In order to help us understand the market and implications of the upcoming foreign buyer ban, would you mind taking a few minutes to answer these questions. To help encourage you even further, everyone that completes our survey will go in the draw to win one of two bottles of Moët.
Short, Sharp and Practical Auctioneer Workshop
Monday 19 March
Join NZ’s last 2 Australasian auctioneering champs Daniel Coulson and Andrew North for discussions on the pros/cons of vendor bidding, vendor/auctioneer relationship and salespeople’s involvement on the auction floor. Barrister Mr Robin McCoubrey will be along to discuss a couple of READT auctioneering cases. Great discussion and networking to follow.
Sale & Purchase Agreement: Getting it right and staying safe
Monday 26 March
Gain a deeper understanding of the agreement and your role in helping clients and customers make better decisions. Presented by Graham Crews and worth 2.5 non-verifiable hours.
Queenstown Verifiable Training Seminar
Wednesday 21 & Thursday 22 March
Registration deadline extended until Wednesday 14 March so don’t miss out.
Auckland Central Verifiable Training Seminar
Wednesday 4 & Thursday 5 April
Due to demand, an additional Auckland Central session has been added. Registrations close 26 March, so register now.
2018 Verifiable Education Videos are now available online.
Free PropertySmarts Webinar - available on the Education Portal, later today
Keep up with the latest non-verifiable courses being updated here.
| Region | Dates | Location | |
|---|---|---|---|
| March | |||
| Queenstown | 21 - 22 | Mercure Queenstown | Book Now |
| April | |||
| Auckland Central | 4 - 5 | REINZ Centre of Excellence - Grafton | Book Now |
| Dunedin | 11 - 12 | The Dunedin Centre | Book Now |
| Gisborne | 11 - 12 | Emerald Hotel | Book Now |
| May | |||
| Thames | 2 - 3 | War Memorial Civic Centre | Book Now |
| Whangarei | 9 - 10 | Toll Stadium | Book Now |
| New Plymouth | 16 - 17 | Novotel | Book Now |
| Hamilton | 23 - 24 | Hamilton Working Mans Club | Book Now |
| Invercargill | 23 - 24 | Ascot Park Hotel | Book Now |
Upcoming REINZ Regional Meetings
This is your chance to hear Bindi Norwell speak about what’s happening at REINZ and your region. Also join Dame Rosanne Meo in her final year as Chair.
Ashuburton Regional Meeting
Friday 23rd of March
10am – 12pm
Download the poster
Christchurch Regional Meeting
Friday 23rd March
3pm – 5pm
Download the poster
| March | |||
| RPM Sector Breakfast | 6 March | 7.30am – 10am | Wellington |
| Ashburton Regional Meeting | 23 March | 10am – 12pm | Hotel Asburton, Ashburton |
| Christchurch Regional Meeting | 23 March | 2pm – 4pm | The Tannery, Christchurch |
| April | |||
| Gisborne Regional Meeting | 6 April | 4pm – 6pm | Emerald Hotel, Gisborne |
| C&I Sector Breakfast | 10 April | 7.30am – 10am | Hotel Pullman, Auckland |
| May | |||
| Superstars Breakfast | 1 May | 7.30am– 10am | Grand Millennium, Auckland |
| June | |||
| NZ Auctioneering Championships Draw | 17 June | 5.30pm – 7.30pm | REINZ, Auckland |
| NZ Auctioneering Championships Heats | 18 June | 10am – 5pm | REINZ, Auckland |
| NZ Auctioneering Championships Finals | 19 June | 10am – 6pm | REINZ, Auckland |
| Manawatu & Wanganui Regional Meeting | 20 June | 4pm – 6pm | Manawatu Golf Club, Palmerston North |
Reduction of fixed term tenancy and letting fee refund declined for tenant
Facts: The Tenant applied for tenancy with the local Council. No properties were available from the Council at that time, but the Tenant kept their application live with the Council. In the meantime, they entered into a fixed term tenancy with the Landlord in this case.
The Council later offered a tenancy and the Tenant moved into those premises. The Tenant applied to the Tribunal for a reduction of the fixed term tenancy, on the basis that otherwise they would be paying rent for two properties.
Amongst a number of other complaints, which included a claim that certain appliances did not work for four weeks, the Tenant also claimed for a refund of the letting fee, on the basis that the Landlord’s representative did not do a proper job of ensuring the premises were in order. Mention was made of the problematic appliances
Decision: The Tribunal awarded the Tenant compensation for the issues with the appliances. The Tenant’s other claims failed.
The Tribunal reiterated that under section 66 of the Residential Tenancies Act, it can only reduce a fixed term tenancy if, because of an unforeseen change in the Tenant’s circumstances, the severe hardship that the Tenant would suffer if the term of the tenancy was not reduced would be greater than the hardship suffered by the Landlord if the term was reduced.
The Tribunal considered it was difficult to see how the Tenant having to pay two payments of rent in the circumstances are “unforeseeable”. The Tenant must have known that by keeping their Council application live and then entering into a second tenancy with the Council, that it would be a possibility for them to be liable for two payments of rent.
The Tribunal did not consider there was any ability in law to order the letting fee be refunded to the Tenant. If there are defects with the property, the Tenant can pursue the Landlord for compensation in respect of the defects, as was what happened in this case.
Costs awarded against tenant who did not leave premises in clean and tidy order
Facts: At the conclusion of the tenancy, the question was whether the Tenant left the premises in a reasonably clean and tidy condition. They left rubbish behind and there were carpet stains at the end of the tenancy.
There was also damage to the walls in the hallway and bedroom. The Tribunal had to consider whether that damage was intentional, to assess whether the Tenant is liable to repair that damage.
Decision: The Tribunal was satisfied that the Tenant did not leave the premises in a reasonably clean and tidy order, as is required by section 40 of the Residential Tenancies Act. It was also satisfied that although there were pre-existing carpet stains at the property, when the tenancy ended the carpet had additional stains. Costs were awarded against the Tenant for carpet cleaning, rubbish removal and garden work.
The Tribunal could not be satisfied that the damage to the walls was intentional, on the evidence available. Due to the Osaki decision, if the Landlord is insured against that damage and the damage was not caused intentionally, then the Landlord cannot hold the Tenant liable for that damage. The Landlord’s application in respect of this damage is dismissed.
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.
Easter Trading Hours
Real estate agencies are not covered under the Shop Trading Hours Act 1990 and hence are not subject to the restricted trading hours during the Easter break and ANZAC Day. Although the legal position allows it, we ask our members to bear in mind the special nature of these days when deciding whether to conduct open homes and auctions, e.g. after 1pm may be a more appropriate choice.
Remember that the following days are not “working days” under the Sale and Purchase Agreement for the purposes of calculating condition and settlement dates:
- Good Friday, Friday 30 March 2018
- Easter Monday, Monday 2 April 2018
- ANZAC Day, Wednesday 25 April 2018
Please email any advisory or compliance questions to Sonia Ng, Lawyer, REINZ Advisory Services, and we may feature your question and our response here. This column 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.
Licensee did not misrepresent off-the-plan property
Facts: The complaint relates to a property which was purchased “off-the-plan”.
The Complainant claimed that the Licensee mispresented the property, as the completed property differed from the advertised concept plans because a window was missing.
The Complainant also referred often to clause 24 in the Sale and Purchase Agreement, which stated that on settlement, the vendor shall transfer all manufacturer’s warranties of any material or installation in the dwelling and provide a builder’s warranty for 7 years. The Complainant said the Licensee breached the Professional Code of Conduct and Client Care Rules because she did not provide all manuals as required by clause 24.
Decision: The CAC decided to take no further action on the complaint.
It was clear to the CAC that the Licensee used plans and concept drawings supplied by the vendor and that these plans were more for showing the layout of each unit rather than detailed plans which would be submitted to the local Council. The Licensee also made it clear in the advertising material that it was the purchaser’s responsibility to satisfy themselves of the accuracy of such material. Where the window was not installed as advertised, the vendor/builder had paid monetary compensation for the error.
The CAC also agreed that clause 24 of the Agreement placed responsibility on the vendor and as such, the Licensee could not be expected to be responsible for ensuring all manuals and chattels are provided on completion of the property. The Complainant correctly brought these matters to the Licensee’s attention, so that the Licensee can convey them to the vendor to rectify. However, the Complainant could not hold the Licensee responsible for the remedial costs that he has incurred. The complainant should pursue those remedial costs from the vendor.
Selling properties “off-the-plan” can be a complex and tricky exercise because the Sale and Purchase Agreement often gives the vendor flexibility in altering the materials or layout of the final property. It is important that you understand what representations you can make about the property and highlight to purchasers that:
- The final completed property may differ from the advertised plans and drawings;
- They need to take legal advice to understand (amongst other matters) the extent of the vendor’s ability to make alterations to the plans.
Last year REINZ recorded a webinar on off-the-plan agreements, which can be accessed here.
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.
Enhanced Statistics Platform Training
Further training on the REINZ Enhanced Statistics platform is now available in the form of a User Guide, and a number of short tutorial videos, which have been added to the ‘Help and Guides’ tab, located on the Enhanced Statistics landing page.
A webinar will be available on the Education Portal from next week, which will cover how the new system works. This webinar will also count towards your non-verifiable education.
Keep an eye on this newsletter for further training.
Real Estate Publication - Go Digital
The Autumn edition of the Real Estate Publication will be arriving with you over the coming days.
If you want to help us help the environment, opt for a digital version of the magazine by emailing "OPT DIGITAL" to info@reinz.co.nz
Number of years to save a deposit for a lower quartile priced house in Auckland
We all know saving for a deposit in Auckland is hard, but this latest research from REINZ proves that the amount of time people need to save for a deposit for a house is staggering . Read the full report 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.
