real estate agents authority provides greater protection for consumers


Thinking about buying a new home, or selling? Consumers can now have greater confidence in the real estate industry with the Real Estate Agents Authority opening for business late last month.

The Authority, a new Crown entity established under the Real Estate Agents Act 2008, brings a new regulatory regime to the industry and provides a stronger disciplinary and complaints process for dealing with complaints against agents.

“The Authority has a dual role: to promote and protect the interests of consumers and raise industry standards,” Authority Board Chair Kristy McDonald, QC, explains.

Key changes under the Act, which will be administered by the Authority, include:

  • Compulsory licensing for all real estate agents, including minimum standards for qualifications;
  • A register for licensed real estate agents so buyers and sellers can check an agent is registered, and see if they have had any complaints or discipline registered against them;
  • An independent and transparent complaints process;
  • A compulsory Code of Professional Conduct and Client Care;
  • Consumer guidelines to help people when entering into an agreement with an agent, and when making a purchase and sale agreement for residential property.

One of the key changes includes a publicly accessible register of all licensed agents.

“Consumers will be able to check whether the agent is licensed and whether they have been subject to any disciplinary action, going back three years. This allows the consumer to make an informed choice of agent or salesperson.”

Also look out for the approved Guides – which must be given to consumers buying or selling residential property. The Guides outline your rights and responsibilities, and define terms you might come across in your contract with your agent, or the contract when you buy or sell a home.

One of the major changes consumers can be pleased about is an independent, transparent process for complaints. The new complaints and discipline processes provide a range of sanctions available to Complaints Assessment Committees (CAC) if they find a licensee guilty of unsatisfactory conduct – upping the penalties significantly from $750 to a as much as $100,000.

“These sanctions focus on putting things right for the consumer and re-educating the licensee. For the more serious matters, a CAC will lay a charge before the Real Estate Agents’ Disciplinary Tribunal, and that charge will be prosecuted on behalf of the consumer by the Authority.”

The Authority has also developed a compulsory Code of Professional Conduct and Client Care.

“This code, unlike many such codes of conduct or ethics, is enshrined in the regulations, so has the force of law.  It will become the benchmark by which standards of conduct will be measured.”

Visit www.reaa.govt.nz for more information or view the new guides below:

• Buying or Selling a Property? Fact Sheet [PDF, 177.5 kb]
• Licencing Fact Sheet [PDF, 174.8 kb]
• Commission Fact Sheet [PDF, 190.2 kb]
• Auctions Fact Sheet [PDF, 181.5 kb]
• Tenders Fact Sheet [PDF, 185.5 kb]

To view all the new guides go to reaa.govt.nz