NZQA unitstandard / 23132 version 4
Page 1 of 1
Title / Identify, evaluate, and mitigate risks in a real estate agency
Level / 6 / Credits / 7
Purpose / This unitstandard is for people who intend to operate as agents in the real estate industry.
People credited with this unitstandard are able to:
–demonstrate and apply knowledge of risk assessment for a real estate agency;
–develop policy to target and mitigate risks within a real estate agency; and
–demonstrate knowledge of insurance needs for a real estate agency.
Classification / Real Estate > Real Estate Management
Available grade / Achieved

Guidance information

1Legislation

Consumer Guarantees Act 1993;

Employment Relations Act 2000;

Fair Trading Act 1986;

Goods and Services Tax Act 1985;

Health and Safety at Work Act 2015;

Holidays Act 2003;

Human Rights Act 1993;

Privacy Act 1993;

Real Estate Agents Act 2008;

Residential Tenancies Act 1986;

Resource Management Act 1991;

Unit Titles Act 2010;

and all subsequent amendments and replacements.

2Reference

AS/NZS ISO 31000:2009, Risk management – Principles and guidelines may apply.

3Definitions

Client – the person on whose behalf an agent carries out real estate agency work.

Customer– a person who is a party or potential party to a transaction and excludes a prospective client and client.

Employee – refers to staff who have an employment agreement with an agency.

Independent contractor – a person who has a contract for service with the agency.

4Assessment

Assessment against this unit standard must be based on the following criteria: evidence derived from a real or a simulated workplace situation, provided the simulation reflects industry requirements and requires performance that replicates a real working environment.

Outcomes and performance criteria

Outcome 1

Demonstrate and apply knowledge of risk assessment for a real estate agency.

Performance criteria

1.1Describe twopotential risks, including the possible sources of risk and the areas of impact, within a real estate context.

Rangetypes of risk may include but are not limited to – current and future operations and plans, financial, physical, legal, reputational;

sources of risk may include but are not limited to – commercial and legal, market conditions, political andeconomic factors, human behaviour, technology;

areas of impact may include but are not limited to –financial, employee and independent contractor, client and customer relationships, reputation.

1.2Rank the described risks by their likelihood and potential impact on the real estate agency.

1.3Assess the risks and rewards of a business opportunity or goal for the real estate agency.

Outcome 2

Develop policy to target and mitigate risks within a real estate agency.

Performance criteria

2.1Develop policy that targets and mitigates financial risks,consistent with the real estate agencygoals, objectives, and strategies.

2.2Develop policy that targets and mitigates advertising and marketing risks, consistent with the real estate agency goals, objectives, and strategies.

2.3Develop policy that targets and mitigatestechnology risks,consistent with the real estate agency goals, objectives, and strategies.

2.4Develop policy that targets and mitigates business continuity risks,consistent with the real estate agency goals, objectives, and strategies.

Outcome 3

Demonstrate knowledge of insurance needs for a real estate agency.

Performance criteria

3.1Describe how different types of insurance assist to reduce the financial risks for a real estate agency.

Rangetypes of insurance include but are not limited to – professional indemnity insurance, asset protection, key holder insurance, business continuity insurance.

Replacement information / This unit standard replaced unit standard 4701.
Planned review date / 31 December 2022

Status information and last date for assessment for superseded versions

Process / Version / Date / Last Date for Assessment
Registration / 1 / 18 December 2006 / 31 December 2013
Review / 2 / 12 February 2010 / 31 December 2013
Rollover and Revision / 3 / 16 August 2012 / 31 December 2019
Review / 4 / 26 October 2017 / N/A
Consent and Moderation Requirements (CMR) reference / 0003

This CMR can be accessed at

Comments on this unit standard

Please contact The Skills Organisation you wish to suggest changes to the content of this unit standard.

The Skills Organisation
SSB Code 100401 / New Zealand Qualifications Authority 2018