We've renovated our look
We are pleased to share our new look and feel for the REINZ brand. We felt it was time to introduce more colour and a contemporary look to reflect our long-term vision while still respecting our heritage. Our idea goes back to what REINZ’s members do – real estate. Being inspired from building plans, we can utilise this as a graphic language, from which we can communicate our messages. We look forward to continuing to provide support and leadership for you, our members, as The Voice of Real Estate.
Thank you for your continued support,
Bindi Norwell, Chief Executive
Case Update: Licensee sentenced for involvement in mortgage fraud.
Facts: The Licensee acted in four transactions involving properties being purchased and quickly on-sold to associated persons. In each case, the property was purchased around market value and was on-sold significantly in excess of market value. The Licensee acted on the on-sale transactions and was paid a $10,000 fixed fee. She was not required to market the properties or find buyers. These transactions had all the hallmarks of transactions which were intended to mislead lending institutions into thinking the properties were more valuable than they were. The READT found that the charge of misconduct was proven and it was required to sentence the Licensee.
Decision: The Licensee did not accept that she had been involved in any untoward dealings and she did not understand how she had breached standards required under the Real Estate Agents Act 2008. The READT interpreted this as the Licensee lacking contrition for her involvement and insight into the nature of the scheme which she had been involved in. This showed that the Licensee had a lack of judgement and may be at risk of behaving in a similar way in the future. The Licensee made several misconceived submissions in her defence. She argued that unless the scheme was proved to have existed, she could not have been guilty of misconduct. She also argued that the lending institutions would have been able to detect the fraud notwithstanding her involvement. These submissions were roundly dismissed by the READT. It noted that a suspension was suitable. This would impose a substantial financial penalty on the Licensee given that it would remove her ability to earn an income. The Tribunal gave some weight to the fact that the Licensee had sought the guidance from her manager at the time and had recently experienced real hardship in her personal life. In the circumstances, an 18-month suspension together with a censure and direction to undergo training was appropriate.
The above is intended for general information only and does not constitute legal advice and does not replace your agency’s internal policies and guidelines. Always check your agency’s guidelines, policies and information first and seek legal advice if you have any queries.
Meth details wiped from property history
Some properties with a history of low-level methamphetamine contamination will have those details wiped from their land information memorandum (LIM) reports.
Bindi Norwell, Real Estate Institute chief executive, said it was confusing for buyers and owners that the councils were not adopting a consistent approach to the Gluckman report.
Non-Verifiable Education
Anti-Money Laundering Nationwide Roadshow
REINZ and AML Solutions are running AML Training sessions throughout New Zealand between now and December through the regions, for Sales Agents, Compliance Officers and Administrators.
Registrations are now open via the REINZ Website.
Find training in your area here - Last chance to book for Nelson, Greymouth and Napier!
Watch the Salesperson AML Training webinar, or the Compliance Officer Training webinar.
Watch the video answering some frequently asked questions here.
If you would like to arrange individual training for your brand or office, please do not hesitate to contact AML Solutions at realestate@amlsolutions.co.nz
Hamilton - Property Management Workshop
Tuesday 13 November
Prospecting strategies and growing your rent roll, presented by Angela Little
Assessing Land for Risk Management - Free Breakfast Seminar
If you are buying or selling commercial or industrial property, or have property developer clients, it’s important to know what lies beneath the land! Historical contamination, hazardous materials from past construction and other environmental issues may cause additional costs if not assessed in time.
Book now for the English Seminar - 7.15am - 8.45am
Book now for the Mandarin Seminar - 10.00am - 11.30am
Verifiable Training
Auckland Verifiable Training
Tuesday 20 & Wednesday 21 November
Registration deadline Tuesday 13 November - a $50 per person late fee will apply after this date.
Upcoming Events
Auckland YPIRE - End of Year Celebration
Thursday 15 November
Dress to Impress! Held at Broadside Bar, Level 6 at Seafarers with special guest Michael Boulgaris, Luxury Real Estate Agent, who will be speaking about his journey and success.
Tickets are only $30 and spaces are limited, so get in quick! Spot prizes will be given away on the night (stay tuned for what you could be in to win!)
2018 Thames Bowls Tournament
Wednesday 21 November
All real estate agencies are invited to enter teams of three. If you cannot get a team of three from the industry (i.e. managers, salespeople, property managers or administrators), you can still have teams which must include two members from the industry and one other person.
Letting Fee Ban
The Residential Tenancies (Prohibiting Letting Fees) Amendment Bill passed its third reading this week and will become law on 12 December. From this date, it will be an offence to charge a tenant any fee relating to the grant, continuance, extension, variation, subletting, assignment or renewal of any tenancy agreement. The new rules do not however prohibit a landlord from recovering reasonable expenses on consenting to a tenant subletting, assigning or parting possession with the premises.
Case Update: Court of Appeal to decide contentious Residential Tenancies Act Issue
A landlord makes an application to the Tenancy Tribunal for orders under the Residential Tenancies Act 1986. The property is incorrectly consented to be a residential property. The tenant says the Tribunal has no authority to make such orders. Does it? The 2013 decision of Anderson v FM Custodians Ltd says no, and the 2018 decision of Parbhu v Want says yes. Leave has been granted in Parbhu v Want for the Court of Appeal to decide this question.
In Anderson v FM Custodians Ltd, the tenants occupied a defunct retirement village. The resource consent required that tenants be over the age of 55. The landlord applied for possession orders. Duffy J held that the provisions of the Residential Tenancies Act only apply to “premises that may be lawfully used for residential purposes by any person”. Her Honour did not see difficulty with this outcome because adverse consequences could be ameliorated by section 137 which allows for rent refunds in cases of prohibited transactions. This decision had wide-ranging consequences and limited the ability of the Tenancy Tribunal to hear disputes in similar cases.
In Parbhu v Want, a resource consent was granted for the living quarters of a commercial building to be used as residential premises, but it was only be to used by the caretaker. The owners of the property rented it to a tenant who was not the caretaker. Both parties subsequently made claims in the Tenancy Tribunal. Cooke J disagreed with the case of Anderson. His Honour found that the Tenancy Tribunal has jurisdiction to hear disputes where the tenancy involves inconsistency with or contravention of the Residential Tenancies Act or other legal requirements. This approach was consistent with the scheme and purpose of the Residential Tenancies Act and prevented inconsistencies in the Act’s application.
Disclaimer: The information in these case summaries is for general informational purposes only and may only discuss some, not all, aspects of a case. It does not constitute legal or other professional advice and does not replace your company’s internal policies and guidelines. Always check your company’s guidelines, policies and information first and seek legal advice if you have any queries.
REINZ and Real-iQ deliver the NZ Certificate in Residential Property Management
Lift your professionalism and standards and prepare yourself now for the potential industry regulation.
Click here for more information.
Property Management Induction Bootcamp Auckland
Tuesday 27 November
Aimed at entry level Property Managers. Facilitated by Real-iQ, REINZ Members can get 15% off when using the promo code REINZPMI
Face-to-face training
Enhanced Statistics - Auckland
Thursday 15 November, 10am - 11am
PropertySmarts Training - Auckland
Thursday 15 November, 11.15am - 12.15pm
Webinar training
Market Intelligence Webinar
How to create a Market Insights Report
2018 REINZ AGM
The Official Notice of Annual General Meeting of members will be held on Monday 26 November 2018 at Events on Khyber, 155 Khyber Pass Road, Grafton.
Email agm@reinz.co.nz to register, note apologies, or submit any items of general business.
We are pleased to announce that the following nominees for REINZ Life Membership were unanimously approved by the REINZ Board on 30 October.
Graham Crews
Euon Murrell
Brian Waldegrave
The nominees will be voted upon by members at the REINZ AGM on 26 November
Second Generation District Plan - Dunedin City Council
The 2GP Decisions will be publicly notified on 7 November 2018. The DCC invites you to attend a briefing on Tuesday 13 November.
This briefing will cover some of the main changes between the Operative District Plan (2006) and the 2GP Decisions Version (2018) and how provisions will apply during the appeals phase.
Click here for more.
Agent sale vs private sale: What gets the better deal?
REINZ research has identified that across New Zealand a vendor can achieve up to an 11% premium by selling their property with an agent vs selling it themselves - even when taking commission payments into account.
Read the full article here.
REINZ works in partnership with NetYourJob recruitment to provide maximum industry coverage when you’re looking for real estate staff. NetYourJob can provide REINZ Members with competitive marketing rates for job advertising. Contact NetYourJob on 0800 638 968 to find out more or click here to view new jobs this week.
