Gluckman Report on Methamphetamine
REINZ was surprised by the Gluckman report issued earlier this week on meth, which appears to advocate a safe level of 15mg when the Ministry of Health and ESR scientists just last year recommended a safe level of 1.5mg. The figure in Sir Peter’s report sees a 900% increase in the level that is deemed to be safe.
In its conclusion the report states that: ‘there is currently no evidence…that the levels typically resulting from third hand exposure to methamphetamine …elicit an adverse health effect…the absence of evidence is not evidence of absence of an effect. There is a clear need for more research and a co-ordinated inter-agency effort to build up a robust dataset’. The report does not state that it is safe to live in properties above the 1.5mg level, just that there is no evidence to prove that it is unsafe and that more research is required.
Until further clarification is provided by the Government in relation to the report and the REA issues the industry with detailed guidelines, we suggest members:
- Advise vendors and purchasers of the existence of both the Gluckman report and the NZ Standard. You may wish to provide copies, or links to electronic copies, of both reports.
- Continue to seek your vendor’s permission to disclose the presence of meth regardless of the level. Until we receive guidance from the REA, there is a risk that meth contamination at any level may be considered something that “in law or fairness” ought to be disclosed to purchasers under R6.4.
- If the vendor refuses to allow you to disclose the presence of meth, speak to your branch manager or supervisor as you may need to walk away from the listing under R10.8.
- Record all communication you have with vendors and purchasers around meth in writing.
We have been liaising with the REA on this matter to ensure there is clear guidance for the industry going forward. Yesterday, the REA issued a press release stating:
- prospective buyers who remain worried about methamphetamine contamination should read the report and seek legal advice before signing a sale and purchase agreement.
- agents should read the report and consider its impact on real estate transactions. In some respects, the challenge for the real estate industry remains the same as it has always been. Real estate agents and sellers are required to disclose information that is relevant to a buyer.
The REA says it is preparing more detailed guidance for the industry about the disclosure of methamphetamine contamination. As soon as we have any further guidance we will share this with you so that you have clarity in this matter.
Best wishes Bindi
Last chance to register
Sales Excellence Workshop: Strategies to Increase Listings and Sales.
Thursday 7 June.
John will draw on over 40 years’ experience (including the last 18 months back at the coal face) to provide scripts, dialogues and strategies to increase Listings and Sales in a challenging market. Book here
Verifiable Training
Rotorua Verifiable Training
Wednesday 20 and Thursday 21 June.
Registration deadline Monday 11 June - a $50 per person late fee will apply after this date.
Timaru Verifiable Training
Wednesday 27 and Thursday 28 June.
Registration deadline Monday 18 June - a $50 per person late fee will apply after this date.
Non-Verifiable Training
2018 Compliance Review Workshop: Staying Safe with the REA.
Wednesday 13 June
Come along and discuss some case studies, ask questions and ensure you know what needs to be done to stay safe with the REA. Presented by Graham Crews with special guest: Kevin Lampen-Smith, CEO of the REA. Book here.
Social Media Workshop: Using Facebook and LinkedIn effectively.
Friday 22 June.
This 2-hour practical workshop will show you how to use Facebook and Instagram effectively to reach buyers and sellers in the market and grow your personal brand. Book here
Masterclass for Real Estate Managers - one day workshop.
Thursday 28 June.
This workshop is presented by Bruce Cotterill, a five-time CEO and the creator of ‘The 7 Principles of Profit’. Limited to 10. Check out all the details here.
New Webinars
Anti-Money Laundering
– Live-recording of the presentation that was held at the REINZ Centre of Excellence.
The Marketing Advantage for Residential Sales Vol.3
| Region | Dates | Location | |
|---|---|---|---|
| June | |||
| Taupo | 6 - 7 | Great Lakes Centre | Book Now |
| Rotorua | 20 - 21 | Holiday Inn | Book Now |
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Upcoming REINZ Seminars
North Island Rural Seminar - Tuesday 12 June, 11am – 3pm
On the day before Mystery Creek opens – join us for a half day seminar, filled with knowledge, inspiration and information, tailored specifically to the Rural Sector.
Download the poster
Upcoming REINZ Regional Meeting
Manawatu and Wanganui Regional Meeting
Wednesday 20 June, 4pm – 6pm
Come and join Mayor Grant Smith, Dame Rosanne Meo, Bindi Norwell and Richard Warner from Property Press as they share their insights into what is happening in the region.
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Wellington Regional Meeting
Wednesday 4 July, 5pm – 7pm
Join Dame Rosanne Meo in her final year as Chairman and Mark Coffey, Regional Director to hear Bindi Norwell speak about what’s happening at REINZ and share the latest regional data. Our partner Property Press will share some relevant new research.
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Earlybird 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.
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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.
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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 open from 5 June 2018.
Download the invitation or the 5 Ticket discount REINZ Awards for Excellence or the 10 Ticket discount REINZ Awards for Excellence
| June | |||
| North Island Rural Seminar | 12 June | 11am – 3pm | Hamilton |
| 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 |
| 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 |
| 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 |
Meth – has anything changed?
A meth report was released earlier this week advising that there is no evidence that third hand meth contamination causes harm to health and that meth levels of up to 15mcg/100cm2 may be safe. However, the report goes on to state that “absence of evidence is not evidence of absence” and that more research is required.
MBIE has advised that regulations regarding meth levels, testing and decontamination processes will be made later this year. Until the regulations are in force, or until the Tenancy Tribunal, Real Estate Authority, local Councils, Worksafe NZ and the Ministry of Health provide guidance, REINZ recommends that members adopt a cautious approach and continue to use the NZ Standard level of 1.5mcg/100cm2 as the benchmark.
Landlords and property managers should continue to test for meth before and after tenancies as causation still needs to be established if contamination is found.
It is disappointing that clarity from relevant Government agencies is not yet available but we will keep you informed as and when information comes to hand.
Tenants awarded costs for mould and dampness
Facts: This is a tenant application for compensation and a rent reduction. Three tenants were named on the tenancy agreement but only two of the named tenants supported the application.
A main issue concerned a leak in a bedroom. Water damage extended to the carpet and the landlord had the carpet lifted and folded back on the advice from a carpet cleaning and drying company. The evidence nevertheless was that mould grew on the carpet, walls and ceiling and the walls had water marks.
In addition, there was water damage in another bedroom which the tenant notified to the landlord. The landlord did not attend to it, so the tenant cleaned it with Janola.
One of the tenants claimed his health was severely affected by the mould and produced a medical certificate and statements from family and friends which noted a change in his energy and personality over the period.
Decision: The tenants were awarded costs, but the amount awarded was less than the amount they claimed.
The Tribunal allowed the application to proceed even though not all the tenants supported it, as the Tribunal was prepared to deal with matters such as the condition of the premises as they affect the individual tenants.
The Tribunal accepted one of the tenant suffered some inconvenience from the mould and dampness, and that the landlord did not deal adequately with the issues, but also noted statements from the tenant’s family and friends referred to other stresses and strains which likely affected his health as well. The tenants also had a responsibility to clean and the evidence suggested that cleaning was all that was needed for the mould. Overall, sums were awarded for compensation and rent reduction as adjusted by considering the factors above.
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.Anti-Money Laundering: Lawyers must comply on 1 July and how this affects us
From 1 July 2018, lawyers must comply with Anti-Money Laundering legislation. This means that from 1 July, purchasers of property will need to comply with their lawyer’s Anti-Money Laundering processes. These processes include verifying the purchaser’s identity and address.
For individuals, identity verification will usually involve the purchaser providing a copy of their driver’s license/ passport to their lawyer and a copy of a bank statement or utility bill to confirm their address. However, for trusts and companies the process can be more complex and time consuming. For trusts, the lawyer will usually need to verify the identity of the trustees and beneficiaries (this includes obtaining a copy of the trust deed) and for companies, the lawyer will usually need to verify the identity of the directors and shareholders.
REINZ recommends that you advise purchasers to gather identity verification documents for their lawyers well before the settlement date, to help ensure that the sale goes through smoothly.
Update: GST and Compulsory Zero-rating
GST and compulsory zero-rating complications were again highlighted by a recent Court of Appeal decision (the Ling decision), where the vendor was ordered to pay more than $350,000 to the purchaser for breach of the GST warranty.
In the Ling decision, the vendor had circled “no” as to her GST-registration status on the sale and purchase agreement. The purchase price was recorded on a GST-inclusive basis. After settlement, the IRD declined to issue an input tax refund to the purchaser as it determined that the vendor should have been GST-registered at the relevant time. The IRD therefore backdated the vendor’s GST-registration, which made the transaction zero-rated.
The Court held the vendor breached the GST warranty in the sale and purchase agreement when she indicated that she was not GST-registered. The Court considered the warranty covered not only whether the vendor was in fact GST-registered at the time, but also whether the vendor was liable or deemed to be registered at the time. The vendor was ordered to pay the purchaser the amount of the input tax refund that the purchaser could not claim.
This decision is an alert for licensees that the IRD can retrospectively register a party for GST. Vendors and purchasers should therefore take care and fully understand what they are agreeing to when confirming their GST-status on the agreement. As always, licensees are encouraged to recommend the parties to seek specialist advice before signing any agreement to ensure the correct GST treatment is applied.
Click here for the decision.
Click here for the updated REINZ GST and Compulsory Zero-Rating Guide.
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 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.
