End of Year YPIRE Events
After an awesome year of Young Professionals in Real Estate events, our final two are approaching fast!
Buy your tickets now for Auckland - Thursday 15 November and Wellington - Tuesday 20 November!
Check out the video from the last Auckland panel session, and buy your tickets now!
Tribunal Powers and Procedures Bill
The TTPL Bill passed its third reading this week and will become law in the near future. The new law enables the READT to award monetary compensation to complainants of up to $100,000 for unsatisfactory conduct.
We will update members when we receive confirmation of the date the new law will be in force.
DIA Guidance for Real Estate
The Department of Internal Affairs recently released its updated Guidance for the industry. REINZ has taken issue with some aspects of the Guidance and various other statements that have been made recently to REINZ by DIA in relation to real estate agent’s anti-money laundering compliance obligations.
REINZ has written to the DIA requesting an urgent meeting to address what we believe to be serious anomalies in the advice provided. We will update members as matters progress and will continue to lobby for clear and appropriate Guidance from DIA.
Changes to Agreement for Sale & Purchase - OIO
Changes to the Overseas Investment Act 2005 (OIA) came into effect on 22 October 2018. The new regime applies to all agreements entered into as of that date. In addition, the new Land Transfer Act 2017 (LTA) comes into effect on 12 November 2018.
New versions of the standard Agreement for Sale & Purchase of Real Estate, Particulars and Conditions of Sale of Real Estate by Auction and Particulars and Conditions of Real Estate by Tender will be released on 12 November 2018, incorporating the changes brought about by both the OIA and the LTA.
Changes are minor and include:
- Clause 10.6 of the Agreement for Sale and Purchase of Real Estate has been amended to include a standard 20 working day timeframe for OIO consent to purchase residential land
- Clause 19.1 of the Particulars and Conditions of Sale by Auction has been amended to include the situation where a purchaser has already obtained OIO consent
- Clause 20.1 of the Particulars and Conditions of Sale by Tender has been amended to include the situation where a purchaser has already obtained OIO consent
- Spaces which previously had “unique identifier(s) or C/Ts” now read “Record of Title (unique identifier)”
- Any reference to “computer register” or “certificate of title” now read “record of title”
- Any reference to “registered proprietor” or “proprietor” now read “registered owner”
- A message has been included on the ‘Notes’ page of the back of each agreement regarding the requirement for purchasers and vendors to have CDD completed on them by their lawyers
Highlighted copies of the amended agreements will be made available on 12 November 2018.
Case Update: Provisional value in Form 2 is appraised figure not initial offer price
Facts: The Licensee was marketing the Vendor’s Property. The listing agreement appraised the Property at $300,000 to $375,000. The Licensee then provided an appraisal which indicated the Property had a market value of $300,000 to $340,000. A conditional offer of $300,000 was made by a Company. A second conditional offer of $312,500 was accepted. Two directors of the Licensee’s Agency were also directors of the Company. Therefore, they were related persons for the purposes of the Real Estate Agents Act. This required the Licensee to obtain the informed consent of the Vendor for the transaction to proceed. The Vendor’s informed consent must be obtained in a prescribed form, Form 2. Form 2 contains two options: the first where an independent valuation has already been provided and the second where the independent valuation is to be provided within 14 days. Where the second option applies, the licensee must provide a provisional valuation. The licensee can then cancel the agreement if the independent valuation is higher than the provisional valuation. In this case, the Licensee entered the first conditional offer as the provisional value. When the second conditional offer was made, the Licensee amended the provisional value to match that offer. Ultimately, the sale did not proceed so the independent valuation was not provided. Nonetheless, the Vendor laid a complaint about the Licensee’s conflict of interest.
Decision: The question for the READT to determine was, what valuation should a licensee enter as the provisional valuation in Form 2? This required the READT to determine whether its earlier decision in Advantage Realty was correct. The READT decided that Advantage Realty correctly applied the law. The READT explained that the purpose of sections 134 and 135 of the Real Estate Agents Act is to protect the interests of the consumer. It is to ensure that the vendor knows about and consents to the acquisition, it is at a fair price, and the vendor is not taken advantage of. Parliament’s expectation was that if the client agrees to sign Form 2 before the independent valuation is provided, the provisional value should be as close as possible to the independent valuation. The licensee’s appraised figure should be the touchstone for this. The READT explained that every effort should be made to the parties to wait for an urgent independent valuation to be completed. If that is not possible, the provisional value should be the “next best thing”. The READT did not provide guidance on where the appraised figure is expressed as a range. However, the READT’s decision makes clear that licensees should make every effort to ensure that the provisional value matches current market conditions. Ultimately, the Licensee avoided a finding of unsatisfactory conduct as he was relying on the Agency’s incorrect internal policy. The fault lay with the Agency and as such the Agency was found guilty of unsatisfactory conduct and fined $5,000.
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.
Non-Verifiable Education
Anti-Money Laundering Nationwide Roadshow
We've had great attendance, with more than 1,500 enrolments across New Zealand. Every Salesperson needs to be trained on AML prior to January 1, so don't miss out on your opportunity to attend these sessions!
Find out more about the feedback so far.
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 New Plymouth, Wanganui, Palmerston North, and Gisborne!
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 - LAST CHANCE
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
The REA are sending letters soon to remind you to complete your 2018 Verifiable Training!
Book your online verifiable training here
Auckland Verifiable Training - LAST CHANCE!
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 - LAST CHANCE!
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; including Apple AirPods, a double pass to Laneway, a $200 voucher to Chuan Spa, and a $200 voucher to the Sugar Club.
Wellington YPIRE - End of Year Celebration
Tuesday 20 November
Held at Bethel Woods Bar with special guest Tal Meser - early start-up CEO of Tapi, who will be speaking about his journey and experience of being young in business.
Tickets are only $30 and spaces are limited, so get in quick! Spot prizes will be given away on the night; including Apple AirPods, a FitBit Versa, plus vouchers!
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.
2018 Auckland Bowls Tournament
Thursday 29 November
Join us for the 44th Annual Bowling Tournament! Each team is to be made up of at least one registered bowler and three other players.
Case Update: Tenancy Tribunal declines to end fixed term tenancy
Facts: The Landlord and Tenant signed a fixed-term tenancy agreement which commenced on 9 June 2018 and was due to end on 1 December 2018. The Tenant subsequently purchased another property. The Tenant gave notice to the Landlord that he would be leaving the Property on 5 October 2018. The Landlord declined to end the agreement. The Tenant was left paying rent pursuant to the agreement and a mortgage on the new property. The Landlord was left with an empty property and was unable to find new tenants.
Decision: The Tenancy Tribunal has the power to reduce or terminate a fixed-term tenancy where: there has been an unforeseen change in the applicant’s circumstances; there would be severe hardship to the applicant if the term is not reduced; and the applicant’s hardship would be greater than the hardship to the other party if the term is reduced. The Tribunal explained that the purchase of a property by the Tenant could not be viewed as an unforeseen change in his circumstances because it was a possibility from the outset of the tenancy. It was not sufficient that the Tenant had provided notice to the Landlord. While it was unfortunate that the Tenant had committed himself to paying a mortgage in the meantime, he had a legal obligation under the terms of the fixed-term tenancy agreement to pay rent until the end of the tenancy.
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
Creating a Sale & Purchase Agreement on the REINZ eForms platform - Auckland
Wednesday 28 November, 10am - 11am
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.
The 2018 REINZ Annual Report is now available and can be found 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.
