In The Know
10 July 2019
Click the headings below to read more or visit the Property Management page
Rural Statistics Update
Since decommissioning the old legacy statistics site earlier this year, the REINZ team has been collecting feedback from rural agents on how we can make statistics better for our rural members.
Last week we released the first update for rural agents.
- Bareland Filter - This filter allows agents to search for bareland only
- Sale As Is - Not only for rural, this will filter results which are sold "as is" only.
Data Quality
As with all REINZ statistics our data reports and quality is only as good as the information our members provide us. To this end, we encourage all members to take the time to ensure the data submitted is as accurate and full as possible. Particularly in areas where council data is sparse, such as rural, it is very important that REINZ receives information around irrigation type and comments about the farm conditions. You can upload and make changes to your submitted returns as a manager or administrator in the REINZ statistics portal.
What's Next
Over the next several weeks we have more changes to make which have been requested by REINZ members.
1. For the REINZ rural agents we will be releasing a market intelligence graph and table related to milk solids and productivity per hectare.
2. We are adding a feature to default the category filters when you log in to the site. If you only sell Lifestyle you can default to this setting.
3. The largest improvement is making council data available for agencies which have, through a secondary service with REINZ, purchased it. Whether it is through PropertySmarts access or because your head office has bought the data, council data will be made available in the statistics site. Some of the information available will be construction type, zoning, legal descriptions, valuation information and building ages.
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
Case Update: Scrim or no scrim
The purchasers in this case complained to the Real Estate Authority about a Licensee’s conduct in respect of a sale.
The complaint was that the Licensee misled the purchasers by not informing them that the house contained scrim (natural fibre material used in wall construction), that the third bedroom was not compliant with the Housing Improvement Regulations 1947 and stating that the cooktop was an induction unit when it was in fact, ceramic.
Scrim
Soon after purchasing the property, the purchasers thought they could see scrim in the walls and engaged a builder to inspect the walls, who then confirmed that scrim was in fact in 50% of the wall linings. This prompted the complaint about scrim.
Before the purchase, the purchasers obtained a pre-purchase building and electrical inspection report as a condition of the purchase, which indicated that scrim was behind the switchboard. The purchasers then contacted the Licensee via email and asked “are the owners aware of any scrim in the house? The Licensee responded 10 minutes later stating, “there is no scrim in the house”.
The CAC noted that the purchasers did not seek to inform or correct the Licensee that the electrician had found scrim behind the switchboard. Nonetheless, the CAC stated that the Licensee’s statement without any clarification or qualification was incorrect and misleading.
The CAC found that the Licensee’s statement breached Rule 5.1 (skill care and competence) and Rule 6.4 (must not mislead) of the Code of Conduct 2012. A finding of unsatisfactory conduct was made however, the CAC noted that it was a minor breach given that the purchasers did not inform the Licensee of the scrim located behind the switchboard and no order was made.
Induction Cooktop
The Agreement for Sale and Purchase stated ‘induction cooktop’ in the chattels list when the cooktop was ceramic. The Licensee and vendor provided a new induction unit at their expense therefore, the CAC took no action.
Bedroom Size
The purchasers claimed that the 3rd bedroom should not have been represented to them as a bedroom as the size did not meet the minimum requirements stipulated under the Housing Improvement Regulations 1947.
The Licensee stated that the LIM report described the room as a bedroom as did the building plans. The CAC acknowledged this and noted that the size of the room could have met the requirement for a person under the age of 10 and that the Regulations were not clear.
The CAC stated that the purchasers had the opportunity to make their own determination as to the size and suitability of the third bedroom for use as a bedroom and that the Licensee did not mislead the purchasers in relation to this issue.
Tip:
- A key lesson from this case is that, agents should take extra care when responding to questions put to them by purchasers and should ensure that their answers do not have the ability to mislead the purchaser.
Agents should not hesitate to seek clarification on questions put to them either.
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.
Overseas investors fail to apply for OIO consent and incur hefty fines
A recent case on OIO Consent serves as an important reminder that if overseas persons fail to apply for consent when they are supposed to, they will be fined a significant amount.
This case involved two overseas investors who purchased two properties in 2012 and 2014 respectively. Both properties were rural land that exceeded the particular area threshold, which was five hectares. This meant that the properties were considered sensitive land (non-residential) and consent was required.
As a result of the illegal investments, the High Court imposed a fine of $2.95 million and the investors were ordered to sell the properties, pay the penalties, legal costs and any gain made on the investment.
The investors applied for retrospective consent to legalise the investments however, the OIO denied this application as the investments did not provide enough benefits under the Benefit to New Zealand criteria in relation to the test for rural land.
To access further information on this case, click here.
Assigning Insurance Claims – New Decision Released
Following the recent Supreme Court decision of Ruiren Xu and Diamantina Trust Limited vs IAG New Zealand Limited, we remind members of our Selling Earthquake Affected Properties Information Sheet, which states that many private insurers require vendors to obtain the insurer’s written consent before a private insurance claim can be assigned. It is advisable for the vendor to contact their private insurer and solicitor to discuss assignment, before an Agreement for Sale and Purchase is entered into.
To access the Selling Earthquake Affected Properties Information Sheet, click here.
Verifiable Training
Nelson Verifiable Training
Wednesday 24 & Thursday 25 July
Registration deadline Thursday 18 July - a $50 per person late fee will apply after this date.
Kerikeri Verifiable Training
Wednesday 7 & Thursday 8 August
Registration deadline Thursday 1 August - a $50 per person late fee will apply after this date.
AML Roadshow 3
REINZ is delivering AML sessions in 15 locations across New Zealand this July and August. These sessions have different content from previous roadshows and they are not-to-be missed! Highly-practical with expert presenters, these sessions are also an excellent opportunity to bring all your questions.
Find a session in your area and book now.
Check out the Roadshow poster.
Residential Property Management Qualification - Second Intake
Due to high demand, there will be a second intake starting 9 September.
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| July | |||
| Nelson | 24 - 25 | Trailways Hotel | Book Now |
| August | |||
| Kerikeri | 7 - 8 | Kingston House | Book Now |
| 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 |
YPIRE Christchurch - Future Impacts - LAST CHANCE!
Thursday 11 July | Botanic, The Terrace
Join us as our panel discusses the ins and outs of the future impacts on the real estate industry.
It's important that as a professional working in real estate industry, you know not only how the industry functions currently, but also how it is going to evolve over the coming years. There are many factors that impact the way we run our business, so we brought in the pros to help us figure out what we should expect.
Get your tickets now.
Superstars Breakfast
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; and Rohan Thompson from Ray White Mt Roskill.
Find out more details, or book now here.
2019 RPM Conference - Thriving in Changing Times
Friday 2 August, Hilton Hotel Auckland
This not-to-be missed Property Management Conference is hosted by Simon McKinney and filled with a great line-up of speakers such as Lisa O’Neill, Dr Annette Beautrais, Steve Watson, Lisa Gerrard and Sheree Nicholas.
Breakout sessions will be available for Property Managers and Business Owners.
Find the full agenda here
Registration includes Cocktail Networking Drinks where the winner of the ‘2019 Recognition of Contribution to the Property Management Industry’ will be announced.
2019 REINZ Awards for Excellence
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.
Enter the Awards 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 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.
| July | |||
| YPIRE - Future Impacts | 11 July | 5.30pm - 7.30pm | Botanic, The Terrace |
| August | |||
| Thriving in Changing Times | 2 August | 9am - 7pm | Hilton Hotel Auckland |
| 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 |
Interactive Webinar Training
Register for an interactive webinar training with one of our digital product specialists, whenever you need a refresh or want to learn how to use one of the following REINZ digital products:
- PropertySmarts
- eForms
- Learn how to use the Statistics Platform
- FlexiSign Demo
REINZ HPI: Southland leads the charge with strongest property growth in NZ in June
Bindi Norwell, REINZ Chief Executive said: "The Southland region was clearly the shining star in June with the strongest annual growth rate seen across the country – it was also the second region in the country (behind Manawatu/Wanganui) to go over the ‘3,000 mark’ in the overall index."
Read the article here | Read the full report here.
End of tenancy cleaning - what's expected
Bindi Norwell, REINZ Chief Executive said: "Where the confusion arises is the difference between what a landlord or property manager determines to be reasonable and what a tenant believes is reasonable – and these two views naturally tend to differ in around 90% of cases."
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.
