In The Know
7 August 2019
Click the headings below to read more or visit the Property Management page
Does a vendor need to disclose the grisly history behind a house to potential buyers?
Bindi Norwell spoke with Breakfast on 1 this morning about disclosing whether a property has had a "dark history".
Case Update: A reminder to always back up your documents
This case involved a complaint made by a construction company owner (complainant) against a Branch Manager (Licensee).
The complainant had concerns pertaining to the marketing and sale of the properties through the complainant’s company between 2017 and 2018 and had raised this with the Licensee.
The complainant claimed that:
- The Licensee took his intellectual property and used it to market a competitor’s listing;
- There was a conflict of interest as the Licensee was also marketing a competitor’s listing while also representing the complainant;
- The Licensee had been providing financial advice to potential purchasers;
- The Licensee failed to provide the complainant with appraisals for numerous properties;
- The Licensee failed to invoice the complainant with the correct amount of commission; and
- The Licensee failed to provide the complainant with the Approved REA guides.
The Licensee responded and stated that:
- The product was not unique and could not be deemed to be intellectual property;
- A Property Investment Analysis (PIA) was a discounted cash flow spread sheet tool that was provided to potential purchasers;
- The correct amount was invoiced for the sale;
- He regularly marketed similar properties for different developers; and
- could confirm that he supplied CMA’s for two of the properties, one of the properties did not require it and he was unable to verify the three remaining properties.
Finding
The complainant claimed that the marketing material was similar to that of the competitor however the Complainants Assessment Committee (CAC) stated that this did not amount to real estate agency work under the Real Estate Agents Act 2008 and could not determine this claim.
The CAC noted that the Licensee addressed the complainant’s concerns in relation to the conflict of interest in marketing a competitor’s property yet, the complainant continued to allow the Licensee to market the complainant’s properties. The CAC also referred to a case where it was emphasised that the principle of real estate agencies, by their very nature and are not exclusive to one client in their business operation.
The CAC also decided that providing financial advice fell outside the meaning of real estate agency work and that it was an issue for other agencies.
The Licensee provided an email evidencing an explanation as to the incorrect commission and being accepted by the complainant. No action was taken in this respect by the CAC.
The CAC accepted that the Licensee provided the Approved REA Guides and CMAs for several properties as evidenced by the complainant’s signature and initials in the pertinent sections of the agency agreements. The CAC also accepted the Licensee’s explanation in that his computer suffered a hard drive failure hence, he could not provide the CMA’s for other three properties.
A finding of unsatisfactory conduct was not made.
Key Takeaways:
- This case reiterates the importance of addressing vendor concerns and that this should be addressed in writing.
- It is also good practice to back up electronic copies of important documents pertaining to agency work.
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.
AML Annual Report Webinar with the DIA
The Department of Internal Affairs (DIA) has recently released a webinar on the Annual AML/CFT Report - click here to access the webinar
Some of the key messages from the webinar are conveyed below
- It is now the annual AML/CFT reporting period for members (real estate agents) who are captured under the AML/CFT Act
- The Annual report is a confidential report and must be submitted to the DIA as part of your obligations under the AML/CFT Act
- The first annual report is due 31 August 2019
- You can submit your annual AML/CFT report through the new web portal AML Online but before you do this, you will need to register via the DIA’s website
- Click here to access the quick reference guide created by the DIA, to help agents understand their obligations at a glance
Verifiable Training
Napier Verifiable Training
Wednesday 21 & Thursday 22 August
Registration deadline Thursday 15 August - a $50 per person late fee will apply after this date.
Tauranga Verifiable Training
Wednesday 4 & Thursday 5 September
Registration deadline Thursday 29 August - a $50 per person late fee will apply after this date.
Property Management Roadshow
Auckland - Dog Workplace Safety
Thursday 22 August
Visiting properties with dogs? Keep safe around dogs by coming along to this course. Learn how to 'read' dogs, dog expressions and what to look out for so you stay safe when visiting properties.
Book now
Hamilton - The RTA and Keeping Safe Around Dogs
Wednesday 4 September
Book now
Christchurch - The RTA and Keeping Safe Around Dogs
Wednesday 25 September
Book now
Auctioneering Fresh Starter Course
We're thinking of running another course this year.
Please register your interest with Lisa Stern
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| August | |||
| Napier | 21 - 22 | Napier Conference Centre | Book Now |
| September | |||
| Tauranga | 4 - 5 | Waverly on Wairoa | Book Now |
| Auckland 2 | 25 - 26 | Events on Khyber | Book Now |
| October | |||
| Christchurch 2 | 16 - 17 | The Atrium | Book Now |
Superstars Breakfast - Strategies for Success in Challenging Times - Tomorrow!
Thursday 8 August | GridAKL
Join us for this year's Superstars Breakfast where we will be discussing 'The Strategies for Success' with our panel, hosted by Shane Cortese from Harcourts Cooper & Co.
This year's panel is made up of: Edward Pack from Bayleys Ponsonby; Nick Wilson from Barfoot & Thompson Auckland City; Nicky Malloy from Harcourts Henderson Heights; Ritesh Verma from Property Brokers Whanganui; Rohan Thompson from Ray White Mt Roskill; and Colleen Strachan from UP Real Estate.
Find out more details, or book now here.
2019 REINZ Awards for Excellence Gala Dinner
Tuesday 27 August, Cordis Auckland
We are returning to Cordis Auckland for another Gala Dinner presentation of awards with MC Laura McGoldrick.
Buy tickets for the Gala Dinner here.
Inspire | Motivate | Connect - 2019 YPIRE Conference
Wednesday 18 September
For young professionals in real estate, those new to the industry, the young at heart or anyone interested in the amazing speaker lineup.
With a great lineup of speakers including Josh Tesolin, Tom Panos, Jake Millar and Lisa King, the 2019 YPIRE Conference is one you do not want to miss!
Group booking discounts available for 5 or more!
For all REINZ Events, click here.
| August | |||
| Superstars Breakfast | 8 August | 7.30am - 10am | GridAKL |
| Awards for Excellence Gala Dinner | 27 August | 6pm - 10pm | Cordis Auckland |
| Septmber | |||
| Inspire | Motivate | Connect Conference | 18 September | 10am - 7pm | Shed 10, Auckland |
Milk solids per hectare
Last month REINZ released the first of our Rural Statistics updates; 'Bareland' and 'Sale As Is' were added as filter options as a result of feedback from our rural members.
Today we are happy to announce the launch of another new rural insight in the Statistics platform - Milk Solids Per Hectare is now live and can be reported on in the statistics portal along with all other key insights like median sale price, price per hectare and sales count.
This new metric enables rural agents to create tables, graphs and comparison reports based on Milk Solids productivity.
As always, REINZ will constantly be evolving our statistics and if you have any recommendations or enhancement suggestions, you can email them to the team at statistics@reinz.co.nz
Multimillion dollar home sales in New Zealand
New data released by REINZ reveals that the number of million-dollar homes sold in the first half of 2019 was an 11.2% decrease on the first half of last year. That is 628 fewer homes over the million-dollar mark, down from 5,591 to 4,963.
This week on the blog: Top 5 ways to stand out from the competition
Changes in circumstances, such as a new job or moving into desirable school zones for your children are some of the reasons that people will sell their property and move. Top agents recognise the value of ongoing relationships and keep in touch with buyers and sellers in their local area.
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.
