cppdsm4017a negotiate effectively in property transactions · parties involved can come together....

Property Services Industry

Continuing Professional Development 2015

Edited by

David Jackson

The Australian Salesmasters Training Co Pty Ltd

A Registered Training Organisation #6854

CPPDSM4017ANegotiate Effectively in Property

Transactions

___________________________________________Negotiate effectively in property transactions

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Table of Contents

Unit Description..................................................................................................... 4

Element of Competency ........................................................................................ 4

What is Negotiation?............................................................................................. 6

Listening Skills....................................................................................................... 8

10 Principles of Listening ..................................................................................... 9

Barriers to Effective Communication ............................................................... 11

Clarification ......................................................................................................... 13

The Importance of Negotiating Skills for Real Estate Agents ........................ 15

Consequences of not reaching agreement are identified and otheralternatives are determined................................................................................ 16

Negotiate with parties involved in property transactions to reach a desiredoutcome................................................................................................................. 22

10 Tips for Improving Your Negotiating Skills................................................ 26

How to Improve Your Real Estate Negotiating Skills ..................................... 29

The 8 Stage Negotiation Process ........................................................................ 30

Manage potential and real disputes with parties to property transactions... 43

Further negotiation and clarification of lease or sale is carried out untilagreement is reached to the satisfaction of all parties ..................................... 47

Reading List – Books to Read ............................................................................ 52



CPPDSM4017A Negotiate effectively in property transactions

Unit Description

This unit of competency specifies the outcomes required to manage effective negotiations inrelation to the sale, lease or management of property. It includes establishing the needs andexpectations of relevant parties, negotiating to achieve desired outcomes and managingpotential and real disputes between parties.The unit may form part of the licensing requirements for persons engaged in real estateactivities in those States and Territories where these are regulated activities.

Element of Competency

Element Performance criteria

1. Establish needs andexpectations of relevantparties.

1.1 Clear and open discussions are held with relevantparties to clarify issues and identify desired outcomes in line withagency practice and legislative requirements.

1.2 Consequences of not reaching agreement are identified and otheralternatives are determined.

2. Negotiate with partiesinvolved in propertytransactions to reach adesired outcome.

2.1 Relevant information is collected, analysed andorganised to inform the negotiation.

2.2 Negotiation approach is established in line with agency practiceand legislative requirements.

2.3 Negotiation is conducted in a professional manner, showingrespect for all parties in line with agency practice, ethical standardsand legislative requirements.

2.4 Effective negotiation techniques are used to persuade and reachagreement between parties to the transaction.

2.5 Possible solutions are discussed and their viability assessed.

2.6 Effective techniques are used for dealing with conflict andbreaking deadlocks where required.

2.7 Final position is confirmed, ensuring agreement andunderstanding between all parties.

2.8 As necessary, follow-up communication or reports are provided toall parties to confirm adjustments required to conditions of agreement.

3. Manage potential andreal disputes withparties to propertytransactions.

3.1 Areas of dispute are analysed and evaluated according to agencyprocedures and market expectations to enable resolution of dispute.

3.2 Further negotiation and clarification of lease or sale is carried outuntil agreement is reached to the satisfaction of all parties.




1. Establish needs andexpectations of relevantparties.

1.1 Clear and open discussions are held with relevantparties to clarify issues and identify desired outcomes in line withagency practice and legislative requirements.

1.2 Consequences of not reaching agreement are identified and otheralternatives are determined.

Be ready when opportunity presents itself!

Use it.

No matter how small the opportunity may be.

Use it!

What is Negotiation?



Negotiation is a method by which people settle differences. It is a process by whichcompromise or agreement is reached while avoiding argument. In any disagreement,individuals understandably aim to achieve the best possible outcome for their position (orperhaps an organisation they represent). However, the principles of fairness, seeking mutualbenefit and maintaining a relationship are the keys to a successful outcome.Specific forms of negotiation are used in many situations: international affairs, the legalsystem, government, industrial disputes or domestic relationships as examples. However,general negotiation skills can be learned and applied in a wide range of activities. Negotiationskills can be of great benefit in resolving any differences that arise between you and others.

Negotiation can be a structured process using many different interpersonal skills.

Why Negotiate?

It is inevitable that, from time-to-time, conflict and disagreement will arise as the differingneeds, wants, aims and beliefs of people are brought together. Without negotiation, suchconflicts may lead to argument and resentment resulting in one or all of the parties feelingdissatisfied. The point of negotiation is to try to reach agreements without causing futurebarriers to communications.

Stages of Negotiation

(Note: we will use a couple of examples of this. Later in this text you will see an 8 stageprocess. Good to have a couple of viewpoints.)

In order to achieve a desirable outcome, it may be useful to follow a structured approach tonegotiation. For example, in a work situation a meeting may need to be arranged in which allparties involved can come together. The process of negotiation includes the following stages:1. Preparation2. Discussion3. Clarification of goals4. Negotiation towards a WIN-WIN situation5. Agreement6. Implementation of a course of action

1. PreparationBefore any negotiation takes place, a decision needs to be taken as to when and where ameeting will take place to discuss the problem and who will attend. Setting a limited timescalecan also be helpful to prevent the disagreement continuing.

This stage involves ensuring all the pertinent facts of the situation are known in order to clarifyyour own position. In the work example above, this would include knowing the ‘rules’ of yourorganisation, to whom help is given, when help is not felt appropriate and the grounds for suchrefusals. Your organisation may well have policies to which you can refer in preparation for thenegotiation.

Undertaking preparation before discussing the disagreement will help to avoid further conflictand unnecessary wasting time during the meeting.



2. DiscussionDuring this stage, individuals or members of each side put forward the case as they see it, thatis their understanding of the situation. Key skills during this stage are questioning, listening andclarifying. Sometimes it is helpful to take notes during the discussion stage to record all pointsput forward in case there is need for further clarification. It is extremely important to listen, aswhen disagreement takes place it is easy to make the mistake of saying too much and listeningtoo little. Each side should have an equal opportunity to present their case.

3. Clarifying GoalsFrom the discussion, the goals, interests and viewpoints of both sides of the disagreement needto be clarified. It is helpful to list these in order of priority. Through this clarification it is oftenpossible to identify or establish common ground.

4. Negotiate for a WIN-WIN OutcomeThis stage focuses on what is termed a WIN-WIN outcome where both sides feel they havegained something positive through the process of negotiation and both sides feel their point ofview has been taken into consideration. A WIN-WIN outcome is usually the best outcome,however it may not always be possible but through negotiation it should be the ultimate goal.

Suggestions of alternative strategies and compromises need to be considered at this point.Compromises are often positive alternatives which can often achieve greater benefit for allconcerned rather than holding to the original positions.

5. AgreementAgreement can be achieved once understanding of both sides’ viewpoints and interests havebeen considered. It is essential to keep an open mind in order to achieve a solution. Anyagreement needs to be made perfectly clear so that both sides know what has been decided.

6. Implementing a Course of ActionFrom the agreement, a course of action has to be implemented, to carry through the decision.

Failure to Agree: If the process of negotiation breaks down and agreement cannot be reached,then re-scheduling a further meeting is called for. This avoids all parties becoming embroiled inheated discussion or argument, which not only wastes valuable time but can also damage futureworking relationships.

At the subsequent meeting, the stages of negotiation should be repeated. Any new ideas orinterests should be taken into account and the situation looked at afresh. At this stage it mayalso be helpful to look at other alternative solutions and/or bring in another person to mediate.

Informal Negotiation: Apart from situations when it is appropriate to employ this more formalprocess of negotiation, you will no doubt encounter one-to-one situations where there is a needto negotiate informally. At such a time when a difference of opinion arises, it might not bepossible or appropriate to go through the stages set out above in a formal manner.Nevertheless, remembering the key points in the stages of formal negotiation may be veryhelpful in a variety of informal situations



Listening Skills

Listening is the ability to accurately receive messages in the communication process.Listening is key to all effective communication, without the ability to listen effectivelymessages are easily misunderstood – communication breaks down and the sender of themessage can easily become frustrated or irritated.

Listening is so important that many top employers give regular listening skills training for theiremployees. This is not surprising when you consider that good listening skills can lead to:better customer satisfaction, greater productivity with fewer mistakes, increased sharingof information that in turn can lead to more creative and innovative work.

Good listening skills also have benefits in our personal lives, including: a greater number offriends and social networks, improved self-esteem and confidence, higher grades in academicwork and increased health and wellbeing. Studies have shown that, whereas speaking raisesblood pressure, listening brings it down.

Listening is not the same as hearing. Hearing refers to the sounds that you hear, whereaslistening requires more than that: it requires focus. Listening means paying attention not only tothe story, but how it is told, the use of language and voice, and how the other person uses his orher body. In other words, it means being aware of both verbal and non-verbal messages. Yourability to listen effectively depends on the degree to which you perceive and understand thesemessages.

“The most basic and powerful way to connect to another person is to listen. Just listen. Perhapsthe most important thing we ever give each other is our attention.” Rachel Naomi Remen

We spend a lot of our time listening

Adults spend an average of 70% of their time engaged in some sort of communication, of thisan average of 45% is spent listening compared to 30% speaking, 16% reading and 9% writing.(Adler, R. et al. 2001).

Based on the research of: Adler, R., Rosenfeld, L. and Proctor, R. (2001) Interplay: the process of interpersonalcommunicating (8th edn), Fort Worth, TX: Harcourt.



10 Principles of Listening

A good listener will listen not only to what is being said, but also to what is left unsaid oronly partially said.

Listening involves observing body language and noticing inconsistencies between verbal andnon-verbal messages. For example, if someone tells you that they are happy with their life butthrough gritted teeth or with tears filling their eyes, you should consider that the verbal andnon-verbal messages are in conflict, they maybe don't mean what they say. Listening requiresyou to concentrate and use your other senses in addition to simply hearing the words spoken.

Listening is not the same as hearing and in order to listen effectively you need to use morethan just your ears.

1. Stop Talking“If we were supposed to talk more than we listen, we would have two tongues and one ear.”Mark Twain.

Don't talk, listen. When somebody else is talking listen to what they are saying, do notinterrupt, talk over them or finish their sentences for them. Stop, just listen. When the otherperson has finished talking you may need to clarify to ensure you have received their messageaccurately.

2. Prepare Yourself to ListenRelax. Focus on the speaker. Put other things out of mind. The human mind is easily distractedby other thoughts – what’s for lunch, what time do I need to leave to catch my train, is it goingto rain – try to put other thoughts out of mind and concentrate on the messages that are beingcommunicated.

3. Put the Speaker at EaseHelp the speaker to feel free to speak. Remember their needs and concerns. Nod or use othergestures or words to encourage them to continue. Maintain eye contact but don’t stare – showyou are listening and understanding what is being said.

4. Remove DistractionsFocus on what is being said: don’t doodle, shuffle papers, look out the window, pick yourfingernails or similar. Avoid unnecessary interruptions. These behaviours disrupt the listeningprocess and send messages to the speaker that you are bored or distracted.

5. EmpathiseTry to understand the other person’s point of view. Look at issues from their perspective. Letgo of preconceived ideas. By having an open mind we can more fully empathise with thespeaker. If the speaker says something that you disagree with then wait and construct anargument to counter what is said but keep an open mind to the views and opinions of others.

6. Be PatientA pause, even a long pause, does not necessarily mean that the speaker has finished. Be patientand let the speaker continue in their own time, sometimes it takes time to formulate what to sayand how to say it. Never interrupt or finish a sentence for someone.

7. Avoid Personal PrejudiceTry to be impartial. Don't become irritated and don't let the person’s habits or mannerismsdistract you from what they are really saying. Everybody has a different way of speaking -



some people are for example more nervous or shy than others, some have regional accents ormake excessive arm movements, some people like to pace whilst talking - others like to sit still.Focus on what is being said and try to ignore styles of delivery.

8. Listen to the ToneVolume and tone both add to what someone is saying. A good speaker will use both volumeand tone to their advantage to keep an audience attentive; everybody will use pitch, tone andvolume of voice in certain situations – let these help you to understand the emphasis of what isbeing said.

9. Listen for Ideas – Not Just WordsYou need to get the whole picture, not just isolated bits and pieces. Maybe one of the mostdifficult aspects of listening is the ability to link together pieces of information to reveal theideas of others. With proper concentration, letting go of distractions, and focus this becomeseasier.

10. Wait and Watch for Non-Verbal CommunicationGestures, facial expressions, and eye-movements can all be important. We don’t just listen withour ears but also with our eyes - watch and pick up the additional information being transmittedvia non-verbal communication.

Do not jump to conclusions about what you see and hear. You should always seek clarificationto ensure that your understanding is correct.



Barriers to Effective Communication

There are many reasons why interpersonal communications may fail. In manycommunications, the message may not be received exactly the way the sender intended andhence it is important that the communicator seeks feedback to check that their message isclearly understood.

There exist many barriers to communication and these may occur at any stage in thecommunication process. Barriers may lead to your message becoming distorted and youtherefore risk wasting both time and/or money by causing confusion and misunderstanding.Effective communication involves overcoming these barriers and conveying a clear and concisemessage.

Some common barriers to effective communication include:

The use of jargon, over-complicated or unfamiliar terms. Emotional barriers and taboos. Lack of attention, interest, distractions, or irrelevance to the receiver. Differences in perception and viewpoint. Physical disabilities such as hearing problems or speech difficulties. Physical barriers to non-verbal communication. Language differences and the difficulty in understanding unfamiliar accents. Expectations and prejudices which may lead to false assumptions or stereotyping.

People often hear what they expect to hear rather than what is actually said and jump toincorrect conclusions.

Cultural differences. The norms of social interaction vary greatly in different cultures,as do the way in which emotions are expressed. For example, the concept of personalspace varies between cultures and between different social settings.

A skilled communicator must be aware of these barriers and try to reduce their impact bycontinually checking understanding and by offering appropriate feedback.

A Categorisation of Barriers to Communication

Language BarriersClearly, language and linguistic ability may act as a barrier to communication. However, evenwhen communicating in the same language, the terminology used in a message may act as abarrier if it is not fully understood by the receiver(s). For example, a message that includes a lotof specialist jargon and abbreviations will not be understood by a receiver who is not familiarwith the terminology used. Regional colloquialisms and expressions may be misinterpreted oreven considered offensive.

Psychological BarriersThe psychological state of the receiver will influence how the message is received. Forexample, if someone has personal worries and is stressed, they may be preoccupied by personalconcerns and not as receptive to the message as if they were not stressed. Stress is an importantfactor in Interpersonal relationships. Anger is another example of a psychological barrier tocommunication.



Physiological BarriersPhysiological barriers may result from the receiver’s physical state: for example, a receiverwith reduced hearing may not grasp to entirety of a spoken conversation especially if there issignificant background noise.Physical BarriersAn example of a physical barrier to communication is geographic distance between the senderand receiver(s). Communication is generally easier over shorter distances as morecommunication channels are available and less technology is required. Although moderntechnology often serves to reduce the impact of physical barriers, the advantages anddisadvantages of each communication channel should be understood so that an appropriatechannel can be used to overcome the physical barriers.

Systematic BarriersSystematic barriers to communication may exist in structures and organisations where there areinefficient or inappropriate information systems and communication channels, or where there isa lack of understanding of the roles and responsibilities for communication. In suchorganisations, individuals may be unclear of their role in the communication process andtherefore not know what is expected of them.

Attitudinal BarriersAttitudinal barriers are behaviours or perceptions that prevent people from communicatingeffectively. Attitudinal barriers to communication may result from personality conflicts, poormanagement, resistance to change or a lack of motivation. Effective receivers of messagesshould attempt to overcome their own attitudinal barriers to facilitate effective communication.



Clarification

Clarification involves offering back to a speaker the essential meaning, as understood by thelistener, of what they have just said, checking that the listener's understanding is correct andresolving any areas of confusion.

The purpose of clarification is to:

Ensure that the listener's understanding of what the speaker has said is correct. Reassure the speaker that the listener is genuinely interested in them and is attempting to

understand what they are saying.

As an extension of reflecting, clarifying reassures the speaker that the listener is attempting tounderstand the messages they are expressing. Clarifying can involve asking questions oroccasionally summarising what the speaker has said.

A listener can ask for clarification when they cannot make sense of the speaker's responses.Often, the difficulties a speaker is explaining can be highly complex, involving many differentpeople, issues, places and times. Clarifying helps you to sort these out and also to check thespeaker's priorities. Through clarification it is possible for the speaker and the listener to makesense of these often confused and complex issues. Clarifying involves genuineness on thelistener's part and it shows speakers that the listener is interested in them and in what they haveto say.

Some examples of non-directive clarification-seeking questions are:“I'm not quite sure I understand what you are saying.”“I don't feel clear about the main issue here.”“When you said…what did you mean?”“Could you repeat...?”

Clarifying involves: Non-judgmental questioning. Summarising and seeking feedback as to accuracy.

Questions

When you are the listener in a sensitive environment, the right sort of non-directive questioningcan enable the speaker to describe their viewpoint more fully. Asking the right question at theright time can be crucial and comes with practice. The best questions are open-ended as theygive the speaker choice in how to respond, whereas closed questions allow only very limitedresponses.

Open QuestionsIf your role is to assist a speaker to talk about an issue, often the most effective questioningstarts with 'when', 'where', 'how' or 'why'. These questions encourage speakers to be open andexpand on their thoughts. For example:“When did you first start feeling like this?”“Why do you feel this way?”



Closed QuestionsClosed questions usually elicit a 'yes' or 'no' response and do not encourage speakers to be openand expand on their thoughts. Such questions often begin with 'did you?' or 'were you?' Forexample:“Did you always feel like this?”“Were you aware of feeling this way?”

Questions are generally used for clarifying and should not be asked just for the sake ofquestioning or to fill in pauses or periods of quietness.

Guidelines for Clarifying

Admit if you are unsure about what the speaker means. Ask for repetition. State what the speaker has said as you understand it, and check whether this is what they

really said. Ask for specific examples. Use open, non-directive questions - if appropriate. Ask if you have got it right and be prepared to be corrected.

Summarising

A summary involves reviewing what has taken place in the conversation. It is important to keeponly to the essential components of the conversation, and it must be given from the speaker'sframe of reference, not an interpretation from the listerner's viewpoint. The aim of a summaryis to review understanding, not to give explanation, to judge, to interpret or provide solutions.Summarising should be done at the end of a conversation, although sometimes it may beappropriate midway through as a way of drawing together different threads. At the start of aconversation, it is useful to summarise any previous discussions or meetings as it can help toprovide focus. Whilst the summary is likely to be the longest time a listener will be speakingduring a conversation, it is important to be as concise and straightforward as possible.

Summary of Clarification

In reflecting, clarifying and summarising, speakers must be allowed to disagree with, andcorrect, what the listener says. They should be encouraged to express themselves again, ifnecessary, giving the listener another chance at understanding, and to check understanding untilagreement is reached.

Reflecting, clarifying and summarising are all tools used by active listeners to enable them todemonstrate understanding and encourage a speaker to talk openly. It is essential that thelistener and speaker both have the same understanding of the discussion and the speaker musthave the opportunity to correct the listener's understanding. These are the tools of any goodrelationship and are important interpersonal skills.



The Importance of Negotiating Skills for Real Estate Agents

Negotiating skills for real estate agents are an integral aspect of a successful career. While mostreal estate professionals possess an inherit ability to express themselves during dealnegotiations, educational and training courses are encouraged. Achieving not only closure of areal estate deal, but garnering the best price and commission are the mark of a successful realestate agent.Strong negotiating tactics, along with effective communication techniques are crucial skills forreal estate professionals. Getting a buyer and seller to sign a contract is only part of the battle.No commission is earned until the ink dries on all documents placed upon the closing table.

The negotiating actually begins when the first contact with a potential client occurs. Sellingyourself as an agent, the brokerage, and services provided for listed properties is the first step inearning a commission. Negotiating with a potential seller or buyer can be conducted on thephone, via email, or in person.

Confidence and an outgoing personality bolster the way an agent's knowledge and experiencecome across to clients. Body language and public speaking courses are often a part of an agent'scontinuing education training. Technology courses and special "E-Pro" licensure designationare growing trends in real estate education. Clients should expect their agent to be able tomarket their property to the fullest extent possible, in multiple venues, including virtual toursonline, and with media buys for real estate related television spots.

Competition is the name of the game in real estate. Thousands of agents across the countryvolley for the right to represent clients, and add another notch to their closure belts each day.Buyers and sellers benefit from the competitive environment, and the frenzy to offer the bestarray of services and promotion of the listed properties as possible. Potential clients shouldshop around for the best producing agent, or real estate brokerage, and thoroughly intervieweach agent on their sales records, and level of experience.

Real estate educational centers offer courses in negotiating skills and sales tactics for agents.While such courses are not a required aspect of the required continuing education curriculum,successful agents and brokers strive to hone their skills and earn higher commissions.

The art of the deal does not involve one particular formula, but the ability to read the clientquickly, and choose the right words to comfort them during deal obstacles, and close the deal.Networking with lenders, title agencies, real estate appraisers, and insurance companies is alsoam important aspect of developing a streamlined system of services to offer a potential client,and close deals without a lot of red tape.



Consequences of not reaching agreement are identified and otheralternatives are determined

It is essential to effectively manage negotiations with all parties to property transactions inline with agency practice and legislative requirements that will result in mutually acceptableagreements for the negotiating parties.

You and the negotiating parties must be aware of the consequences of not reachingagreement and other alternatives are determined.

Typical issues and problems in property management that may need to be negotiated withtenants and landlords, including: access to property bonds and security deposits condition reports disclosure statements leases and tenancy agreements property inspections renewal of leases and tenancy agreements rent reviews and increases rent or lease payments repairs and maintenance termination of leases and tenancy agreements

Typical issues or problems in property sales that may need to be negotiated with sellers andbuyers, including: access to property during settlement period offers conditions of sale deposits marketing activities and budget methods of sale property conditions and improvements property inspections reserve price selling price range settlement period.

The alternative outcomes of not reaching agreement may include: property management - new lease or agreement, and voiding lease or agreement property sales - amendment or new condition in contract of sale, and termination of

contract of sale

Alternative ways of resolving dispute may involve application to the following : courts conciliation and mediation tribunals



Courts

Agency agreements to act on behalf of a principal, Agreements for Sale of Land and leases arecontracts. Many states utilize a mix of statutory and common law to provide remedies forbreach of contract. Depending on the contract and circumstances of the breach, the ‘wronged’party may have several basic choices of remedies.

The Courts provide two general categories of relief for breach of contract: damages - monetary compensation for a breach of contract performance - forcing the other side to do what they originally promised in the contract

agreement

Monetary Damages for Breach of Contract

Types of damages for breach of contract include: Compensatory Damages - money to reimburse you for costs to compensate for your loss Consequential and Incidental Damages - money for losses caused by the breach that

were foreseeable (foreseeable damages are when each side reasonably knew that--at thetime of the contract--there would be potential losses if there was a breach

Liquidated Damages - damages specified in the contract that would be payable if thereis a fraud

Punitive Damages - money given to punish a person who acted in an offensive andegregious manner in an effort to deter that person and others from continuing to act inthis way. You generally cannot collect punitive damages in contract cases.

The controlling law, the conduct of the violating party, and the extent of harm suffered caninfluence which of these damages for breach of contract will be awarded. The more egregiousand intentional the behavior, the greater the chance of the Court awarding larger, punitivedamages. If the breach was unintended and arose from negligent behavior, compensatory orconsequential damages will probably be awarded.

Requesting Performance of the Contract

Sometimes money just cannot fix the problem. Instead of asking for damages, the “wronged”party can seek actual performance or modification of performance of the original contract.Performance remedies for breach of contract include:

Specific Performance - a court order requiring performance exactly as specified in thecontract; this remedy is rare, except in real estate transactions and other uniqueproperty, as the courts do not want to get involved with monitoring performance

Rescission - the contract is canceled and both sides are excused from furtherperformance and any money advanced is returned

Reformation - the terms of the contract are changed to reflect what the parties actuallyintended



Conciliation, Mediation & Tribunals

The ACT Civil and Administrative Tribunal (ACAT) is a low-cost and accessible service forthe resolution of disputes between landlords, tenants, consumers and traders in the ACT.

ACAT uses alternative dispute resolution methods such as conciliation to help parties settletheir disputes, by negotiating and reaching an agreement often without the need for a hearing.

ACAT hearings are designed so that parties can generally run their case without legalrepresentation. Orders made are final and binding, and are legally enforceable.

Types of disputes resolved at the ACAT

The ACAT deals with a wide range of everyday disputes between consumers and traders anddisputes about residential property.

Residential tenancies: Disputes between tenants and landlords such as rental bond,repairs, rent arrears and termination of a tenancy.

Social housing: Disputes between tenants and landlords relating to social housingtenancies.

Residential building work: Disputes between home owners, tradespeople and insurersabout residential building work.

Residential parks: Disputes between residential park residents and owners.

Retirement villages: Disputes between retirement village residents and operators.

Strata and community schemes: Disputes about strata scheme and communityscheme living.

Commercial disputes: Disputes about certain agent commissions



Conciliation process

Conciliation is an alternative dispute resolution process used by the ACAT.

Conciliation brings people in dispute together to talk about their issues in an informal, privatemeeting and try to reach an agreement.

The conciliation process is closely linked to the hearing process, rather than as a separate stepof dispute resolution, and is regularly used in conjunction with group listings. Conciliationis also used extensively in matters involving multiple applications about the same dispute, forexample in residential parks and retirement village matters.

What happens during conciliation?

During conciliation you would:

1. Tell the other person what your issues are

2. Show each other your evidence

3. Try to understand and respect each other's different points of view

4. Negotiate your differences, discuss possible solutions and try to reach anagreement.

If you reach agreement during conciliation, the terms of your agreement will be made intoan ACAT order.

If the conciliation is unsuccessful, the hearing will then go ahead either on the same day or at alater date. Any negotiations discussed in conciliation cannot be repeated in the hearing roomunless both parties agree.

Tribunal Conciliators are provided at major hearing venues to assist parties during theirconciliation discussions. In some regional areas the Tribunal Member will act as bothConciliator and Member with the consent of the parties.

Benefits of conciliation

Conciliation is a good way to reach agreement. Conciliation allows you to have control overthe outcome of your dispute and is more likely to result in an agreement you find acceptable.

Conciliation creates an opportunity for you to:

Tell your side of the story in a private environment

Listen and get a better understanding of the other people involved in the dispute

Resolve your dispute mutually, quickly and inexpensively

Find your own solutions without a Tribunal Member imposing a decision on you.

As conciliated agreements are voluntary and represent the self-interests of each party, they arealso more likely to be honoured by both parties.

http://www.cttt.nsw.gov.au/Dispute_resolution/Conciliation_process/Role_of_conciliators.html

http://www.cttt.nsw.gov.au/About_us/Tribunal_members.html



Participating in the conciliation process may also help you deal with any future disputes youmay have.

Preparing for conciliation

Being prepared and clear about the outcome you want is the best way to ready yourself forconciliation.




2. Negotiate with partiesinvolved in propertytransactions to reach adesired outcome.

2.1 Relevant information is collected, analysed andorganised to inform the negotiation.

2.2 Negotiation approach is established in line with agency practiceand legislative requirements.

2.3 Negotiation is conducted in a professional manner, showingrespect for all parties in line with agency practice, ethical standardsand legislative requirements.

2.4 Effective negotiation techniques are used to persuade and reachagreement between parties to the transaction.

2.5 Possible solutions are discussed and their viability assessed.

2.6 Effective techniques are used for dealing with conflict andbreaking deadlocks where required.

2.7 Final position is confirmed, ensuring agreement and understandingbetween all parties.

2.8 As necessary, follow-up communication or reports are provided toall parties to confirm adjustments required to conditions of agreement.

The door to opportunity is always labelled push!- Anon



Negotiate with parties involved in property transactions to reach adesired outcome

How to Negotiate: 7 Real Estate Negotiation TipsBy J Scott

I love to negotiate! Whether it’s buying furniture off of Craigslist or being part of a multi-billion dollar corporate merger team (I’ve done both), I love the challenge of trying to get agreat deal for myself while at the same time making the other person feel like they got a greatdeal too.

And while you may think that the skills required to negotiate small purchases are muchdifferent than the skills required to negotiate the purchase of big-ticket items (like cars, realestate and companies), in reality, the basics are the same.

While you can spend your entire lifetime trying to perfect the art of negotiation, learning a fewkey negotiation strategies can put you far ahead of most of your competition, and can helpnavigate those times when you’re up against an unmotivated seller, a savvy buyer or a head-strong contractor.

This article will offer seven powerful negotiating tips that you will likely find very useful whilepursuing future real estate deals (or any other deals, for that matter). Here are 7 Essential RealEstate Negotiation Tips:

Tip #1: Let the Other Party Speak FirstYou’ll often hear people say, “Never make the first offer…let the other party do it.” This isgreat advice, but do you know why that will help your negotiating position?

There are two reasons:1. First, it allows you to define a mid-point. Many inexperienced negotiators will findthemselves “splitting the difference” in their negotiations; for example, if one inexperiencednegotiator starts by asking $200 in the negotiation and another inexperienced negotiator startsby offering $100 in the negotiation, the negotiation result generally will end up somewherearound $150 (the mid-point). This is human nature not to want to give more or less than you’regetting, so people tend to increase or decrease their offers by the same amount as the otherparty.



But, when the other party states their position first, you have the ability to define the mid-pointof the negotiation!

In the example above, if the seller had stated the $200 ask first, the buyer could easily haveoffered $60, thereby reducing the mid-point of the negotiation (where they expect to end up)down to $130. On the other hand, had the buyer offered $100 to open the negotiation, the sellercould have increased his ask to, say, $260, thereby increasing the midpoint to $180. As you cansee, the person who states the first position is at a disadvantage to the person who waits, as theperson who waits can define the mid-point.

2. Second, it’s quite possible that the other party’s first offer will be better than the first offeryou would make. For example, let’s say you want to hire a plumber, and your budget is $500for a particular project. While you could state upfront that you have $500 to spend on theplumbing work (in the hopes that the plumber doesn’t ask for more than that), what if theplumber was only planning to charge $300? You’ve now told him that you’re willing to pay$500, so he has little reason to quote you anything less than that. By stating your position first,you’ve given away valuable information to the other party (you maximum price), and he willuse that information to extract the most money possible from you.

Tip #2: Stop Talking and Start ListeningOne of the strongest maneuvers when negotiating is to keep your mouth shut. Unfortunately,it’s also one of the most difficult. People are naturally uncomfortable during a negotiatingsilence, but this is exactly why you should work to ensure those silent periods occur. If you’reuncomfortable, you can be sure that the person you’re negotiating with is uncomfortable aswell. And the common result of this uncomfortable situation is that one party will make aconcession to break the awkward silence.

Next time you are negotiating and the person on the other side of the table throws out an offer,make a point to say nothing. Whether it be 10 seconds or 10 minutes, make the other personbreak the silence. You’ll be surprised to find that he or she will often interpret your silence asanger or disappointment, and will break the silence by revising their offer or offering aconcession. Master negotiators will use this tactic to get less experienced negotiators to makesuccessively lower offers without ever having to throw out a counter-offer themselves.

This may be the most basic — but most useful — negotiating tactic you’ll ever employ.

Tip #3: Information is PowerI’d estimate that in 95% of all negotiations between experienced negotiators, the one with themost information (pertaining to the negotiation) will walk away with the better outcome. Whennegotiating, it’s important to know as much as possible, not just about the object of thenegotiation, but also about the party you’re negotiating with and their motives.

Most people tend to assume that negotiation is always about money, but often it is not. Smartnegotiators realize that in many cases, it’s more important to solve a problem than to offer themost money.

For example, let’s say two buyers show up at an open house and both want the house. The firstbuyer assumes that the seller wants the most money possible, and offers full asking price, butneeds two months to close in order to get financing in order, get inspections, etc. The secondbuyer asks the seller why he is selling, and the seller says that he has received a job offer inanother state, and needs to move in the next two weeks; the second buyer makes an offer for$10,000 less than asking, but agrees to close in two weeks, and has no financing or inspection



contingencies. While the first buyer offered more money, the second buyer likely solved aproblem that was more important than the difference in the offers. All because he gatheredsome information from the seller before making an offer.

Tip #4: Always Get the Last ConcessionPart of being a good negotiator is “training” the other party to do what you want, without themeven realizing it. Here is one way to do that with someone you will be negotiating with multipletimes: Always make sure you ask for and get the last concession in the negotiation (aconcession is something the other party gives in a negotiation — a price drop, better terms,etc). By always asking for — and getting — the final concession, the other party will, overtime, learn to stop asking for things once he essentially has what he wants/needs from thenegotiation.

If the other party realizes that every time he asks for something, he will need to give something,he will naturally shy away from asking for more than what he needs in fear that he will beasked to give up something important in return for additional (non-essential) demands on hispart.

For example, when negotiating with a contractor, let’s say that he throws out a final price thatyou both agree on. Instead of saying, “I agree with that price, we have a deal,” instead trysaying, “I agree with that price, if you can start first thing tomorrow morning.”

Maybe he’ll come back with, “I can’t start tomorrow, how about the following day?” Yourresponse could be, “That works, but I’ll need you to finish in three days instead of four.”

As long as he counters your request, continue to ask for additional concessions. Eventually, youwill train the other party that by “resisting,” they are encouraging you to ask for more andmore; they also learn that by just giving in, they end up giving up less in the end. It should beobvious how this will help in future negotiations with this person.

Tip #5: Implement a Penalty for Asking for ConcessionsHave you ever been on the phone with a customer services representative from some companynegotiating some point (for example, your on the phone with your cable company trying to getyour monthly fee reduced by $20), and find that every time you ask for something, the rep putsyou on hold for 10 minutes while they “check to see if they can do that.”

You can bet that it doesn’t really take them 10 minutes to determine whether they can give you$20 off your bill. But, they realize that when you ask for $20 off, then wait for 10 minutes, andthen they come back and counter-offer you $5 off your bill, you’re going to be less likely to goanother negotiating round (“How about $15 off?) if it means you’ll have to wait another 10minutes to get the response. What they’ve done is implemented a “penalty” for each time youask for a concession; while you’re sitting on hold, you’re powerless — you have the option towait for some unknown amount of time, or hang up and get nothing.

If you want to discourage others from asking for concessions in your negotiations, do the samething — implement a penalty each time they ask (though don’t let them know you’re doing iton purpose). And the penalty doesn’t need to be same for each “offense.”

Making them wait (like the example above) is a great example of a penalty. Perhaps you say,“I’ll have to think about that, I’ll give you a call tomorrow and we can discuss further.” Orperhaps the penalty is that they have to fill out a bunch of forms to get their desired concession.Or perhaps they’ll have to drive somewhere to pick up that extra thing that they want.



If you make the penalty for asking more cumbersome than what they asked for, it’s quitepossible they’ll decide it’s not worth the effort — like having to wait 10 minutes to find out ifyou can save $10 extra.

Tip #6: Friction is Your FriendOn the surface, a negotiation that ends quickly and smoothly without too much back-and-forthappears to be a good one. But this isn’t necessarily the case.

Can you remember the last time you went into a negotiation, and the other person quicklyaccepted your offer without too much protest or countering? How did it make you feel? Ifyou’re like most people, you probably felt like you didn’t get as good a deal as you could have.You probably felt that, because the other party didn’t put up too much resistance, they werelikely very happy with the deal, and therefore, you got the worse end.

Oftentimes, though, the other party feels the same way! There wasn’t enough friction in thenegotiation to make both parties feel like they earned a great deal. And because of this, whatyou will often find in negotiations that go quickly and smoothly is that one or both parties willwant to back out of the deal. So, if you really want to ensure that the other side doesn’t back outafter the negotiation is finished, make them work hard to get to a common agreement; this hardwork will often translate into feelings of successful outcome for the other side.

This is especially important in Real Estate Investing, when the other party often has severaldays (if not weeks) to back out of an agreed-upon deal.

Tip #7: Check Your Ego at the DoorOftentimes, we assume that the other side is looking for something tangible in the outcome of anegotiation: more money, better terms, etc. But, a lot of people who pride themselves on theirnegotiating skills are more interested in having their ego stroked than they are in any realtangible outcome. While some people are going to be all about getting every extra penny in thedeal, there are those who will happily give a discounted price (assuming they are still abovetheir minimum threshold) in return for some solid ego stroking.

In Real Estate negotiation, this might mean telling a contractor how highly recommended hecomes; it might mean reminding a potential investor/buyer how good he is at rehabbing on ashoestring budget; or it might mean “confessing” to your wholesaler how much you hatebuying from him because he is such a good negotiator. You’d be very surprised how far somesincere flattery will go in getting you a better negotiating outcome. Not only will it encouragethe other party to put their defenses down, but they will feel an obligation to “return the favor”in some way — make sure you give them a way to return it right then in terms of a lower price(or whatever else you might want).

Remember the last time you negotiated with someone who was really nice? How about the lasttime you negotiated with a complete a**hole? Which one did you feel better about “sticking itto them?” And which one were you happy to give a break to?



10 Tips for Improving Your Negotiating Skills

Negotiation is a discussion between two or more parties, intended to reach an understanding,agreement or to gain an overall advantage in outcome.

Each party will try and gain the advantage for themselves by the end of the negotiating process.

So as a buyer, your primary goal is securing an investment property at the lowest possibleprice. The vendor, conversely, wants to get the best price for the property for sale. Negotiationis largely about choice. What do you choose to offer or concede and what do you choose toaccept or reject?

These ten tips can help you with your next negotiation.

1) Learn to flinchThis is a noticeable visible reaction to a price or counter-offer. The objective of this is to makethe other party feel uncomfortable about the offer they presented.

2) The person with the most information usually does betterThe more information you have about the vendor's position and the property, the better off youwill be. Remember to ask questions and thoroughly research the property and its suburb.

3) Practice makes perfectMany investors will hesitate or be wary of negotiating because of a lack of confidence or due tofears such as:

Drying up – forgetting what to say. Missing out on the deal that you have worked so hard researching. Not capturing the vendor's or agent's interest. Facing difficult questions you cannot answer.

You can also develop your confidence by negotiating frequently on less high value items – e.gask for a discount at your local retail store.

Then when the time comes for probably your most important negotiation on your next propertyinvestment purchase, you will remain calm and confident.

4) Remember, you can always walk awayIt is always better to walk away from a deal rather than make too large a concession andjeopardise your property investment career.

One poorly judged purchase, for example, could seriously affect your cash flow and ability togrow your portfolio over time. There is nothing to be gained by striking a deal at all costs; ithas to be beneficial for you. So if you feel the price is not right, walk away.

There will always be other opportunities and of course the vendor may react to your rebuttal byaccepting a lower offer.

5) Don't be intimidatedRemember, as the vendor you ultimately have the option to walk away and so have the upperhand. So as long as you have completed research that you are confident in, you have nothing to



lose and everything to gain.

So what if the agent laughs at your offer. As long as you have an arsenal of research you cancounter this laugh with a barrage of accurate property and suburb data that can strengthen yourposition.

6) Control your emotionsYour emotions will play a part in the negotiation process one way or another. It is up to you toensure it is a positive role.

Which of us has not acted in a regrettable manner because of negatively heightened emotion?

If you start to feel negative emotions such as frustration or annoyance towards the real estateagent or vendor, it can lead to irrational behaviour or cause the negotiations to break down orworse still, you agree to a deal that you will regret with the benefit of hindsight.

Whereas if you enter the discussions in a positive mood, you will enjoy them more, stay calmand keep your overall objectives at front of mind, rather than having your logic and decisionmaking process clouded by negativity.

Each individual will have his or her own way to enter the negotiations in a positive mood. Onesimple tip is to remember securing the deal at the right price could mean thousands of dollars ininstant equity. Worth remaining upbeat about!

7) The nibbleThis works on the premises that:

You don't have to ask for everything up front. The mind tries to reinforce a decision once it has been made and may be more open to

additional suggestions.

So when you feel the negotiations are reaching their conclusion, you can try asking for furthersmall concessions.

Your major goal will most probably be the best possible price, but there are otherconsiderations, for example a settlement period that best suits your needs, that you can requesttowards the end of the discussion.

If the other party is expecting or wanting to close the negotiations, they may be more likely toaccede.

And of course this can work both ways, so be wary of the other party using this technique onyou.

One way you can counter this is by responding with a smile and stating that the deal is doneand both parties seem happy, so let's not over complicate things unnecessarily and risk it fallingthrough.



8) Body languages – use your body when negotiatingTo reach your goal, you will have to effectively communicate your point of view throughoutthe negotiations.

This applies to verbal communication and body language too. Body language is non-verbalcommunication consisting of posture, gestures, expressions and eye contact. Most of us tend togive and receive this form of communication sub-consciously, but if you take a step back, youcan:

become more aware of it and learn to use it more effectively.

This links back to remaining positive - you want this to come across in your actions as well asyour words. Some things to consider are keeping eye contact, giving a firm handshake andremaining assertive.

The other party will know you are someone to reckon with due to the amount of research andinformation you can produce about the deal.

Back this up by delivering it positively and also showing receptivity to information comingyour way. Appear relaxed and in control, and you probably will be.

9) Don't celebrate until the contracts are signedThe negotiation process can have many twists and turns, particularly when it comes topurchasing an investment property. Don't tempt fate! Keep your feet on the ground and onlycelebrate when the deal is completed.

10) The post mortemAfter every negotiation, you can conduct some analysis on the proceedings while they are freshin your mind. Consider:

What went well? Why? What didn't go well? Why? Were you sufficiently well prepared? Did you question to gain information effectively? Did you use that information to guide your proposal? Were you happy with the outcome? What will you do differently next time?

Having strong negotiating skills can save you thousands of dollars on your next purchase,which will save you money upfront and also on your ongoing loan repayments as well.Remember:

Be clear about your objectives. Prepare thoroughly. Practice your offer making use of all your research. Face your fears. It won't be all that bad! Think creatively. Listen and take in information – you are strengthening your position. Don't be constrained by what you have done before.

So consider these crucial tips before putting in the offer on your next investment property andyou could be thousands of dollars better off.



How to Improve Your Real Estate Negotiating Skills

As a real estate agent, you are constantly negotiating with buyers and sellers, other agents,solicitors, building inspectors, and valuers . Improving your negotiating skills will improveyour success. So how do you go about improving negotiating skills? Here are some general realestate sales tips regarding negotiating that you may want to follow:

1. Learn as much as you can about the other side’s motivations.For instance, if you are attempting to get a real estate listing, find out why the seller wants tosell. Knowing the seller’s motivations will improve your chances of getting the listing.

2. Analyze all the issues. Be knowledgeable. The more knowledgeable party usually excels. Ifyou are in negotiations with someone who is more knowledgeable, don’t show your lack ofknowledge. Ask plenty of open ended questions like, “what will you do if that does/doesn’thappen?”.

3. Show confidence. If the other party believes that you are skilled, experienced andknowledgeable, you will get better results on your listing appointments and also for your clientswhen negotiating on their behalf. Dress the part of success. Look successful, act successful, butdon’t be obnoxious or rude.

4. Establish a rapport with the other party. You need to assess the situation to see if the otherside is going to be cooperative and the only way to successfully do this is to have at least acertain level of trust as soon as you can in your relationship.

5. Have a positive attitude. Be a solution based thinker.

6. Be patient. Being pushy will often lead to the other party withdrawing from the negotiation.

7. Be a good listener. Listening is how you will discover the other persons interests. While youare talking you are not learning anything about the other party and negotiation is all aboutknowing your prospect so you can best help them.

8. Have a reputation for personal integrity. Always keep your word and only tell the truth evenif there is no chance of being found out, because at the end of the day you will always knowthat you are not trustworthy and this can often come across to other people you are looking towork with. We all have a great instinct, especially women and when you live by your word, itcomes across to others and helps you defeat the obstacle of early trust which is and always wilbe the biggest barrier to business.

9. Be able to resolve the conflict with acceptable compromises. Always be looking for win, winoutcomes. The world is a small place and your service area is even smaller, sooner or later mostpeople will either be looking for your services again or know someone who is. Even if youhave to be tough on people as long as they feel at the end of the day that the negotiation is fair,they will respect that and feel comfortable to work with you again.

10. Always be friendly and act in a professional manner. Most people love down to eachstraight shooters. Pretend every prospect is someone you care about and respect and treat themaccordingly.



The 8 Stage Negotiation Process

This is a unique combination framework that puts together the best of many other approachesto negotiation. It is particularly suited to more complex, higher-value and slower negotiations.

1. Prepare: Know what you want. Understand them.2. Open: Put your case. Hear theirs.3. Argue: Support your case. Expose theirs.4. Explore: Seek understanding and possibility.5. Signal: Indicate your readiness to work together.6. Package: Assemble potential trades.7. Close: Reach final agreement.8. Sustain: Make sure what is agreed happens.

DONE!!

8. SUSTAIN:Make sure what isagreed happens.

7. CLOSE:Reach final agreement.

6. PACKAGE:Assemble potential trades.

5. SIGNAL:Indicate your readiness to work together.

4. EXPLORE:Seek understanding and possibility.

3. ARGUE:Support your case. Expose theirs.

2. OPEN:Put your case. Hear theirs.

1: PREPARE:Know what you want. Understand them.

There are deliberately a larger number of stages in this process as it is designed to break downimportant activities during negotiation, particularly towards the end. It is an easy trap to try tojump to the end with a solution that is inadequate and unacceptable.Note also that in practice, you may find variations on this model, for example where theremay be loops back to previous stages, stages overlapping, stages running parallel and even outof order.

The bottom line is to use what works. This process is intended to help you negotiate, but donot use it blindly. It is not magic and is not a substitute for thinking. If something does notseem to be working, try to figure out why and either fix the problem or try something else.Although there are commonalities across negotiations, each one is different and the greatestskill is to be able to read the situation in the moment and adapt as appropriate.

It’s easystep by

step!



The Negotiation Process

1) PREPARE – Relevant information is collected, analysed and organised to inform thenegotiator.

- When negotiating, information is power!

Achieving the power edge in a business negotiation may be as easy as getting moreinformation. The saying “information is power” is especially true in a negotiation. The partythat knows the most can probably get the best deal.

Let’s consider what happens when you don’t have enough information. Say you are traveling ina foreign country, and you don’t know whether taxis have meters. You get into a taxi, and thedriver quotes you a flat fee to get to your destination. You don’t know what the fare would costand you don’t know if you had the option of a meter. Depending on the honesty of your driver,you may or may not be getting a good deal. Clearly, having this information beforehand isgoing to give you the edge over the taxi driver.

To increase your information power, follow these tips:Determine what information you need. Types of information you may want include:

Personality style of other party(s) What are their wants? What will they concede? What will they not concede? Time pressures

Presentation of information

Within the context of negotiation, information power is at the heart of expert power. Even inthe simplest negotiation, the way that information is presented could make a large impact onthe outcome. In the light of this it can be seen that visual aids like charts, graphs and goodstatistics have a substantial impact on a negotiation. Market research on other prices in the area,on consumer's opinions and on financial position and the interest of suppliers is importantinformation to gather when preparing oneself. Care should be taken that this information istrustworthy, since if it is proved to be untrue this could damage the trust built throughnegotiation in a serious way.

Information power is often used in a distributive way so that information is manipulated tocontrol the options open to the other party. For example, the other's choice of behaviour isinfluenced by sending him positive information about the option we want him to choose, or byconcealing information about an option we don't want him to choose.In some cases experts are brought into negotiations since people are less likely to argue with aperceived expert in the area of his expertise. To really take on the challenge, the non-expertwould probably have to consult with another expert, which is costly, time consuming andsomewhat risky. The lack of confidence of the non-expert is often quite visible in his bodylanguage, posture and manner speaking.



Countering good information

Countering information power can be a real problem. When information or an expert is broughtin to counter the other side's information, it can lead to an escalation in conflict with either anegative result of no resolution of the conflict and hence agreement; or a positive result whichleads to a search for other alternatives which could be beneficial to the negotiation process. Sothe best approach would be to:

Explore all the information at hand

See an expert for what he is. All experts have abilities in a certain field, but seldom over thewhole field covered by the negotiation.Either specify or generalize depending on the posturing of the opposition. For example, if theopponent comes with very specific information, an effective counter would be to return withvery general information.

2) OPEN – Negotiation approach is established in line with agency practice andlegislative requirement.

Approaches to negotiation

Styles of negotiating need to vary according to the circumstances and the people involved.Most negotiations will be a mixture of the collaborative and competitive approaches. It isgenerally more productive to steer the proceedings towards collaboration rather thancompetition.

Negotiating roles

Before we look at these approaches in more detail, let’s look at the roles that you might take onin a negotiation. It is possible to identify five, each of which has particular strengths.

The factual negotiator knowing all the facts related to the negotiation; asking factual questions; covering all bases to ensure that no facts are left out; and, providing information.

Factual negotiators tend to leave aside emotional issues such as “face” - a person’s desire for apositive identity. (People like to feel and look good and will react in a hostile manner to attacksthat make them feel or look bad.) They can get most involved in details about the negotiation.

The relational negotiator establishing relationships with the other party; being sensitive to the other party’s emotional issues; building trust; and, perceiving the position of the other party.

Relational negotiation can lose sight of the reasons for negotiation and the objectives in theiranxiety to build relationships. They can also give away information without realising it. Theirsensitivity can make them become emotional and lose perspective.



The intuitive negotiator coming up with unexpected solutions or ways of approach; sorting the wheat from the chaff - the key issues from the irrelevant detail; visualising the implications of a proposal; accurately guessing the progress of negotiation; and, seeing the “big picture”.

Intuitive negotiators can be dangerous because of their wildness and lack of discipline.

The logical negotiator set the rules of the negotiation; develop an agenda; argue a logical rather than emotional way; and, adapt their position to meet changing situations.

The logical negotiator can sometimes see the process of negotiation as being more importantthan the content or outcome.

The lead negotiatorFinally, all these approaches or roles need to be co-ordinated by the lead negotiator, who isresponsible for all of the above roles and who makes the final decision about strategy, etc.It is likely that you will exhibit some or all of these roles in your own negotiations. If yourintuitive negotiator is strongest, you will need to develop discipline. If your logical negotiator ismost prominent, you may need to develop relationship building skills.

Conclusion

Negotiation is a means of arriving at a solution to a problem in a manner which ideally resultsin an outcome which is of benefit to all parties; in other words, a win/win situation. Everybodyis happy, and as a result of your different needs and objectives, it is possible for everyone toleave the table with substantial gains and inconsequential losses. The trick is to trade thingswhich cost you little but which have a high value to the other party.

Negotiation calls for assertive behaviour. You should collaborate to achieve an agreementsatisfactory to all concerned. If you deal with an aggressor, someone who always wants to winat all costs, then the result would be win/lose. The danger of taking this stance is that it maylead to a complete lack of co-operation - the other party dislikes and distrusts the aggressor’sstyle, and so will not bargain - so that the final outcome is lose/lose. Needless to say this mustbe avoided, otherwise the process becomes pointless.

Useful tips

The following pointers will help you when planning your strategy and conducting yournegotiation: Be assertive. Respect the other party - they have objectives, too. Open with a realistic offer, be neither too greedy nor sell yourself too cheaply. Work out your objectives in advance - this makes it easier for you to compromise if that

becomes necessary. Always trade - don’t give anything for nothing. If you need time to think, take it - ask for a short break and recap your notes. Don’t be

pushed into a decision you haven’t thought through.



Make sure that the outcome is mutually beneficial and that all parties leave with a feelingof well-being; that way they’ll be happy to do business with you again.

3) ARGUE – Negotiation is conducted in a professional manner, showing respect for allparties in line with agency practice ethical standards and legislative requirements.

Throughout the following I will discuss a number of tips and techniques, which can be veryhelpful in conducting successful business negotiations.

The golden rule is...In any negotiation, the golden rule spells out as; Be Prepared! The better prepared you are, themore confident you are. The more confident you are in a negotiation, the more authoritativeand persuasive your deliverance will be.

Preparation involves a lot of prior research. You want to allow yourself a good amount of timeto conduct some background research, before taking your argument into the negotiationmeeting.

You need to know: Your “enemy”

The more you know about who your up against, the better. Find out what they are likely torespond to, likely to accept, likely to decline.

Your “battlefield”Gain as much knowledge as possible about the situation being discussed, and about everypossible angle, and relating factor, which may be explored, or used as leverage.

The “Surrender”Explore some possibilities into, not only, what assets and terms you are willing to forgo, andunder what circumstances you will give in to pressure, but what terms the other party is willingto bargain with.

Here are some tools to help you with your business negotiations:

The ‘DCCA’ methodThe DCCA method is a useful tool for negotiation. It can help you, not only diagnose eachparty’s concerns, but provide a logical path to issue resolution. The DCCA stands for: Diverge Converge Consensus Action

DIVERGE:Is concerned with the spilling of ideas and concerns, of any kind, which each party may have inrelation to the negotiation topic.

CONVERGE:Is the next stage in the process, in which you attempt to group the ideas and concerns intoorders of importance and relativity.

CONSENSUS:Is the all-important stage of judgement, whereby judgement criteria are first determined by theparties. These can include relevance, importance, financial impact on each party, you name it.

http://livewithrichard.hubpages.com/hub/Persuasive-Writing



Parties, ideally, work together to assess each concern on the predefined criteria. The objective,of course, is reaching a consensus on the hierarchy of terms which will be fulfilled by eachparty, and a contract may be drawn, depending on the requirements defined by the participants.

ACTION:The final stage is, therefore, action. Each party then needs put their agreement into action, ordetermine dates on which they will do so.

Turn knowledge into power

We have discussed the importance of obtaining as much relevant knowledge as you can, beforestepping into a negotiation meeting. The following outlines the steps you go through, inconverting any knowledge into power.

DATA:Data is raw facts and figures, not yet having been organized, or belonging to a particularcontext.

INFORMATION:You acquire information when you sort through your data, and keep only what’s relevant toyour negotiation, or argument specifically.

KNOWLEDGE:When you read through your information, and categorize and sort it cognitively, you turninformation into knowledge.

INTELLIGENCE:Stockpiling your knowledge, and revisiting it constantly, can create memory and understandingof you’re knowledge, and thus, an intelligence. Intelligence is also defined by being able toadapt the knowledge you have, and use it to your advantage, within certain contexts.

WISDOM:Wisdom is a level of intelligence, whereby you’ve known and explored the angles of theinformation for a period of time, which makes you an expert, and understood authority of theintelligence. You know how to find the right information, and you know how to use it, andcontract it out.

POWER:Power, in this situation, is both; a confidence in ability, and a desired state of being. Power isachieved by applying your wisdom to a negotiation. So, the idea is, if you gather enough data,and go through the necessary steps to become an expert of applying this data, you will hold thepower in a negotiation. The broader your wisdom and power, the better chance you’ll have ofsuccess in a negotiation.

Important Tips

Here are some tips and techniques to keep in mind, in any negotiation: No matter how knowledgeable, fearsome, or pushy someone seems, everyone has weak-

points, and everyone has things they are willing to give up. Gain knowledge from research, and gain power and confidence. Confident impressions can, sometimes, say as much as factual arguments.



Try not to get emotionally invested in the negotiation, despite other investments.Remaining rational promotes good calculation and decisiveness, gives you a persuasiveedge.

Create an empathetic, understanding, environment with the other party. If one party becomes emotionally involved in a discussion, then logic can sometimes go

unheard. In these cases, it can be better to seek resolution at a later date If a conclusion is not reached on the day of negotiation, always make a commitment to a

time to continue the negotiations. Never leave open ended. Sometimes a negotiation can be seen as a battle (topic of negotiation), pertaining to a war

(full negotiation/scope of relationship). Define the battles and the war, and learn whichbattles to win/lose, in order to win the war.

Know who your up against. Know your arguments, strengths and weaknesses. Know your adversary’s potential arguments, strengths and weaknesses. Compare your opponents best and worst potential settlements with your own. The middle

ground will be where you need to do the dealing. Look at the pros and cons of each settlement, and aim for the ideal!

4) EXPLORE – Effective negotiation techniques are used to persuade and reachagreement between parties to the transactions.

An individual needs to adopt certain skills for a successful negotiation. Let us understandthem in detail:

An individual before starting with the negotiation must be very clear with the agenda (topic) ofthe negotiation. Ask yourself - why this negotiation? What is the objective of the negotiation?One must be well informed. Try to find out more about the competitor’s products or services.

Before any important deal, do make it a habit to go through as many details as you can. Thesecond party might ask you anything, you must be well prepared to clear all their doubts andconvince them. If you yourself are confused, he would never bother to listen to you.

React sensibly - A good negotiator must react sensibly. He should never lose histemper or over react. If you are unhappy with the deal, show your displeasure. Don’tkeep things to yourself or assume that the others will understand it on their own. Onehas to voice his opinions. Make the other person realize that you are not satisfied withthe deal and it must be revised. Show your unhappiness to others.If your boss assigns you a project you are not very comfortable with, show yourdispleasure to your boss in a polite way and ask for something else. But make sure youare not rude; otherwise your job might be at risk.

Patience - One needs to be patient enough for a good negotiation. It is not always thatthe other person will accept your suggestions in the first attempt itself. You need toconvince him and it needs patience. Never be in a hurry to close the deal.

Confident - One needs to be confident enough for an effective negotiation. You mightneed something but never show your desperation to anyone. They will take undueadvantage of your helplessness. Take care of your facial expressions. Never be nervousin front of the second party. Don’t start sweating.

Be dignified - One should maintain the decorum of the place and should not stoop toany level for getting the best deal. Present your ideas in a dignified way. Remember it isjust a discussion, not a battle field. Avoid shouting or using derogatory statementsagainst anyone. If you are not satisfied with the deal, its better to quit rather thanfighting and using abusive languages.



Be very clear in your communication - Stay firm on your quotes and do not changestatements quite often. Don’t play with words or try to confuse others. One needs to bestraightforward from the very beginning.

Be a good listener - Don’t jump to conclusions; instead listen to what the other partyoffers. Understand his situation well. It’s okay to think about your personal interests butdon’t be mad for it. If the deal is not benefiting the other party, he will obviously notaccept it, don’t be after his life. If you don’t listen to others, they would obviously notrespond to you.When a customer goes to purchase something, he must not forget that the store owneralso has to earn his profits. The store owner should also understand the customer’sneeds and pocket. Negotiation depends on mutual understanding.

Be reasonable - Don’t quote anything just for the sake of it. Be reasonable. Don’t quoteimaginary or unusually high figures. Don’t ask for anything you yourself know is notpossible. It will just be wastage of time and no one would benefit out of it.

5) SIGNAL – Indicate your readiness to work together.- Possible solutions discussed

Always try to offer more than one solution to any negotiation. These 12 points will assist youin indicating your readiness to negotiate and seek solutions.

1. Listen carefully to the other party. Don't interrupt the other party, don't spend yourlistening time figuring out how you're going to shock the other party when he or shefinally stops talking. Most people carry on an inner dialogue with themselves whilelistening to others. When you negotiate, turn off your inner voice. Then you won’t missimportant nonverbal messages, and crucial facial expressions that tell you more than theactual words being used. The better you listen, the better you can learn, and the morelikely you will be able to respond in a way that improves the negotiation's result. If youlisten carefully, you will be able to understand the other party’s interests and weighthem against your own interests.

2. Be open and flexible. This will also allow the person you are negotiating with to beopen and flexible. Negotiation is a form of communication. Without trust,communication is not successful.

3. Ask questions that will uncover the needs or interests of the other party.4. Try to offer more than one solution to the problem. There could be more than one

solution to the problem at hand. Moreover, if the person you are negotiating with knowsthat she has more than one option, she will not feel as if she is being forced into anagreement. Then she will be willing to listen to you and compromise.

5. Separate people from the problem. You may not like the person you are negotiatingwith. But that person is not the reason you are negotiating. You are negotiating in orderto solve a problem (which is usually of great importance to you). So concentrate on theproblem.

6. It’s not enough to know what you want out of negotiation. You also need to anticipatewhat the other party wants. The smart negotiator also tries to anticipate what the otherparty thinks he or she wants.

7. If you have created the grounds well, be willing to say "no" to the person you arenegotiating with if his demands are unacceptable. A bad agreement is much worse thanno agreement.

8. See to it that the other party wins, especially if it does not compromise your position. Ahappy opponent will not mind making you happy in return! Instead of "If you will dothis, then I will do that" we should ensure that what each party has to bring to the



negotiated deal creates more value than the sum of the parts that each contributes.Negotiation should bring about added value.

9. Be patient. Negotiating what you want may take more time than you think.10. Know what a win is. What is your best-case scenario? What is your worst-case

scenario? The area in between is called settlement range. If you can reach an agreementwithin your settlement range, that’s a win! Stop when you win, not when you ‘defeat’the other party.

11. Know your best alternative to a negotiated alternative (BATNA).12. Know the other party’s BATNA.

BATNA stands for Best Alternative to a Negotiated Agreement. The acronym was derived afterresearch on negotiation conducted by the Harvard Negotiation Project.

Before you begin a negotiation, know what your options are. Can you walk away from thedeal? What other choices do you have? What are the pros and cons of each choice? However,you should consider the other party’s interests too. Consider the BATNA of the other party.That may allow you — and the other party — to climb down from a rigid position.

Work at your negotiation skills

You may not be aware of it, but you probably negotiate daily. Yet you may not think ofyourself as a negotiator. That is because you may not be aware that, like everything else, a lotof work goes into negotiating and that you have been working.

It is time, however, that you made this work methodical. Successful negotiators do theirhomework — even for ‘short negotiations’. They always have clearly defined goals.

Know whom you are going to negotiate with before you begin. Does that person want a Win-Win solution or is he heading for a Win-Lose scenario? Does the person want to negotiate withyou, does he dread the negotiation, or is this a neutral situation?

6) PACKAGE – Assemble options- Get the best alternative

Assembling Options in Negotiation

What happens in the average negotiation? A few greetings, a little sharing of information, followedby some hard bargaining or, worse still, hard haggling?

The risk is that the negotiators rush into a solution that is less than optimal or worse still, a solutionthat cannot be implemented.

So what happens when skilled negotiators are involved?

Firstly, skilled negotiators appreciate the importance of having several issues on the table. This waythey can bargain or trade one issue against another. Say, payment terms against deliveryrequirements or price against time schedule. When there is only one issue on the table, usuallyprice, there is nothing to bargain with and the process degenerates into a haggle. This is alsocovered in an earlier article about the importance of selling first and negotiating later — you canonly trade something if the other side ascribes some value to it and that will only happen if youhave sold them the value of it.

Secondly, skilled negotiators recognise the value of looking for a creative solution. In many cases,



the parties to a negotiation become so involved in trying to concede as little as possible to the otherside that they miss the opportunity to develop a solution that will give them, and often the other sideas well, a better outcome.

Fisher and Ury use the example of two sisters arguing about an orange. Both want the orange sotheir mother cuts the orange into two and each sister gets half the orange. But what if one sisterwants the orange rind for cake that she is baking and the other wants the juice? The solution ofcutting the orange in two only partly meets the needs of the each sister.

Although the example of the orange may be far removed from the day-to-day realities of modernbusiness, opportunities do exist. The buyer thumping the table, demanding 24-hour delivery, facedby a seller arguing to justify the cost of 24-hour supply, may be missing the obvious: on-site storageat the buyer's premises.

So how should we ensure that we don't miss opportunities to develop options in a negotiation? Inthe average negotiation described at the start of this article both sides have leapt into bargainingwithout considering the information that they have gleaned from the other side up to that point.

Once we are sure that we fully understand what the other side is looking for, what the difficultiesare that they are facing, their fears and their aspirations we may be in a better position to developoptions that we hadn't thought of before we came into the negotiation.

We may try to develop options right there with the other side. However, this seldom occurs innegotiations unless there is a high degree of trust between the parties. At the least it is advisable totake a time-out from the negotiation and consider the options that are available. If we arenegotiating in a team it is an opportunity to brainstorm options away from the pressures of thenegotiation or to suspend the negotiation at this stage so that we can consult with our stakeholdersthen come back at a later date.

Taking a breather before starting to bargain allows us to 'look before we leap', to make surethat we are not missing any vital information that should be taken into account in ourproposals.

7) CLOSE – Final position is confirmed, ensuring agreement and understandingbetween all parties.

Coming to an Agreement

Once you have come to a final agreement, it is important that you have it down in writing alongwith both parties’ signature: this is not always possible or practical. Before it is signed, orformally ordered, it is wise not to say anything about the terms agreed because your nextsentence could break the agreement: the best sales-people never over sell – well, not until theyhave to!

If it is a sale/purchase that you are making, then officially, it isn’t a sale until you/they haveactually approved your agreement. Usually, this will be a contract. In most other negotiations,one party sending a letter and fax to the other in which the agreement is outlined (to a sufficientdegree) will form a legal basis.

If the other party then amends the conditions in the agreement in writing to you, those amendedterms then become part of the agreement, UNLESS you disagree in writing, and so on…



Summary

We use negotiation in everything we do but you have to be sure that it is done in the best waypossible to achieve maximum benefit. The most important part is planning: preparing well willgive you an advantage when negotiating. Only use the knowledge and experience you need toachieve your objective: having the business owner negotiating the supply of pencils is over-kill,and leaves you little room to power-bargain with the same supply company when you wantthem to supply you with, say, colour photo-copiers. Have confidence and be sure that you cankeep control at all times. Aim highly, but don’ t under-estimate the opposition. They too mayhave just read the same advice. If you’re selling something, be persuasive and offer someincentive to keep the customer interested. Don’t close an agreement until you are happy.Remember, the preferred result is a win/win result for both parties resulting in a long termrelationship.

8) SUSTAIN – Make sure what was agreed happens- Implementation is the realisation or execution of a plan, idea or policy.

Implementation is the carrying out, execution, or practice of a plan, a method, or any designfor doing something. As such, implementation is the action that must follow any preliminarythinking in order for something to actually happen. In an information technology context,implementation encompasses all the processes involved in getting new software or hardwareoperating properly in its environment, including installation, configuration, running, testing,and making necessary changes. The word deployment is sometimes used to mean the samething.

Even the most well-thought-out negotiations, the resolutions are just a stack of paper if notcoupled with a plan for implementation. This is the part of the negotiation where you’ll clarifyobjectives, assign tasks with deadlines, and chart your progress in reaching goals andmilestones. Here are some guidelines for successful outcomes implementation:

Objectives: Your objectives should be crystal clear and specifically spelled out, since you’lluse them as a building block for the rest of the implementation plan.

Tasks: This part details what must be accomplished to achieve your objectives. Include a taskmanager for each step, so that roles are clearly defined and there is accountability. As youenumerate tasks and assignments, these descriptions should be plainly and generally stated;don’t get into a step-by-step, micromanaged explanation of how the tasks will be carried out.Emphasize the expected results associated with these tasks. Continuing with the aboveexample, the tasks section might read like this: Secure office space – real estate agent Obtain licenses and permits – you Set up office phones and computers – office manager Begin recruiting clients – sales manager Create marketing collateral – marketing manager Solicit referrals from clients – relationship manager

This list is obviously very specific to this particular firm and is a brief illustration. You maywish to go into more details, assigning tasks to yourself such as obtaining financing,networking with prospective clients, etc.

http://searchexchange.techtarget.com/definition/configuration



Time allocation: Each task should be paired with an appropriate time frame for completion.You should be aggressive but reasonable with your time allocation in order to ensure not justcompletion but competent work. For assistance in framing this timescale, use a program such asMicrosoft Project, or just create your own Gantt chart – a helpful tool that shows how long itwill take to complete different tasks and in what order the tasks should be finished.

Progress: You or a member of your management team needs to be in charge of monitoringeach task’s progress and the completion percentage of each objective. When delays occur, tryto get to the root of the problem. Did the person responsible drop the ball? Did he or she havetoo many responsibilities to handle? Did a third party, such as a supplier or the bank, fail tohold up its end of a deal? Adjust your Gantt chart appropriately to account for the delay, andmake a note of the previous deadline and the reason it was missed.

While the above steps may seem like overkill, the early days of a startup are criticallyimportant; it’s a time when good management patterns are set and also probably a lean erawhen revenue has yet to start rolling in. The more efficiently you start implementing yourbusiness plan, the more likely it is that you will survive this early period.




3. Manage potential andreal disputes withparties to propertytransactions.

3.1 Areas of dispute are analysed and evaluated according to agencyprocedures and market expectations to enable resolution of dispute.

3.2 Further negotiation and clarification of lease or sale is carried outuntil agreement is reached to the satisfaction of all parties.

“If the window of opportunity appears, don’t pull down the shade.”-- Tom Peters

“A pessimist sees the difficulty in every opportunity and the optimist seesthe opportunity in every difficulty.”

-- Sir Winston Churchill



Manage potential and real disputes with parties to propertytransactions

Areas of dispute are analysed and evaluated according to agency proceduresand market expectations to enable resolution of dispute.

Conflict Management

Conflict management involves doing things to limit the negative aspects of conflict and toincrease the positive aspects of conflict. The aim of conflict management is to enhance learningand group outcomes, including effectiveness or performance in organizational setting (Ra him,2002, p. 208). Properly managed conflict can improve group outcomes (Alpert, Osvaldo, &Law, 2000; Booker & Jame son, 2001; Ra-him & Bono ma, 1979; Kuhn & Poole, 2000;Church & Marks, 2001).

Conflict management is something that companies and managers need to deal with. Conflictsignificantly[not specific enough to verify] affects employee morale, turnover, and litigation, whichaffects the prosperity of a company, either constructively or destructively. (Lang, 2009, p. 240)Turnover can cost a company 200% of the employee's annual salary. (Maccabeus & Shudder,p.48)

Conflict

While no single definition of conflict exists, most definitions involve the following factors:there are at least two independent groups, the groups perceive some incompatibility betweenthemselves, and the groups interact with each other in some way (Putnam and Poole, 1987).Two example definitions are, "process in which one party perceives that its interests are beingopposed or negatively affected by another party" (Wall & Callister, 1995, p. 517), and "theinteractive process manifested in incompatibility, disagreement, or dissonance within orbetween social entities" (Rahim, 1992, p. 16).There are several causes of conflict. Conflict may occur when:

A party is required to engage in an activity that is incongruent with his or her needs orinterests.

A party holds behavioral preferences, the satisfaction of which is incompatible withanother person's implementation of his or her preferences.

A party wants some mutually desirable resource that is in short supply, such that thewants of all parties involved may not be satisfied fully.

A party possesses attitudes, values, skills, and goals that are salient in directing his orher behavior but are perceived to be exclusive of the attitudes, values, skills, and goalsheld by the other(s).

Two parties have partially exclusive behavioral preferences regarding their jointactions.

Two parties are interdependent in the performance of functions or activities.(Rahim, 2002, p. 207)

http://en.wikipedia.org/wiki/Learning

http://en.wikipedia.org/wiki/Wikipedia:Verifiability

http://en.wikipedia.org/wiki/Conflict_(process)



Conflict resolution and conflict management

Conflict resolution involves the reduction, elimination, or termination of all forms and types ofconflict. When people talk about conflict resolution they tend to use terms like negotiation,bargaining, mediation, or arbitration.[citation needed]

Businesses can benefit from appropriate types and levels of conflict. That is the aim of conflictmanagement, and not the aim of conflict resolution.[citation needed] Conflict management does notimply conflict resolution.

Conflict management minimizes the negative outcomes of conflict and promotes the positiveoutcomes of conflict with the goal of improving learning in an organization. (Rahim, 2002, p.208)

Organizational learning is important.[citation needed] Properly managed conflict increases learningby increasing the amount of questions asked and encourages people to challenge the status quo(Luthans, Rubach, & Marsnik, 1995).

Steps to Manage

The first step is reactionary by assessing and reacting to the conflict. The second step isproactive by determining how the employee reacted to the decision. The manager tries to take(create) a new approach, and once again tries to discern how the employee reacts.

Once the manager feels that the best decision for the organization has been chosen, and theemployee feels justified, then the manager decides if this is a single case conflict, or one thatshould be written as policy. The entire process starts as a reactive situation but then movestowards a proactive decision. It is based on obtaining an outcome that best fits the organization,but emphasizes the perception of justice for the employee. The chart below shows theinteraction of the procedures.

Maccoby and Studder identify five steps to managing conflict.1. Anticipate – Take time to obtain information that can lead to conflict.2. Prevent – Develop strategies before the conflict occurs.3. Identify – If it is interpersonal or procedural, move to quickly manage it.4. Manage – Remember that conflict is emotional5. Resolve – React, without blame, and you will learn through dialogue.

(Maccoby & Studder, p. 50)

Melissa Taylor's research on Locus of Control is directly related to individual abilities ofcommunication, especially as it pertains to interpersonal conflict. She also states that conflictsshould be solution driven which are creative and integrative. They should be non-confrontational, and they should still maintain control, utilizing non-verbal messages to achievethe outcome.(Taylor, p. 449)

Rahim, Antonioni, and Psenicka's 2001 article deals with two types of leaders. Those that haveconcern for themselves, and those that have concern for others. (Rahim, Antonioni & Psenicka,2001, p. 195)

They also have degrees of conflict management style.

http://en.wikipedia.org/wiki/Conflict_resolution


http://en.wikipedia.org/wiki/Negotiation

http://en.wikipedia.org/wiki/Bargaining

http://en.wikipedia.org/wiki/Mediation

http://en.wikipedia.org/wiki/Arbitration

http://en.wikipedia.org/wiki/Wikipedia:Citation_needed




http://en.wikipedia.org/wiki/Organizational_learning




1. Integrating involves opening up, creating dialogue, and exploring differences to choosean effective solution for both groups. "This style is positively associated with individualand organizational outcomes." (Rahim et al., p. 197)

2. Obliging tries to find the same interests of the parties, while trying to minimize the truefeeling of the conflict, to satisfy the other party.

3. Dominating is a coercive manager who forces their own way.4. Avoiding is ignoring the problem in hopes that it will go away.5. Compromising is a manger that is willing to make concessions and the employee makes

concessions for a mutual agreement. (Rahim et al., p. 196)

The avoiding and dominating styles are considered ineffective in management. The followingchart shows the interaction between the styles. (Rahim et al., p.196)



Ten commandments for managing disputes

These simple yet often ignored steps can help you better manage and minimise disputes in yourbusiness.

1. Maintain a good working relationship.

2. Do not allow complaints to escalate to a dispute by avoiding or ignoring your client.

3. Make time to communicate with your client face-to-face and give your client the

opportunity to explain the nature of their complaint.

4. Do not interrupt while your client is speaking – no matter how ‘far-fetched’ you think

their side of the events is.

5. Listen, listen and listen.

6. As your client talks, listen and take notes.

7. After your client has finished speaking respond in a calm, clear and non-threatening

manner.

8. Once you have both agreed on an appropriate course of action, act quickly to implement

the resolution.

9. If you cannot resolve the complaint, seek help sooner rather than later.

10. In any building related dispute you should apply sound commercial judgment by

pursuing a course of action that minimises your loss (monetary/relationships).

Strategies for dispute management will differ depending on the individual circumstances, somake sure you consider all the aspects before proceeding with a course of action.

http://www.masterbuilders.asn.au/contracts-and-disputes/avoiding-and-managing-disputes/communication



Further negotiation and clarification of lease or sale is carried outuntil agreement is reached to the satisfaction of all parties

“Let us never negotiate out of fear. But let us never fear to negotiate.”- President John Kennedy

The below 10 top tips can help you prepare for and get the most out of the negotiation process.

Negotiation 10 Top Tips for Clarification and Satisfaction of Both Parties

1. Think about what you wantThink carefully about your issues and the outcome you want to achieve. Write a summary ofthese issues. It keeps you focussed.

2. Work out how you will negotiateBe open-minded and flexible. Think about the other person's issues and how they will respondto your views. Negotiation may involve some compromise to reach a solution you both findacceptable.

3. Tell your side of the storyBriefly explain your side of the story and show your evidence to the other person. Explain howyou would like to resolve the dispute. Focus on solutions. Try not to argue about who's rightor wrong, or why. Focus on the concern, not the person.

4. Listen to the other personListen carefully to the other person and look at their evidence. You might want to take notes.Allow them to talk and don't interrupt. Try to consider their point of view, even if you don'tagree. Their view is important to them.

5. Focus on the issues, not the emotionsStay focused on the issues, not on your emotions or the behaviour of the other person.

6. Start negotiatingStart coming up with possible solutions. Make offers and counter-offers. A successfulconciliation happens when both parties agree on a solution.

7. Only agree to what you think is acceptableBe sure you only agree to an outcome you find acceptable. Keep in mind there has to be somegive and take by both parties when coming to an agreement.

8. Ask for help if you're having problems from a third partyIf you're having problems, ask the Conciliator, Tribunal Member or a Registry officer for help.If you feel threatened by the other person, let the Conciliator or security officer knowimmediately.

9. If you reach an agreementWrite down your agreement on the form provided. If a Conciliator is available they can helpyou write it down. Before your agreement is made into a legally binding order, you will beasked if you understand the agreement, and confirm you made it voluntarily.



10. If you don't reach an agreementIf you can't reach agreement, the hearing will go ahead on the same day or at a later date.Think about whether your issues are important enough to come back on another day which mayincrease the time, cost and inconvenience to you.

Role of conciliators

The CTTT provides conciliators at major hearing venues to assist parties during theirconciliation discussions. In some regional areas the Tribunal Member will act as bothconciliator and hearing member with the consent of the parties.

The conciliator's role in assisting parties come to an agreement is to: Facilitate open and honest discussions between the people in dispute. Help to identify the issues in dispute. Assist both people to come up with options and possible solutions. Help write down any agreement you reach together.

Conciliators attend to a number of parties at the same time and therefore may not be able tostay in the room during the entire conciliation process.Please note: Conciliators do not provide legal advice or make decisions. They will howevercheck that the parties understand the agreement and it is made with their consent

Representation

The CTTT is designed for people to represent themselves at hearing. Thisprovides an affordable, accessible and efficient means of resolving yourdispute.

Generally, parties can only be legally represented where the amountclaimed is more than $30,000 or if the matter is a strata or communityschemes dispute.

Requests for representation

A request to be represented must be in writing and contain the following information: The file number and parties' names The reason why a party seeking to be represented The name and occupation of the proposed representative and whether or not that

person is a lawyer/solicitor A statement that the proposed representative has a party’s permission to make

decisions in their absence that are binding on them.

A party can apply to be represented in writing before the matter is heard or application can bemade at a hearing. The Tribunal Member will decide on the day if a party can be represented.Representative may be a lawyer, a real estate agent on behalf of a landlord, an advocate, friendor relative provided that person is authorised to act and allowed to make a decision at thehearing on the respective party’s behalf.



Grounds for representation

Representation may be allowed in the following circumstances: In Home Building Division matters involving a claim or dispute for an amount over

$30,000 Where the party to proceedings is:

o A landlord to be represented by the property managing agento A residential park owner to be represented by the park managero A retirement village operator to be represented by an employee or agento A retirement village resident to be represented by a nominated resident of the

village or residents committeeo A corporation to be represented by one of its officerso An owners corporation (strata) to be represented by the strata managing agento A community association to be represented by one of its members or the

managing agento A registered co-operative to be represented by one of its officerso A firm to be represented by one of its partnerso An incorporated association to be represented by one of its officerso An unincorporated body to be represented by an elected member of the

executive or management committeeo An estate which is being managed by a trusteeo A government agency to be represented by an officer

If the other party is to be represented by a legal practitioner If the other party is a government agency If the CTTT is of the opinion that complex issues of law or fact will arise in the

proceedings.

See clause 14 Consumer, Trader and Tenancy Tribunal Regulation 2009 for the full list of circumstances inwhich an application for representation can be made.

Legal representation

A party can apply to be represented in writing before the matter is heard or can apply at firsthearing. If an application is made for representation in writing the CTTT will seek commentsfrom the other party prior to making a decision.

If the Tribunal Member decides a party can be represented can be represented, the other partywill also be able to be legally represented.

Strata and community schemes matters

A party to a strata scheme or community scheme dispute is automatically grantedrepresentation, and the CTTT’s approval does not need to be sought.Section 193 of the Strata Schemes Management Act 1996 states that a party in a strata schemematter may be represented before the CTTT. Section 93 of the Community Lands Management Act

1989 allows the same for community schemes matters.

http://www.legislation.nsw.gov.au/viewtop/inforce/subordleg+437+2009+pt.4+0+N/

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Disadvantaged persons

If a Tribunal Member finds that a party is disadvantaged or not sufficiently competent toconduct his or her case, they may make orders directing that they be represented – section36(6) Consumer, Trader and Tenancy Tribunal Act 2001.

Under the Act, persons are at a disadvantage if they are minors or people who are incapable ofrepresenting themselves because of intellectual, physical, psychological or sensory disability,advanced age, mental incapacity or other disability.

Mediation

Mediation is compulsory for most strata and community schemes disputes before an applicationcan be made to the CTTT.

What is mediation?

Mediation is a structured negotiation process. A neutral and independent mediator assiststhe parties to identify the issues in dipute and to consider and discuss options with a view tonegotiating a settlement. Any settlement reached is binding for those involved. The settlementagreement may be made into an enforceable order by an Adjudicator.If settlement is not reached or the agreement breaks down, an application may be made to theCTTT for Adjudicator orders or Tribunal orders.

Why is mediation compulsory?

The Strata Schemes Management Act 1996 and Community Land Management Act 1989 statethat mediation must be attempted before an application can be lodged at the CTTT.The following disputes types do not require mediation:

Appointment of a compulsory strata managing agent Allocation of unit entitlements Penalty disputes.

Tenancy Disputes

Living in a rental property means that a tenant has entered into a ‘residential tenancyagreement’ with a landlord. The CTTT's Tenancy Division deals with disputes between privatelandlords and tenants who have entered into such an agreement.

The Residential Tenancies Act 2010 does not apply to hotels and motels, boarders and lodgers,protected tenancies, and commercial or retail tenancies.

Disputes between social housing providers and tenants are dealt with in the Social HousingDivision.

Disputes

http://www.legislation.nsw.gov.au/viewtop/inforce/act+82+2001+pt.4-sec.36+0+N/

http://www.legislation.nsw.gov.au/viewtop/inforce/act+82+2001+pt.4-sec.36+0+N/

http://www.cttt.nsw.gov.au/Divisions/Social_housing.html

http://www.cttt.nsw.gov.au/Divisions/Social_housing.html



Common disputes determined in this Division include: Termination of the residential tenancy agreement Rental bond Breaches of the agreement, for example rent arrears Rent increases Uncollected goods Recognising occupants as tenants.

Mortgagee repossessions

When a tenant is given notice to vacate by a mortgagee, they may apply to the CTTT to recoverany rent paid in advance, or other fees and charges to occupy the premises paid during thenotice period.

Jurisdictional limits

The CTTT has jurisdiction to determine Tenancy Division applications up to $30,000 for rentalbond matters and $15,000 in respect to any other matter.

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Reading List – Books to Read

Title Author

Getting Past No William Ury

Getting to Yes Roger Fisher

The Secrets of Power Persuasion Roger Dawson

The Secrets of Power Negotiation Roger Dawson

The Negotiating Game Chester Karrass

Power Questions Andrew Sobel



Complaint Policy

If for any reason a course candidate (client) has for complaint in regard,

Course content

Assessment procedures

Training delivery

Trainer conduct

Or any other aspect of the course, you can put your complaint in writing to the companydirector

David JacksonCEOAustralian Salesmasters Training Co Pty LtdLevel 3, Suite 317, 30-40 Harcourt ParadeRosebery NSW 2018

Or visit our website: www.thesalesmasters.com and email us by completing the “CustomerSupport Form”. All efforts will be made to satisfy any and all complaints.

http://www.thesalesmasters.com/



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Rosebery NSW 2018

PO Box 638

Rosebery NSW 1445

PH: (02) 9700 9333 FAX: (02) 9700 8988

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www.thesalesmasters.com

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www.ebooksonly.com.au

www.simpletruthsonline.com.au

Email: [email protected]

http://www.thesalesmasters.com/

http://www.realestatetraining1.com.au/

http://www.dvdtraining.com.au/

http://www.ebooksonly.com.au/

http://www.simpletruthsonline.com.au/

mailto:[email protected]

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