Stage 2 - Self Assessment Answers
RISKS FOR REAL ESTATE AGENTS Section 1
SELF ASSESSMENT ANSWERS
IPE Copyright
Page 1
ACTIVITY 1 –Risks for estate agents
Who is affected?
In each of the following situations, identify who is and could be affected. Suggest reasons for the situation arising and what could have been done to prevent the situation.
SITUATION 1 – There was a fire in a house managed by your agency. The smoke alarm did not go off and the tenant, who was asleep at the time of the fire, suffered severe burns before being rescued.
1. Who is or could be affected?
Identify various people and organizations that could be effected by this event. Some appropriate answers could be:
a) The Tenant – physical injury / loss of income / psychological injury
b) The Owner – possible law suit / damage to property / vacancy
c) Agents – possible law suit from tenant, owner or insurer
d) Electrician – law suite for negligence
e) Insurance Company – possible no recoverable payout
2. Why did the situation arise?
List possible causes for the event taking place. These may include:
a) Tenant did not replace battery / removed flat battery from detector
b) Agent / Owner / other party removed flat battery and did not replace
c) Agent / Owner did not identify in lease that tenant MUST replace flat battery
d) Defective smoke alarm (manufacturing fault)
e) Defective smoke alarm (hard wiring problem)
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RISKS FOR REAL ESTATE AGENTS Section 1
SELF ASSESSMENT ANSWERS
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Page 2
3. What could have been done to prevent the situation?
Examples of actions which may have prevented the situation may include:
a) Lease Agreement specifies Tenant as responsible to replace batteries
b) Agent / Owner programs to replace battery each 6 months (each ingoing and periodic inspection)
c) Agent / Owner tests smoke detector operation at each ingoing & periodic inspection
ACTIVITY 2 – Risks for estate agents
1. What is risk? Risk is the chance of something happening that may or will impact on objectives of the agency and it’s stakeholders. It is measured in terms of likelihood and consequences.
2. What are 2 types of people who can be exposed to risk as a result of agency operations?
a) Anyone to whom the agency owes a duty of care who may be injured or suffer a loss as a result of an agency’s operations, for example, landlords, tenants, vendors, purchasers, employees or the general public.
b) People with a financial interest in the agency, for example, the owners, directors or financial institutions
3. What is meant by the term ‘duty of care’?
Duty of care refers to the obligation owed to anyone who it is reasonably foreseeable would be injured or suffer a loss as a result of a lack of care.
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RISKS FOR REAL ESTATE AGENTS Section 1
SELF ASSESSMENT ANSWERS
IPE Copyright
Page 3
4. Give an example of someone affected by agency operations as a result of the agency failing in its duty of care.
There is a wide range of possible answers for this question. One example would be where an employee is injured at work as a result of an agency failing to provide a safe work environment.
5. List 3 potential impacts of risk for agencies.
a) Injury or death of someone to whom the agency owed a duty of care
b) Loss of reputation
c) Financial loss
d) Loss of licence / disciplinary action against agent
6. List 2 potential impacts of risk for people as a result of dealing with agencies?
a) Personal injury or death
b) Loss of some sort – normally financial
7. What are the 4 stages in the risk management process?
Stage 1 – identify risks
Stage 2 – analyse risks
Stage 3 – control risks
Stage 4 – monitor and review
8. Why should an agency have a risk management process?
An agency should have a risk management process as a means of eliminating or minimizing risk for the agency. A by-product of this will be a reduction in risk for people who deal with the agency.
END of SELF ASSESSMENT
CHECK YOUR SELF ASSESSMENT ANSWERS
SELF ASSESSMENT ANSWERS
IPE Copyright
Page 1
ACTIVITY 1 –Risks for estate agents
Who is affected?
In each of the following situations, identify who is and could be affected. Suggest reasons for the situation arising and what could have been done to prevent the situation.
SITUATION 1 – There was a fire in a house managed by your agency. The smoke alarm did not go off and the tenant, who was asleep at the time of the fire, suffered severe burns before being rescued.
1. Who is or could be affected?
Identify various people and organizations that could be effected by this event. Some appropriate answers could be:
a) The Tenant – physical injury / loss of income / psychological injury
b) The Owner – possible law suit / damage to property / vacancy
c) Agents – possible law suit from tenant, owner or insurer
d) Electrician – law suite for negligence
e) Insurance Company – possible no recoverable payout
2. Why did the situation arise?
List possible causes for the event taking place. These may include:
a) Tenant did not replace battery / removed flat battery from detector
b) Agent / Owner / other party removed flat battery and did not replace
c) Agent / Owner did not identify in lease that tenant MUST replace flat battery
d) Defective smoke alarm (manufacturing fault)
e) Defective smoke alarm (hard wiring problem)
CHECK YOUR SELF ASSESSMENT ANSWERS
RISKS FOR REAL ESTATE AGENTS Section 1
SELF ASSESSMENT ANSWERS
IPE Copyright
Page 2
3. What could have been done to prevent the situation?
Examples of actions which may have prevented the situation may include:
a) Lease Agreement specifies Tenant as responsible to replace batteries
b) Agent / Owner programs to replace battery each 6 months (each ingoing and periodic inspection)
c) Agent / Owner tests smoke detector operation at each ingoing & periodic inspection
ACTIVITY 2 – Risks for estate agents
1. What is risk? Risk is the chance of something happening that may or will impact on objectives of the agency and it’s stakeholders. It is measured in terms of likelihood and consequences.
2. What are 2 types of people who can be exposed to risk as a result of agency operations?
a) Anyone to whom the agency owes a duty of care who may be injured or suffer a loss as a result of an agency’s operations, for example, landlords, tenants, vendors, purchasers, employees or the general public.
b) People with a financial interest in the agency, for example, the owners, directors or financial institutions
3. What is meant by the term ‘duty of care’?
Duty of care refers to the obligation owed to anyone who it is reasonably foreseeable would be injured or suffer a loss as a result of a lack of care.
CHECK YOUR SELF ASSESSMENT ANSWERS
RISKS FOR REAL ESTATE AGENTS Section 1
SELF ASSESSMENT ANSWERS
IPE Copyright
Page 3
4. Give an example of someone affected by agency operations as a result of the agency failing in its duty of care.
There is a wide range of possible answers for this question. One example would be where an employee is injured at work as a result of an agency failing to provide a safe work environment.
5. List 3 potential impacts of risk for agencies.
a) Injury or death of someone to whom the agency owed a duty of care
b) Loss of reputation
c) Financial loss
d) Loss of licence / disciplinary action against agent
6. List 2 potential impacts of risk for people as a result of dealing with agencies?
a) Personal injury or death
b) Loss of some sort – normally financial
7. What are the 4 stages in the risk management process?
Stage 1 – identify risks
Stage 2 – analyse risks
Stage 3 – control risks
Stage 4 – monitor and review
8. Why should an agency have a risk management process?
An agency should have a risk management process as a means of eliminating or minimizing risk for the agency. A by-product of this will be a reduction in risk for people who deal with the agency.
END of SELF ASSESSMENT
CHECK YOUR SELF ASSESSMENT ANSWERS
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