else the vendor must
be informed by one of the following:
o The sales authority will include a commission-sharing statement, or
o You may be given a separate statement before signing the authority, informing you of
any commission-sharing arrangements in place.
An exclusive sales authority has no cooling-off period.

Legislative requirements for Authorities

The front page of an Exclusive Listing Authority in Victoria, contains the below:

1. Names of parties to agreement

The agreement must specify the names of each of the parties to the agreement, including the
licensee.

CPPREP4103 Establish vendor relationships (VIC) 17

Learner Guide V 1.0
2. Information identifying the parties
The agreement must specify the principal’s address, the licensee’s licence number and any
business name under which the licensee conducts business.

3. Identification of property
The agreement must specify the address of the property to which the agreement applies or
contains a description of the property sufficient to clearly identify it.

4. Goods the Property is being sold with (Inclusions)

The agreement must specifiy the goods that will remain at the property and that the
purchaser will take ownership of when they buy. E.g. Dish washer, water tank, pool vacuum
etc.

7. Period of duration of the agreement

The agreement must contain a term indicating the period for which the agreement remains
in force or indicating that the agreement remains in force until terminated.

4. Method of sale
How the property will be sold – should be agreed upon by the agent and principal.

5. Price at which property is to be offered

If the agreement provides for the property to be offered for sale by private treaty, the
agreement must specify the price at which the property is to be offered. The agreement must
also specify the agent’s estimated opinion of sale price (usually a range).

6. Agents estimate of price

The agreement must provide the agents estimate of sale price. If Agents estimated sale
price is a range, the higher amount cannot exceed 10% of the lower amount.

6. Fees/Remuneration
The agreement must include the amount of the remuneration or the way in which it is to be
calculated (usually a percentage of the sales price. In Australia, it ranges from 1.6% - 4%) and
when the remuneration is payable (usually on settlement).

If the agreement provides for the payment of commission calculated as a percentage of the
sale price, the term must also specify the amount of remuneration to which the licensee will
be entitled calculated on the basis of a specified estimated sale price for the property.

CPPREP4103 Establish vendor relationships (VIC) 18

Learner Guide V 1.0
ALREADY ON THE MARKET:
You may enter into an appointment to act on behalf of a vendor whose property is already on
the market through another agent. However, the vendors are liable to pay two commissions
(or damages to the other agent). You can sign the agreement within 14 days of the expiry of
the other agent’s as long as the commencement period is the day after – e.g. the other agent’s
exclusive listing expires on 29th. Your listing can be signed after the 15th to commence on the
30th.

Note: if the agency is a member of the Real Estate Institute charging a vendor two
commissions is not permitted.

Retention of documents
The listing authority must be retained for no less than 7 years after the transaction has
completed, i.e. either the property is sold or withdrawn from sale. The agreement must be
kept available at the registered address of the business.
If the property is sold then the pertinent details and documents should be retained also. These
would include the Contract for Sale of Land, Certificate of Title, water board diagram,
Council’s 105 Certificate, trust account ledger, Orders on the Agent and other documentation
that would be relevant. Scanned copies would be acceptable provided they are clear and
devoid of any alteration.

Rental Property Listed for Sale

When rented residential premises are to be sold, the tenants must be told about this at least
14 days before the first inspection by the public. However, the tenants are free to grant earlier
access if they choose.
Under the Residential Tenancies Act 1997, the selling agent must try to come to an agreement
with the tenant about what days and times the premises will be open for inspection. Unless
the tenant agrees, access is not permitted on Sundays, public holidays or outside the hours
of 8am to 8pm.

What if the agent and tenant can’t agree on inspection times?

CPPREP4103 Establish vendor relationships (VIC) 19

Learner Guide V 1.0
The agent or landlord still has the right to show the property to potential buyers. They don’t
need the tenant’s consent, but the tenant must be given at least 48 hours’ notice. If
communication breaks down between the agent and tenant, a ruling can be sought through
the VIC Civil and Administrative Tribunal (VCAT). The order will often be to set two inspection
periods each week, such as one evening and on Saturday, however the parties can negotiate
different times between themselves. The tenant may ask for a rent reduction during the
inspection period to compensate them for being inconvenienced. It is up to the parties to
negotiate what the amount of any discount might be, if any.

Privacy and Quiet Enjoyment

When listing and attempting to sell a property which is tenanted remember, tenants have a
basic right to privacy and quiet enjoyment of the premises that must be respected by their
landlord, agent (especially salespeople), tradespeople, etc. and given the correct notices of
inspection.

Division 5 Section 67 – Tenant’s right to quiet enjoyment

A landlord must take all reasonable steps to ensure that the tenant has quiet enjoyment
of the rented premises during the tenancy agreement.

Maximum penalty: 60 units = $10,860

This section is a term of every residential tenancy agreement.

Present Listing Presentation

To assist in your presentation there are three sensory elements you can incorporate:

Tactile Visual Auditory

CPPREP4103 Establish vendor relationships (VIC) 20

Learner Guide V 1.0
Some clients will want to see the (tactile) flip chart or iPad (visual) presentation of your
successes and testimonials, recent sale property flyers and website printouts, flow charts on
expected days on market and so forth. It’s not uncommon for vendors to have their own flow
chart on the agents – just not all of them will tell you.

Other clients will only want to hear (auditory) about it and may be quickly put off by sitting at
the table flicking through page after page. While some clients want to know your success
rates of other properties, others will only care about what you can do for them. You will need
to use your presentation skills based on your “reading” of the vendors – i.e. visual, tactile, etc.

Principles of quality client service

o Provide value for money

o Provide knowledgeable, convenient, and efficient service
o Provide a consistent and reliable service with appropriate follow up
o Use time effectively and efficiently
o Provide an office environment which is welcoming and functional
o Make clients feel valued

Ask lots of questions, show that you are interested in their needs. For example:
o If you sold this house, what plans do you have and where are you thinking of going?
o Why are you thinking of selling your managed property?
o Why would you be selling such a beautiful house?

Body language:
Every day we subconsciously use body language (non-verbal communication) to assist in
communicating, hence it provides the other party with useful clues to what we are really
saying.
o Facial expressions: raising eyebrows, smiling and nodding
o Eye contact: focus, looking away or rolling your eyes is a sign of disrespect
o Posture: facing the speaker, leaning slightly towards them
o Gestures: hand movements, shrugging and pointing
o Proximity: shows respect to the clients’ space, too close can appear threatening.

Questions for understanding motivations:

o What do you need in a property?

CPPREP4103 Establish vendor relationships (VIC) 21

Learner Guide V 1.0
 o What price range are you looking to buy in?
o How soon do you need to move?
o What lifestyle are you seeking?

Listen carefully:
o Treat the client with good manners and respect
o Be thoughtful and courteous at all times
o Show the client that you are interested in their needs and desires
o Make them feel comfortable with you
o Explain your strategies for meeting your clients’ needs and the reasons for those
o Keep clarifying their expectations for a timely and successful conclusion.

Most complaints are able to be dealt with immediately as a result of the matter being drawn
to your attention. Think about the person who says nothing but is not happy with the way
you handled the sale of their property. These people do not voice their complaint to you or
your agency but tell many friends and family about their experience.
It’s not always what is said but the many messages that can be conveyed. Positive, responsive
skills are to be implemented as a result of these messages or the opportunity will be wasted.
Your communication skills are needed in an attempt to diffuse the situation by listening, using
empathy, let them have their say.
Remember, a promise broken is worse than a promise never being made.

Client relationship management checklist

o Ensure client loyalty strategies support repeat business

o Provide welcome gifts (settlement or new tenant) anniversary cards
o Structure services to emphasise client satisfaction and to maintain the agency’s
reputation for service
o Ensure client service strategies are able to be integrated into individual and team
delivery of agency services
o Ensure performance indicators enable policy review and activity adjustment to occur
o Provide timely, relevant, and up to date information to clients – e.g. changes to
legislation
o Provide information on client needs in a manner that improves client relations and the
quality of services

CPPREP4103 Establish vendor relationships (VIC) 22

Learner Guide V 1.0
 o Maintain client service records that provide an accurate and objective record of
communication with clients and other service providers
o Handle complaints in a manner that improves the agency’s reputation for quality
service and integrity, e.g. non-judgemental, non-discriminatory
o Ensure client satisfaction surveyed at regular intervals is able to be used to modify or
adjust client contact and agency marketing activities
o Ensure client feedback on quality of services is able to be used to improve
performance in client contact areas
o Ensure reviewed and updated information on agency services reflect current client
expectations and improve the agency’s image
o Ensure opportunities arising from information provided by clients are able to be used
to update the agency marketing strategy.

Legislation Relating to the Sale of Property

When dealing with vendors and selling property, agents must conduct themselves in
accordance with ethical and regulatory standards. Legislation, including the below, must be
followed:

Australian Consumer & Competition Commission – ACCC

Commonwealth Body
www.accc.gov.au
• Administers and enforces the trade practices Act 1974 based on
o Education – gives information to consumers via publication
o Negotiations – advising particular industries of their liabilities in relation to
any potential breaches of the Act
o Litigation – prosecutions for breaches of the Act

• Appeals against disciplinary procedures

• Administer the property services compensation fund
• Review statements of commissions claims

CPPREP4103 Establish vendor relationships (VIC) 23

Learner Guide V 1.0
The Fair Trading Act, 2012
State Act
https://www.legislation.vic.gov.au/in-force/acts/australian-consumer-law-and-fair-trading-
act- 2012/030

Mirrors the ACCC Act on a state level

Consumer Affairs Victoria (CAV)

State Body
https://www.consumer.vic.gov.au

o Performs functions as required in the Estate Agents Act 1980

o Applications for objecting and/or granting licence applications
o Complaints & disciplinary procedures
o Appeals against disciplinary procedures
o Administer the property services compensation fund
o Review statements of commissions claims

Estate Agents Act 1980, and Estate Agents Regulations, 2018

State Act and Regulations
https://www.legislation.vic.gov.au/in-force/acts/estate-agents-act-1980/128
http://classic.austlii.edu.au/au/legis/vic/num_reg/eacr2008n46o2008545/

o Sets standards and rules of conduct for property professionals

o Sets out requirements that are aimed at increasing consumer confidence
o Regulates by imposing annual Continuing Professional Development Programs
o Requirements for:
o licences
o certificates of registration
o auctioneer accreditation
o corporate licences

CPPREP4103 Establish vendor relationships (VIC) 24

Learner Guide V 1.0
The Act regulates agents’ conduct and competence required to carry out the profession. The
Act’s regulatory framework includes industry licensing, disciplinary procedures, and
consumer protections.
The Regulations provide the detail for agents to carry out their responsibilities under the Act.
It helps to ensure property agent business is ethical and financially accountable to support
the Act’s role in supporting fair dealings between agents and consumers.

Conveyancers Act, 2006

State Act
https://www.legislation.vic.gov.au/in-force/acts/conveyancers-act-2006/018

The first measure of consumer protection involves the fact that under the Conveyancers Act
2006, and its associated Regulations, the agent is required to have a copy of a full Contract
for the Sale of Land, at their office, available for perusal by prospective purchasers, before
they attempt to promote a property in any fashion, including word of mouth.

Ethical and Regulatory standards

The client in real estate is the person who pays the agency money. This is most often the
vendor or landlord however, buyer’s agents are becoming more popular. The customer is
the person who does business with you but does not pay you money. This is usually the
buyer or tenant. Some salespeople forget this and are more concerned about their buyer,
particularly where a sale is made of another agent’s listing (via conjunction). This is
sometimes because the salesperson might not deal directly with the vendor, and is
concerned to finalise a sale, they can tend to forget who they are representing.

IMPORTANT: Under the Competition and Consumer Act, the agent must be fair to the
purchaser, but should always remember their role is as a representative of, and act in the
best interests of, the principal.

Honesty, Fairness and Professionalism

Under the Competition and Consumer Act, an agent must AT ALL TIMES act honestly, fairly
and professionally with all parties in a transaction.

Honesty: An agent must not mislead or deceive any parties

CPPREP4103 Establish vendor relationships (VIC) 25

Learner Guide V 1.0
Confidentiality: An agent must not, AT ANY TIME, use or disclose any private information
obtained while acting on behalf of a client or dealing with a customer, unless:

a. The client or customer authorises disclosure, or

b. The agent is permitted or compelled by law to disclose.

Unconscionable Conduct & Behaviour

Section 52 of the ACCC prohibits businesses acting unconscionably in their dealings with
consumers. It sets out factors, similar to those in s. 52, that the court can consider when
deciding if conduct is unconscionable. Real estate agents and other associated industry
participants must take extra care with vulnerable clients. They should make sure clients
understand all documentation or terminology used, and advise them to get independent
advice if there is anything they don’t understand.

Unconscionable Conduct:

• The parties meet on unequal terms because of some special disadvantage of the
weaker party

That disadvantage is evident to the stronger party

• The stronger party takes unfair advantage of this situation to gain a beneficial
bargain

Unconscionable Behaviour:

• Fail to ensure clients with limited reading skills, or limited English, understand and
agree to contracts
• Use a friend or relative of the client to influence the client’s decision
• Take advantage of the client’s sickness, age or disabilities
• Include false statement in contracts

• Create one-sided contracts

Misleading and Deceptive Conduct

Incorporated into the role of a real estate agent is the task of advertising the property for
lease and sale, including by way of Auction.

CPPREP4103 Establish vendor relationships (VIC) 26

Learner Guide V 1.0
Section 18 of the Australian Consumer Law prohibits a person, in trade or commerce, from
engaging in misleading or deceptive conduct. In addition, section 30 of the Australian
Consumer Law applies the general rules about misleading conduct to the specific conditions
concerning interests in land, including the sale or grant, or the possible grant of an interest in
land, the promotion by any means of the sale or grant of an interest in land.

Section 30 provides that a person, in trade or commerce, must not make a false or misleading
representation about:
o the nature of the interest in the land
o the price payable for the land
o the location of the land
o the characteristics of the land
o the use to which the land is capable of being put or may lawfully be put, or
o the existence or availability of facilities associated with the land.

Section 42 of the Estate Agents Act 1980 covers misrepresentation by a licensee or registered
person.

Regardless of where the advertisement is to be placed, you have a duty of care to ensure:
o all the material is correct
o that it is truthful
o does not embellish the facts

Disclaimers will only help you part of the way and you must ensure the wording on the
disclaimer is the same size, font and colour of the advertisement. A disclaimer is useless if the
advertisement contains information that you KNOW is false.

“METRES NOT MINUTES”

CAV officers take strong action against agents who mislead the public via advertising. Beware
of using phrases such as “will never be built out” and the like. For example: ‘40 km to city
centre’ is preferable to ‘commuting distance to city’ or ‘primary/secondary schools 5 km’, is
preferable to ‘within walking distance of schools’.

CPPREP4103 Establish vendor relationships (VIC) 27

Learner Guide V 1.0
Disclosures and Material Facts
A material fact is a fact that would be important to a reasonable person in deciding whether
or not to proceed with a particular transaction. Material facts should be disclosed in the
advertising of a property, as to not engage any buyers or tenants who would otherwise, if
aware of the material fact, not be interested in the property. Some things that fall under
material facts are:

o Known pest infestation or building faults

(usually from a previous inspection report)
o Flood affectation
o Fire zone – is the land classified as ‘bush fire
prone land’? (tip: Check the Section 1.7 Council
Certificate)
o Illegal activity
o Death – in all forms (i.e. accidental; natural causes; self-inflicted; violent death)
o Asbestos – in all forms (e.g. friable / non friable – see more in the booklet)

The Material Facts Guidelines for Victoria can be found here.

https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-
property/preparing-to-sell-your-property

Privacy
Privacy and discretion are very important in the relationship with your client. You should
never reveal private information about a client, colleague or your organisation. Similarly,
information you have been given by the client should be used only for its particular purpose.

Agencies must ensure they are following the rules set out by the Privacy Act, including secure
storage of their data.

Privacy Act 1988 and Regulations 2001

www.austlii.edu.au/au/legis/cth/consol_act/pa1988108/
A real estate agency contains a lot of information that must be kept confidential including:
o Commercially sensitive information such as profit and loss statements, business plans
and tax information

CPPREP4103 Establish vendor relationships (VIC) 28

Learner Guide V 1.0
 o Personnel records, photos
o Personal information about clients, e.g., tenancy applications; reasons for moving;
Open registers
o Security details such as alarm codes

According to the Act, the objects are:

o to promote the protection of the privacy of individuals; and
o to recognise that the protection of the privacy of individuals is balanced with the
interests of entities in carrying out their functions or activities; and
o to provide the basis for nationally consistent regulation of privacy and the handling of
personal information; and
o to promote responsible and transparent handling of personal information by entities;
and
o to facilitate an efficient credit reporting system while ensuring that the privacy of
individuals is respected; and
o to facilitate the free flow of information across national borders while ensuring that
the privacy of individuals is respected; and
o to provide a means for individuals to complain about an alleged interference with their
privacy; and
o to implement Australia’s international obligation in relation to privacy.

On the 12 March 2014, a new set of principles covering the handling of personal information
by businesses was introduced. These changes to the Privacy Act are known as the:

13 Australian Privacy Principles (APP)

Part 1 – Consideration of Personal Information
1. Open and transparent management of personal information
Australian Privacy Principle 1—open and transparent management of personal information.
2. Anonymity and pseudonymity
Individuals must have the option of not identifying themselves, or of using a pseudonym,
when dealing with an APP entity in relation to a particular matter.

Part 2 – Collection of Personal Information

3. Collection of solicited personal information
An organisation must not collect personal information unless the information is necessary
for one or more of its functions or activities.

CPPREP4103 Establish vendor relationships (VIC) 29

Learner Guide V 1.0
4. Dealing with unsolicited personal information
The entity must, within a reasonable period after receiving the information, determine
whether or not the entity could have collected the information under Australian Privacy
Principle 3 if the entity had solicited the information.
5. Notification of the collection of personal information
At or before the time or, if that is not practicable, as soon as practicable after, an APP entity
collects personal information about an individual, the entity must take such steps (if any) as
are reasonable in the circumstances.

Part 3 – Dealing with Personal Information

6. Use and disclosure
An organisation must not use or disclose personal information about an individual for a
purpose (the secondary purpose) other than the primary purpose of collection unless the
individual would reasonably expect the organisation to use or disclose the information for
secondary purposes.

7. Direct marketing
If an organisation holds personal information about an individual, the organisation must not
use or disclose the information for the purpose of direct marketing.
8. Cross-border disclosure of information
The entity must take such steps as are reasonable in the circumstances to ensure that the
overseas recipient does not breach the Australian Privacy Principles (other than Australian
Privacy Principle 1) in relation to the information.
9. Adoption, use or disclosure of government related identifiers
An organisation must not adopt a government related identifier of an individual as its own
identifier of the individual unless: (a) the adoption of the government related identifier is
required or authorised by or under an Australian law or a court/tribunal order.

Part 4 – Integrity of Personal Information

10. Quality of personal information
An APP entity must take such steps (if any) as are reasonable in the circumstances to ensure
that the personal information that the entity collects is accurate, up to date and complete;
11. Data security
An organisation must take reasonable steps to protect the personal information it holds
from misuse and loss and from unauthorised access, modification or disclosure. They must

CPPREP4103 Establish vendor relationships (VIC) 30

Learner Guide V 1.0
also take reasonable steps to destroy or permanently de-identify personal information it no
longer needs.

Part 5—Access to, and Correction of, Personal Information

12. Access
If an organisation holds personal information about an individual, it must provide the
individual access to the information on request by the individual unless the information is
other than health information that would pose a serious or imminent threat to the life or
health of any individual or impede the application of law.
13. Correction of personal information
The entity must take such steps (if any) as are reasonable in the circumstances to correct
that information to ensure that, having regard to the purpose for which it is held, the
information is accurate, up to date, complete, relevant and not misleading.

These Privacy Principles:

1. Allow credit providers to access, use and disclose more credit information about
consumers
2. Provide consumers with more rights in relation to their credit information

The changes affect how businesses can:

o Handle and process personal information
o Use personal information for direct marketing
o Disclose personal information to people overseas

From the 12th March 2014, to comply with the Privacy Act businesses need to have a clear
and up to date privacy policy that is easily available. For details of all changes to the Privacy
Act, visit the Privacy law reform page on the OAIC website.

Confidentiality
Confidentiality is a state of keeping information about a person or an entity secret or private.
It is a requirement by law to ensure information shared between a client and seller is kept
private unless the same law says otherwise, which is often under exceptional circumstances.
It is industry standard that a confidentiality agreement document – or NDA (non-disclosure
agreement) is signed to show evidence that both parties agree to maintain confidentiality.

CPPREP4103 Establish vendor relationships (VIC) 31

Learner Guide V 1.0
A salesperson cannot disclose why the principal is selling as this may weaken his position in
the negotiating arena. The buyer having knowledge, say of a divorce or mortgagee in
possession, will ultimately offer a lesser price than if this information was not disclosed.
Should the principal decide to disclose such information, then the agent must have these
instructions in writing. Remember, you are working in an area where people’s private lives
and personal business affairs are intimately involved so you must always remain trustworthy.

The second point of the Estate Agents (Professional Conduct) Regulations sets out the
requirements of agents in relation to confidentiality.

Conflict of interest
A conflict of interest can come through one of the following:

Financial interest - A financial conflict of interest is one where the situation has the potential
for an agent to make a financial gain. This financial gain can be either a direct or an indirect
gain (for example an agent purchasing a property they have listed themselves).

Personal interest - A personal conflict of interest is one where an agent may further a
personal interest but receives no financial benefit from the exchange (for example the agent
assists a family member or friend to get business or recommends a tenant who is a personal
acquaintance).

Business interest - A business conflict of interest is one where the agent gains benefit to their
business (for example the agent discourages an owner from leasing a neighbouring property
to a competitor.).

Shareholder or officer of a company - A shareholder or officer conflict of interest is one where

the interests of a company the agent is associated with competes with a client's interests.

Beneficiary of a Trust - A beneficiary of a trust conflict of interest is one where the interests
of a Trust of which an agent is a beneficiary compete with the interests of the client.

“An agent must not accept an appointment to act, or continue to act, as an agent if doing so
would place the agent's interests in conflict with the client's interests.”

CPPREP4103 Establish vendor relationships (VIC) 32

Learner Guide V 1.0
For instance, when preparing a listing presentation. If the agent takes advantage of a client
and under lists the property to then sell to a friend or relative, or even themselves! then this
would be an unconscionable act and a conflict of interest for the agent to sell property to a
relative.

Exemption from section 55 requirements:

Estate agents and agents' representatives are exempt from section 55 requirements if they
can demonstrate that they have:

o Obtained the vendor's written acknowledgement that the vendor is aware that the
estate agent or agent's representative is interested in obtaining the interest and
consent to the estate agent or agent's representative obtaining that interest.
o Acted fairly and honestly in the transaction
o Ensured no commission or other reward is payable in the transaction, and
o Left the vendor in substantially as good a position as the vendor would be if the real
estate or business were sold at fair market value.

The written acknowledgement must be provided in the ‘Disclosure of Conflict of Interest to

Vendor’. This form is to be retained in the sales file. Penalties for breaches of Section 55
include up to two years gaol and a $43,617 fine. In addition, a court can order an estate agent
to pay over any commission received from the vendor.

Where a conflict of interest can be defined includes:

o You or your associate*
o A proprietary corporation of which you (or your associate) are a member
o A corporation over which you (either individually or jointly with your associates) or
your associate can exercise control. You can exercise control if you have the capacity
to determine the outcome of decisions about the company's financial and operating
policies
o A corporation of which you (or your associate) are an executive officer
o If the estate agent is a corporation, an executive officer of that corporation or an
associate of the executive officer
o The trustee of a discretionary trust of which you (or your associate) are a beneficiary
o A member of a firm or partnership of which you (or your associate) are also a member

CPPREP4103 Establish vendor relationships (VIC) 33

Learner Guide V 1.0
 o Another person carrying on a business for profit or gain where you or your associate
have a right to participate in the income or profits of that business.

Associates are:
Employee of an estate agent (when they act on behalf of the estate agent)
Spouse, domestic partner, parent, brother, sister or child of an estate agent
Child of an estate agent's spouse or domestic partner.

Conduct Of Estate Agents and Agents’ Representatives

To view the Estate Agents (Professional Conduct) Regulations (2018) in full:

https://www.legislation.vic.gov.au/in-force/acts/sale-land-act-1962/165

Knowledge of the law

An estate agent and an agent's representative must have a working knowledge of—
a) the Act and any regulations made under the Act; and
b) any other laws relevant to the functions performed by the estate agent and agent's
representative.

Confidential information
An estate agent and an agent's representative must not at any time use or disclose any
confidential information obtained while acting on behalf of a principal, unless authorised by
the principal or required by law to do so.

Commissions
1. An estate agent or an agent's representative must not—
a) accept commission from the seller of real estate or a business when engaged to
purchase that real estate or business on behalf of a purchaser; or
b) accept commission from the purchaser of real estate or a business when engaged
to sell that real estate or business on behalf of the seller; or
c) accept commission from a rental provider (landlord) when engaged by a person to
obtain a tenancy of the rental provider’s (landlord) real estate or business on
behalf of that person; or

CPPREP4103 Establish vendor relationships (VIC) 34

Learner Guide V 1.0
 d) accept commission from a person who wishes to obtain a tenancy agreement
when engaged to obtain a tenancy for the real estate or a business on behalf of
the rental provider (landlord) of the real estate or business.
2. An estate agent or an agent's representative must not—
a) in the case of an estate agent, induce or attempt to induce a person to enter into
a contract or agreement with the agent; or
b) in the case of an agent's representative, induce or attempt to induce a person to
enter into a contract or agreement with the licenced estate agent for whom the
agent's representative is performing the functions of an estate agent—
that could make the person liable to pay commission to more than one estate
agent in relation to the sale or lease of any real estate or business, without giving
clear written advice to the person of the potential liability to pay more than one
commission.

Acting in accordance with principal's instructions

An estate agent or an agent's representative must act in accordance with the lawful
instructions of a principal, except if it is contrary to good conduct as an estate agent or agent's
representative.

Fairness and honesty

a) An estate agent or an agent's representative must at all times act fairly, honestly, in
good faith and to the best of the estate agents or agent's representative's knowledge
and ability in performing the functions of an estate agent or agent's representative.
b) An estate agent or an agent's representative must not mislead a tenant about a rental
provider’s (landlord) instructions.
c) An estate agent or an agent's representative must not mislead a purchaser or
prospective purchaser about a seller's instructions.

Acting in principal's best interests.

An estate agent or an agent's representative must always act in a principal's best interests
except if it is unlawful, unreasonable, improper or contrary to the instructions of the principal,
for whom the estate agent or agent's representative is acting, to do so.

Potential conflict of interest

1. An estate agent must not accept an engagement from, or act for, a person if it would

CPPREP4103 Establish vendor relationships (VIC) 35

Learner Guide V 1.0
 place the agent's interests in conflict with those of the person.
2. An agent's representative must not act for a principal if it would place the agent's
representative's interests in conflict with those of the principal.
3. If an estate agent or an agent's representative recommends a supplier of goods and
services to a principal, the estate agent or agent's representative must disclose to the
principal—
a) in the case of an estate agent, any personal or commercial relationship
between the estate agent or the agent's representative and the supplier of
the goods and services; or
b) in the case of an agent's representative, any personal or commercial
relationship between the agent's representative, the licenced estate agent
(for whom the agent's representative is performing the functions of an
estate agent) and the supplier of the goods and services.

Good practice of estate agents and agents' representatives

1. An estate agent or an agent's representative must exercise all due skill, care and
diligence in performing the functions of an estate agent or an agent's representative
(as the case requires).
2. An estate agent or an agent's representative must not engage in conduct that is
unprofessional or detrimental to the reputation or interests of the estate agency
industry.
3. An estate agent or an agent's representative must complete all work on behalf of a
principal as soon as is reasonably possible.
4. An estate agent or an agent's representative must be timely and courteous in all
dealings in the course of carrying out the duties of an estate agent or an agent's
representative.
5. Unless a rental provider (landlord) otherwise instructs in writing, if—
a) an estate agent is managing a rental property on behalf of a rental provider
(landlord), the estate agent must promptly notify the rental provider (landlord)
of any breach of a tenancy agreement; or
b) an agent's representative, who is acting for or on behalf of a licenced estate
agent, is managing a rental property on behalf of a rental provider (landlord),

CPPREP4103 Establish vendor relationships (VIC) 36

Learner Guide V 1.0
 the agent's representative must promptly notify the rental provider (landlord)
of any breach of a tenancy agreement.
6. If an estate agent is acting for the seller of, or if the principal of an agent's
representative is the seller of, real estate or a business and a contract of sale for the
real estate or business has been entered into and, contrary to the terms of the
contract, a deposit has not been received, the estate agent or agent's representative
must immediately inform the seller of this fact.

Estate agent or agent's representative not to induce breach of contract

An estate agent or an agent's representative must not knowingly induce or attempt to induce
a person to breach a contract of sale, letting or agency or a contract of any other kind relating
to the estate agency practice.

Estate agent or agent's representative to ascertain information

An estate agent or an agent's representative must make all reasonable enquiries to ascertain
the information relevant to a service or transaction relating to the estate agency practice to
be provided or performed by the estate agent or agent's representative.
Communication of offers by estate agent or agent's representative
1. Unless otherwise instructed in writing by a principal, an estate agent or an agent's
representative must communicate to the principal all offers to purchase, sell or lease
real estate or a business, made to the estate agent or agent's representative, whether
those offers were made verbally or in writing, as soon as possible after the offer has
been made.
2. If, in accordance with the principal's written instructions, the estate agent or agent's
representative is not going to inform the principal of an offer, the estate agent or
agent's representative must inform the person who made the offer that the offer will
not be submitted to the principal.

Bids and offers at public auctions of land

Despite regulation 16, an estate agent or an agent's representative must not communicate to
any person any bid or offer for a property that is made after the property has been knocked
down to the successful bidder at a public auction for the sale of land, unless the vendor or
successful bidder at the auction refuses to sign the contract of sale following the auction.

Maintenance or repairs of residential rental property

1. This regulation applies if—

CPPREP4103 Establish vendor relationships (VIC) 37

Learner Guide V 1.0
 a) an estate agent, or an agent's representative who is acting for or on behalf of a
licensed estate agent, manages a residential rental property on behalf of a rental
provider (landlord); and
b) The scope of the engagement to manage the property includes management of
the maintenance or repair of the residential property.
2. The estate agent or agent's representative must promptly—
a) respond to and, subject to the lawful instructions of the rental provider (landlord),
attend to all requests by a tenant for maintenance of, or repairs to, the property;
and
b) notify the tenant of the rental provider (landlord)'s response or otherwise to a
request by a tenant for maintenance of, or repairs to, the property.
3. If the rental provider (landlord)has instructed that maintenance or a repair not be
carried out, the estate agent or agent's representative must inform the rental provider
(landlord) if the landlord's failure to carry out the maintenance or repair would
constitute a breach of—
a) any tenancy agreement in force in relation to the property; or
b) the Residential Tenancies Act 1997.

Acting for purchaser as buyer's agent

An estate agent, or an agent's representative acting on behalf of a purchaser as a buyer's
agent, must keep the purchaser informed of each stage of the negotiation of a purchase price,
as instructed by the purchaser.

CPPREP4103 Establish vendor relationships (VIC) 38

Learner Guide V 1.0
Communication Plan
Creating an effective communication plan is crucial in maintaining good relationships with
vendors. This will ensure the sales process goes smoothly and can create the opportunity for
future referrals from satisfied vendors.

6 Steps to Create a Communication Plan:

1. Perform a situation analysis

You need to be sure of the situation at hand, if not, you won’t be able to create the most
effective communication strategy to approach and deal with your clients. This may involve
asking your vendors a few questions about their property, what they want to get out of the
sale and how involved they would like to be.

Conduct an audit to evaluate where you currently stand in terms of communications. You
need to gather and analyse all relevant information within your company.
To conduct your own communications audit, you may need to do the following:
o Brainstorm with communication staff
o Conduct surveys and focus groups
o Talk to other departments in your company.

2. Define your objectives

After you collect and evaluate all information, define your overall communications objectives.
What are the results you want to achieve? What would you like your vendors to say about
your communication in the future? What do you want to accomplish by implementing this
communication plan? Your objectives should be SMART:
o Specific
o Measurable
o Achievable
o Realistic
o Time-focused.

3. Define your key audiences

You need to know who you are delivering your messages toward. List all the key audiences of

CPPREP4103 Establish vendor relationships (VIC) 39

Learner Guide V 1.0
your organisation.
These may include the following:
o Clients (vendors)
o Related associations
o Local government officials
o Media representatives

4. Identify media channels

Plan to deliver your messages to your key recipients through appropriate media channels.
Decide which media channels would be the most effective to get your message delivered to
your target audiences. This may be dependable on their demographic or line of work.

5. Establish a timetable
In order to achieve your communications objectives, you need to plan and time your steps for
the best results. Based on your research and your resources, develop a solid timing strategy
to execute the steps of your communication plan.

6. Evaluate the results

It’s always important to measure your results to understand whether you achieved your
objectives. If you aren’t satisfied with the results, make necessary adjustments in order to
perform better next time. Your evaluation might take the form of the following:
o Annual reports.
o Monthly reports.
o Progress reports.
o Reports from other departments.
Developing a written communication plan will take some effort – and it’s worth it. A
communication plan is your main tool for successfully delivering your messages to your key
audiences in order to develop your mutually beneficial relationships. A well-written plan will
help you achieve your business objectives and maximize your performance.
Source of information: Axia Public Relations Website

CPPREP4103 Establish vendor relationships (VIC) 40

Learner Guide V 1.0
Tailor the Communication Plan
Now we know how to create a communication plan let us look at how we can tailor-make a
communication plan for our new vendors.
Here are some points to consider:
o Do they want a daily update or is twice weekly sufficient, perhaps after Open Home
inspections?
o Do they prefer text, email or a phone call?
o Who are we contacting – all parties or just the nominated individual (E.g. executor of
the will)?
o Identify and clarify their individual issues or needs
o Use appropriate language and active listening techniques
o Explore and discuss options with new vendor
o Check the viability of a possible solution of any obstacle
o Record the agreed outcome
o Decide on follow up action and explain this to your client

The final important parts of a communication plan is who needs to know about it and where
can it be found? E.g. the person in charge of administrative duties would need to be involved
if they are the ones sending out the information and the marketing person probably also
needs to know. In smaller agencies these roles could all fall on to the listing agent but in much
bigger agencies there could be several people involved.
The details therefore need to be well documented in the file and all relevant diaries.

CPPREP4103 Establish vendor relationships (VIC) 41

Learner Guide V 1.0
Disclosure Notice

The material contained within this resource book is written and published as a learning guide
to participants and is not intended to be formal advice on the law. You should seek your own
independent advice in relation to any issues contained in the subject matter, and for any
update of the Estate Agents Act 1980 and Regulations.
Entry Education will not be liable for any loss or liability sustained by reason as a result of the
reader relying on the content.

CPPREP4103 Establish vendor relationships (VIC) 42

Learner Guide V 1.0