Important AML Warning
Lawyers obligations under anti-money laundering legislation began on 1 July. This is relevant to real estate agents because from 1 July, lawyers are required to verify the identity of their clients, including their vendor and purchaser clients.
Many lawyers will not agree to act for someone until they have been able to complete the identity verification process, which can take days and sometimes weeks, particularly where trusts and companies are involved. If the identity cannot be verified, the lawyer cannot act for the client and therefore conditional periods can lapse, property settlements can be delayed and, worst case, deals can fall over.
It is important that vendors and purchasers are made aware of identity verification requirements. We previously circulated to members the NZ Law Society info sheet on identity verification for distribution to vendors and purchasers. REINZ has also produced a very simple flyer that members can provide to vendors and purchasers - we recommend you make copies available at your open homes.
For any questions regarding this matter, or anti-money laundering generally, please contact REINZ Legal Counsel Lisa Gerrard.
Last Chance
Property Management Workshop - Auckland
Monday 9 July
Key areas of compliance to keep you safe!
Masterclass for Business Managers - Extended date!
Thursday 12 July
As a manager in a competitive market, you need to be at the top of your game so your team get results.
Verifiable Training
Palmerston North Verifiable Training
Wednesday 25 and Thursday 26 July
Registration deadline Monday 16 July - a $50 per person late fee will apply after this date.
Nelson Verifiable Training
Wednesday 25 and Thursday 26 July
Registration deadline Monday 16 July - a $50 per person late fee will apply after this date.
Kerikeri Verifiable Training
Wednesday 8 and Thursday 8 August
Registration deadline Monday 30 July - a $50 per person late fee will apply after this date.
Non-Verifiable Training
Tom Panos presents at REINZ!
Monday 6 August
Australasia's leading real estate coach is presenting on 'How to dominate the digital connection economy in real estate' at the REINZ Centre of Excellence.
Don't miss out, as over half the spaces are already filled for this session!
Property Management Workshop - Christchurch
Wednesday 22 August
REINZ comes to Christchurch! Key Prospecting Strategies and Growing your Rent Roll.
16 BRAND NEW 2018 Webinars available
| Region | Dates | Location | |
|---|---|---|---|
| July | |||
| Nelson | 25 - 26 | Trailways Hotel | Book Now |
| Palmerston North | 25 - 26 | Hotel Coachman | Book Now |
| August | |||
| Kerikeri | 8 - 9 | Kerikeri RSA | Book Now |
| Napier | 23 - 24 | Napier Conference Centre | Book Now |
| September | |||
| Tauranga | 5 - 6 | Club Mount Maunganui | Book Now |
| Auckland 2 | 19 - 20 | REINZ Centre of Excellence | Book Now |
| October | |||
| Christchurch 2 | 17 - 18 | The Atrium | Book Now |
Conference Tickets available
Residential Property Management Conference
Friday 3 August, 8am - 5.30pm
Join us for our annual RPM Conference for 2018, held at the Pullman Auckland Hotel. Hosted by Simon McKinney and featuring keynote speaker Hon Phil Twyford.
Please register separately if you wish to attend the cocktail party where we will announce an inaugural Property Management Award.
Download the poster
Commercial & Industrial Conference
Friday 3 August, 8am - 5.30pm
Join us for our annual C&I Conference for 2018 and earn 6.0 NV hours. Hosted by Simon McKinney and featuring keynote speaker Hon Phil Twyford.
This year our conference will be held at the, Pullman Auckland Hotel. Please register separately to attend the evening cocktail party giving you the opportunity to network with colleagues.
Download the poster
Conference Cocktail Evening
Friday 3 August, 5.30pm - 8pm
Join us for our end of conference cocktail party at the Pullman Auckland Hotel. This is included in your conference registration but get in quick as there is limited space!
2018 REINZ Awards for Excellence
Tuesday 28 August, 6pm - 10pm
Entries are now open
Buy Gala Dinner Tickets or 5 Ticket discount package or 10 Ticket discount package
Download the invitation
Rural: Mycoplasma Bovis Webinar now available
Watch the webinar now
Emil Murphy, Ministry for Primary Industries, presents MPI’s response to Mycoplasma Bovis and implications for New Zealand’s rural real estate.
| July | |||
| YPIRE Wellington Launch Event - SOLD OUT | 19 July | 6pm – 9pm | C.G.R Merchant & Co |
| August | |||
| REINZ Property Management Conference | 3 August | 8am - 5.30pm | Pullman Hotel, Auckland |
| REINZ C&I Conference | 3 August | 8am - 5.30pm | Pullman Hotel, Auckland |
| Conference Cocktail Evening | 3 August | 5.30pm - 8pm | Pullman Hotel, Auckland |
| REINZ Awards Evening | 28 August | 6pm - 10pm | Cordis, Auckland |
| September | |||
| Women's Breakfast | 27 September | 7.30am - 10am | Pullman Hotel, Auckland |
| October | |||
| Australasian Auctioneering Championships Draw | 14 October | 6pm - 7.30pm | REINZ Centre of Excellence, Auckland |
| Australasian Auctioneering Championships Heats | 15 October | 10am - 5pm | Q Theatre, Auckland |
| Australasian Auctioneering Championships Senior Finals | 16 October | 10am - 5pm | Q Theatre, Auckland |
| Australasian Auctioneering Championships Gala Dinner | 16 October | 6.30pm - 10.30pm | The Maritime Room, Auckland |
MBIE addresses questions on meth testing, AirBnB, tenant damage, and more
Tenancy Services from the Ministry of Business, Innovation and Employment (MBIE) recently held a road show across Auckland, Christchurch and Wellington to address topical matters such as meth testing, subletting on AirBnB, intentional versus careless tenant damage and upcoming residential tenancy law reforms.
Click here to read the Tenancy Services' answers to the top 10 questions asked at the road show.
Case Update: Tribunal determines no tenancy agreement exists
Facts: Mr Z filed a claim in the Tribunal to seek a refund of a deposit paid to Ms C. Ms C alleged there was a binding tenancy agreement and claimed rent from Mr Z. The key question for the Tribunal was whether there was a concluded tenancy agreement.
The relevant facts were that after viewing the property, Mr Z advised Ms C that he was interested in renting it. Ms C asked for $2,000 and referred to this payment as a security deposit/option fee/bond for the tenancy. Mr Z paid the money. No tenancy agreement was signed at this stage. Ms C said the tenancy agreement could be signed when the other landlord arrived in New Zealand from overseas.
Before a tenancy agreement was signed, Mr Z told Ms C that he no longer wanted to proceed and wanted a refund of his option fee. Ms C argued that there was a tenancy agreement and she was keeping half of the option fee for lost rent and would pursue him for any shortfall in rent after she rents the property to another tenant.
Ms C refunded $1,500 after knowing Mr Z filed a claim in the Tribunal. However, Mr Z did not withdraw the claim and Ms C subsequently filed her own claim seeking lost rent.
Decision:The Tribunal found there was no tenancy agreement between the parties and the $2,000 that Ms C charged was “key money” that was prohibited under the Residential Tenancies Act (RTA).
In reaching this decision, the Tribunal considered the parties negotiated on the basis that they would be bound when the tenancy agreement was signed (for example, they discussed signing it when the other owner return from overseas), and since the parties never reached agreement on the key terms of a tenancy agreement, such as whether this was a fixed or periodic tenancy.
The Tribunal also ordered Ms C to refund the balance of $500 to Mr Z as she was not permitted to charge the $2,000 security deposit. The RTA prohibits the charging of “key money” unless it falls under limited exceptions. None of the exceptions applied in this case.
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.
New REINZ Resource: Earthquake-affected properties
We have put together an Information Sheet on earthquake-affected properties, to help licensees navigate what can be a complex area in terms of legal and insurance issues. Several years have passed since the 2010 and 2011 Canterbury earthquakes but new issues are still emerging, increasingly with properties that have been on-sold many times or with repair works that are discovered to be substandard, years after it was done.
Click here for more advisory resources from REINZ.
Case Update: Licensee fined for lodging caveat over client’s property to secure commission
Facts:The REA decided to inquire into the Licensee’s conduct, after receiving a complaint from him about a licensee from another agency.
The relevant facts (which were not disputed by any party) were that the vendor clients had a general agency agreement with the Licensee’s agency, and with Agency Z. The Licensee introduced a purchaser to the property. Subsequently, a licensee (Licensee Y) working for Agency Z introduced the same purchaser to the property. The purchaser made an offer through Agency Z.
Correspondence and meetings took place between the agencies, but the dispute was not resolved. The vendors had instructed their solicitor not to release the commission until the dispute was resolved. One month before settlement, the Licensee lodged a caveat on the property’s title to secure the commission. Two days before settlement, the vendors instructed their solicitor to release full commission to the Licensee to ensure settlement can proceed.
Decision:The CAC found the Licensee’s conduct in lodging a caveat over his clients’ property to be unprofessional and placed the protection of his agency’s entitlement to commission over and above what was in the vendor’s best interests.
The Licensee was found guilty of unsatisfactory conduct and fined $3,000.
Whilst the CAC noted the Licensee had a legitimate claim of prior introduction, it was concerned that the Licensee had involved the vendors in what was essentially a dispute between two competing agencies for the commission. By placing the caveat, the Licensee exposed the vendors to potentially significant late settlement default penalties and consequences, when the commission issue was only between his agency and Agency Z.
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.
REINZ announced as finalist in Brand/Campaign category of inaugural NZ LGBTI Awards
After 3 months of nominations and more than 1,200 submissions from around the country, The New Zealand LGBTI Awards announced that REINZ was a finalist in the Brand/Campaign category.
Voting is now open and we would love your support.
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.
