In The Know
2 October 2019
Click the headings below to read more or visit the Property Management page
A Call For Change - Better Property Management
Help us protect tenants, landlords & property managers!
We've already received a number of submissions from people sharing their stories through the A Call for Change website and now have more than 50 companies and organisations backing this campaign.
Make sure if you have a story to tell, that you submit it via www.acallforchange.co.nz and help us build a collection of case studies as to why property management should be regulated.
Follow the official Facebook page here.
Scheduled website outage
The REINZ website, the REINZ Statistics portal and the REINZ eForms portal will be undergoing scheduled maintenance this Saturday 5 October from 11pm and will be offline for approximately 2-3 hours.
We apologise for any inconvenience this may cause.
Life Membership Nominations
Nominations for Life Membership of the Real Estate Institute of New Zealand are now open and close on Wednesday 23 October at 5pm.
From 29 October 2019, the Real Estate Agents Disciplinary Tribunal will be able to order up to $100,000 compensation for an agent’s unsatisfactory conduct
This is in addition to the $100,000 compensation that they can order for an agent's misconduct.
The remaining provisions of the Tribunals Powers and Procedures Legislation Act 2018 (TPPL) will come into effect on 29 October 2019.
This means that section 110 (Determination of charges and orders that may be made if charge proved) of the Real Estate Agents Act 2008 (Act) will be amended to reflect the below:
If the Real Estate Agents Disciplinary Tribunal finds that an agent has engaged in unsatisfactory conduct and it appears that they have caused a person to suffer a loss as a result of their unsatisfactory conduct then, the Tribunal can order the agent to pay up to $100,000 in compensation but only if:
- the agent’s unsatisfactory conduct is more than a minor or technical breach of the Act; and
- the order is in line with what a court of competent jurisdiction would make in relation to a similar claim.
REINZ advocated against the implementation of this provision as REINZ was of the view that adding to the Tribunal powers to award civil damages in relation to unsatisfactory conduct would erode the distinction between the two levels of conduct (misconduct and unsatisfactory conduct). REINZ also provided evidence that that the disciplinary regime was working well based on the Real Estate Authority’s own research completed in June 2016. However, it is clear that Parliament could see more benefit arising out of increasing the Tribunal’s powers as opposed to not doing so.
We remind agents of the importance of adhering to the Code of Conduct Rules considering the financial repercussions associated with a finding of unsatisfactory conduct.
Agents should also be checking their insurance policies to ensure that they have appropriate cover.
Case Update: Licensee threatened to kill vendor and her brother
On 21 June 2018, the Real Estate Authority received a complaint against Licensee 1 and Licensee 2 from the complainant (vendor).
Facts:
- The property was sold for $1,066,000 to a purchaser who was introduced by Licensee 2
- The vendor’s brother was renting the property at the time of the sale
- Settlement of the property was brought forward from 5 July 2018 (original settlement date) to 30 May 2018 (earlier settlement date) and the purchaser required vacant possession
- Threats were made by Licensee 1 to the vendor.
The complaints are detailed below:
Agency Agreement and Appraisal
The vendor claimed that Licensee 1 had not provided an agency agreement to her. Licensee 1 provided the Complaints Assessment Committee (CAC) with a signed agency agreement dated 6 November 2017 therefore, this claim was dismissed.
Licensee 1 provided a copy of an undated Comparative Market Appraisal (CMA) after the agency agreement was signed. This is a breach of Rules 10.2 and 10.6 of the Code of Conduct Rules 2012 which evidences that the appraisal must be provided before the agency agreement is signed.
Early settlement
The vendor agreed to bring settlement forward to the earlier settlement date and claimed that the purchaser agreed to let her brother remain in the property until the original settlement date, but this was not recorded by Licensee 1. The CAC accepted that Licensee 1 was not involved in this variation.
Licensee 1 made threats against the vendor and vendor’s brother
On 21 May 2018, the vendor received a number of WeChat (messaging phone application) messages from Licensee 1 that, once translated, indicated that Licensee 1 was threatening to kill the vendor and her brother.
Licensee 1 admitted making the threats however, claimed that they were empty threats and were made in a private/personal capacity. Licensee 1 stated that the vendor was contacting her about issues relating to the sale of the property and wanted her to help find alternative accommodation for her brother and Licensee 1 responded by stating that she could not help as she was looking after her unwell mother. Licensee 1 stated that she was feeling stressed and frustrated as a result of the vendor’s continuous contact and lack of empathy towards her situation.
The CAC found that Licensee 1’s threats were made in her professional capacity however, noted that both parties used profane and abusive language as part of their regular way of communicating with one another.
The CAC found that Licensee 1’s threats would reasonably be regarded by agents of good standing as being unacceptable and therefore, was likely to bring the industry into disrepute.
Claims pertaining to agreed price expectation, marketing, disclosure of relationship, offer and passing on confidential information were dismissed.
Finding:
A finding of unsatisfactory conduct was made.
Tips:
1. Agents must always provide a CMA before the agency agreement is signed
2. Agents must never threaten their clients and stray from their professional obligations.
Government plan to eradicate Mycoplasma bovis succeeding
Mycoplasma bovis (M.bovis), a bacterial disease affecting cattle was detected in New Zealand in 2017 and caused significant biosecurity concerns. On 28 May 2018, the government, along with the dairy and beef industries, made the decision to eradicate M.bovis via a 10 year programme.
The latest surveys denote that the government’s attempt to eradicate M.Bovis has been succeeding as indicated by the apparent prevalence in dairy herds at just 0.55. The small number of newly detected herds since implementation of the programme supports the assumption that there is not widespread, unlinked disease in the dairy herd population.
To read the Ministry of Primary Industries proposed risk analyses and risk management strategy, click here.
Unsure about something? Head to Advisory Resources on our website
Advisory Resources is a virtual library that provides members with a variety of information, best practice guides and templates to assist with the compliance and legal aspects of real estate.
You can find help on various topics such as:
- Agency Agreements
- Anti-Money Laundering
- Advertising and Marketing
- Auctions
- Conjunctional Arrangements
- Disclosure
- Overseas Investment Act
- Privacy
- Tenders
Click here to access Advisory Resources
Feel free to direct any compliance related questions you have to advisory@reinz.co.nz
Verifiable Training
Christchurch Verifiable Training
Wednesday 16 & Thursday 17 September
Registration deadline Thursday 10 September - a $50 per person late fee will apply after this date.
Auctioneering Fresh Starter Training - LAST CHANCE
Monday 7 & Tuesday 8 October
Fun, interactive and engaging 2-day rookie auctioneer training facilitated by Mark Sumich. NV = 7 hours
Book now
Christchurch Workshop - LAST CHANCE
Tuesday 8 October
Earthquake claims, withholding information, misconduct.
Book here.
Auckland C&I Workshop
Wednesday 25 October
Unit Titles Act, disclosure, commission disputes and more.
| Book here
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| October | |||
| Christchurch 2 | 16 - 17 | The Atrium | Book Now |
2019 REINZ Auckland | Waikato | Bay of Plenty | Taupo Golf Tournament
Monday 18 November, St Andrews Golf Course, Hamilton
Entry includes green fees, prize table, first drink and after match platters.
Thank you to our sponsors Ingham Prestige Mercedes-Benz and Skills.
This event is open to REINZ Members, partners and clients registrations close on Friday 8th November (unless sold prior). Registration will be open on the day from 10:30am with the Matte Black Restaurant open for Morning Tea, Lunch and Coffee. Shotgun start at 12:00pm.
Book here
2019 Auckland Bowls Tournament
Thursday 28 November, Balmoral Bowling Club, Auckland
Each team is to be made up of at least one registered bowler and three other players. Please register the whole team in a single entry.
The tournament is open to REINZ agency members, their salespeople and administration staff. Friends and Family are welcome. At least one player from each team must have a REINZ ID number.
Registration closes Monday 25 November, 5pm.
Book here
| November | |||
| 2019 REINZ Golf Tournament | 18 November | 12pm - 5pm | St Andrews Golf Course, Hamilton |
| 2019 REINZ Bowls Tournament | 28 November | 9am - 3pm | Balmoral Bowling Club, Auckland |
Register for webinar training with one of our digital product experts
When you need a refresh or want to learn how to use one of the REINZ products, sign up for one of the following webinars:
Introducing FlexiSign - Thursday 3 October, 12:30pm
REINZ Statistics Portal - Getting Started - Friday 4 October, 12:00pm
PropertySmarts - From Search to CMA - Friday 4 October, 1:00pm
This week on the blog: 5 smartphone photography hacks you need for social media success
Your lively, personal photos are the fast path to evoking an emotional response from your potential buyers. But it must be good. So here’s our top 5 tips to getting it right.
Wellington Report 2019: Is life easier for home owners than for renters?
Bindi Norwell, REINZ Chief Executive says the fact it is cheaper to own than rent in so many suburbs is good news for first-home buyers. But accessing bank loans is still key, and major trading banks are taking "an extremely conservative approach to lending".
Read more about the report here
End of year funding for Women's Leadership Development available
Residual funding is available to support the development of female leaders across NZ’s real estate and property sector.
Women & Leadership New Zealand is providing women with grants of between $2,500 and $8,000 to enable participation in one of three programmes that cover such things as reinforcing resilience and wellbeing, engaging with challenge and conflict, creating future focus, leading authentically and driving performance.
Find out more and register your interest by completing the Expression of Interest form here prior to 22nd November 2019.
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.
