The Real Estate Agents Authority

A new era for professionalism for our industry…

Acting as Purchaser or Vendor in over 270 Sale and Purchase Agreements before starting in agency work made me critical of the industry. The Fair Trading Act 1986 and Consumer Guarantees Act1993 seemed to bring sufficient a change to countenance becoming a REINZ qualified salesperson in 1997, however further progress was hampered by lack of change to the Real Estate Agents Act 1976. That has now been remedied. The Real Estate Agents Act 2008 is in effect from 17 November 2009.

The Act's stated purpose is to protect the interests of consumers in respect of transactions that relate to real estate and to promote public confidence in the performance of real estate agency work.

                                                                                                                             
The Real Estate Agents Authority has been established…

Key elements of the new Act include…

• Agents, branch managers and salespersons must all be licensed individually.
• The Authority will be responsible for licensing, complaints, disciplinary action in relation to unsatisfactory conduct, industry standards, and providing information for consumers.
• New complaints and disciplinary processes are introduced, including the appointment of Complaints Assessment Committees and the establishment of an independent Real Estate Agents Disciplinary Tribunal
• New responsibilities apply to real estate agents, including duties in relation to the information that must be provided to consumers

A Public Register is to be kept...

The Real Estate Agents Authority will maintain a register of licensees that is available to the public, to enable you to make an informed decision when choosing a real estate agent, branch manager or salesperson. You will be able to:

• check whether the person you are considering dealing with is licensed
• find out how to contact the agent, branch manager or salesperson
• check the history of the person's licence
• check the disciplinary record of an agent, branch manager or salesperson.

A Licensee must be able to show you their licence if asked. See my Licence here

A Code of Professional Conduct and Client Care... 

The Authority's Code of Conduct and Client Care is established by the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2009. It sets out the standard of professional conduct and client care required of agents, branch managers and salespersons. The Code applies to all aspects of real estate agency work and will be used as a reference point for discipline.

The Code covers:

• standards of professional competence and conduct
• reporting misconduct or unsatisfactory conduct
• awareness of duties and obligations under the Act
• client care and dealings with customers
• obligations to provide information about complaints. 

It is important to note that the Code should be read in conjunction with the Real Estate Agents Act 2008 and regulations and does not repeat the duties and obligations that are included in the Act and regulation. The Code must be displayed in real estate offices and be available to anyone on request. A copy of the Code can be accessed on the link above.

Approved guides to be given...

To support consumer protection and ensure you have the information you need at two important stages of the process of buying or selling residential property, two approved guides are being developed. After 17 November 2009, an agent must not enter into an agency agreement with you for the sale of a residential property unless he or she has provided you with a copy of the approved guide relating to agency agreements, before the agreement is signed. You must sign an acknowledgement that you have received the guide. Similary, before you sign a sale and purchase agreement for a residential property the agent must give you a copy of the approved guide relating to sale and purchase agreements. You must sign an acknowledgement that you have received the guide. Residential Property Sale & Purchase Agreements Guide Residential Property Agency Agreements Guide

A Sole agency and diclosure benefits...

The 2008 Act allows you to cancel a sole agency agreement by 5pm on the first working day after you have been given a copy of the agreement. If an agent carried out any agency work before the agreement is cancelled, and that work results in the conclusion of a contract concerning a property transaction, the agency agreement will be legally binding. If the sole agency agreement relates to residential property and is for a term longer than 90 days, both the client and the agent can cancel at any time 90 days after the agreement was signed.

If a real estate agent, branch manager, or salesperson is going to benefit financially, other than by way of the commission payable under the agency agreement, they must disclose this to you in writing in the agency agreement.

A new Complaints Procedure...                              

The self-regulatory complaints and disciplinary system that operated under the 1976 Act was not seen by the public as being sufficiently independent, transparent and effective. The 2008 Act introduces a new system, which will provide transparent and fair processes for all parties involved in a complaint.

Other existing consumer protections, such as those provided bt the Fair Trading Act 1986 and the Consumer Guarantees Act 1993, will also continue to be available to consumers.

The 2008 Act allows any person to complain to the Real Estate Agents Authority about the conduct of a licensee or former licensee. It will be possible to make a complaint about a wider range of matters under the 2008 Act than is currently possible under the 1976 Act.

Leaders Real Estate 1987 Limited must ensure we maintain our written in-house procedures for dealing with complaints and dispute resolution. Consumers have the choice whether to lodge the complaint first with the Company then invoke the REAA Complaints Procedure if necessary, or to go straight to the Authority Complaints system.

       
Bruce Mitchell |free2mobile 0800 635 942 Personal profile    Email me