In The Know
12 June 2019
Click the headings below to read more or visit the Property Management page
REINZ Survey
Thank you to everyone that took part in the REINZ Survey - we had a fantastic response and will be working through all the responses over the coming weeks.
Congratulations to Di Martin of Ray White Napier, the winner of the Nespresso Essenza Mini Breville Pure Black (thanks to our REINZ Member Benefits supplier Noel Leeming). Your Nespresso is on its way!
Major ramifications for failing to treat GST properly
The complaint in this case concerns the purchase of two properties, Lot A and Lot B (the properties). Company 1 purchased the two sections and nominated Company 2 as the purchaser of Lot B. The purchase price on each Agreement for Sale and Purchase (ASP) was $415,000 inclusive of GST (if any). The complainant (purchaser) intended to claim the GST on a zero-rated basis for each sale but later found out through their accountant that this was not possible.
Treatment of GST
Both ASPs stated that the vendor was registered for GST, however, the complainant said that the Licensee did not ascertain whether the purchaser was registered for GST.
The Licensee stated that he had originally drafted the ASP as “plus GST (if any) but the complainant gave him “firm” instructions that he wanted to purchase the properties as inclusive of GST and did not instruct him to deduct GST from the purchase price.
The complainant stated that he assumed the changes to the ASP had been made as requested. The Complainant stated Company 1 and Company 2 paid around $124,000 too much for the Properties as a result.
The Complaints Assessment Committee (CAC) stated that the Licensee was put on notice to clarify the GST concern and should have taken advice and recommended that the complainant seek specialist GST advice when there was uncertainty as to the actual GST position of the purchasing entities.
The CAC found that the Licensee breached Rule 5.1 of the Professional Conduct and Client Care Rules 2012 (the Rules), in that they failed to exercise competence with their treatment of the GST and breached Rule 9.7 by failing to advise the complainant to seek technical advice.
Schedule
The vendor’s GST number was entered into Schedule 2 of the ASP for the properties, the purchasing company was named, and the forms were signed by the respective parties however, the rest of the Schedule had not been completed. The CAC stated that Clause 15.0 of the ASP relates to zero rating for GST. If a vendor is registered for GST and a purchaser is or will be registered for GST by settlement and is intending to use the property for making taxable supplies, GST will be charged on the supply under the ASP at 0%. The terms of the ASP require Schedule 2 to be completed if a vendor has stated on the front page of ASP that they are registered for GST purposes.
The CAC found that the Licensee accordingly, breached Rule 9.9 in that they must not submit an ASP to any person for signature unless all material particulars have been inserted into or attached to the document.
Finding
A finding of unsatisfactory conduct was made.
You can find the decision here.
Tips:
1. Although an agent may not be expected to be a GST expert, the law that applies to GST matters is complex and therefore, the agent is on notice to take extra care in the preparation of an Agreement for Sale and Purchase.
2. Where there is uncertainty in relation to GST, the agent should take advice and also recommend specialist GST advice is sought.
Verifiable Training
Rotorua Verifiable Training - LAST CHANCE!
Wednesday 19 & Thursday 20 June
Registration deadline Thursday 13 June - a $50 per person late fee will apply after this date.
Timaru Verifiable Training - LAST CHANCE!
Wednesday 19 & Thursday 20 June
Registration deadline Thursday 13 June - a $50 per person late fee will apply after this date.
Palmerston North Verifiable Training
Wednesday 3 & Thursday 4 July
Registration deadline Thursday 27 June - a $50 per person late fee will apply after this date.
Check online for a full list of regional training sessions or the newly released online training packages!
Please note: In 2019 the AML Verifiable training topic is mandatory and no exemptions apply.
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| June | |||
| Rotorua | 19 - 20 | Copthorne Rotorua | Book Now |
| Timaru | 19 - 20 | The Grosvenor | Book Now |
| July | |||
| Palmerston North | 3 - 4 | Hotel Coachman | Book Now |
| 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 Regional Meetup
YPIRE Auckland: Becoming your brand - LAST CHANCE!
Thursday 13 June, 4:30pm - 6:30pm, Events on Khyber, Level 2 REINZ, 155 Khyber Pass Road
Our special guests are: Jadyn Dixon, Harcourts Cooper & Co; Genevieve Taylor - Ford, Bayleys Auckland Central and Caleb Paterson, First National Telos Group.
Join us as our panel discusses building and becoming your brand.
For more information, please contact events@reinz.co.nz
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.
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.
Please note: The Taupo Regional Meeting has been cancelled.
| June | |||
| YPIRE Auckland Meetup | 13 June | 4.00pm - 6.30pm | Events on Kyber, REINZ |
| NZ Auctioneering Championships - Draw | 23 June | 5.30pm - 7.30pm | REINZ, Auckland |
| NZ Auctioneering Championships - Heats | 24 June | 10am - 5pm | REINZ, Auckland |
| NZ Auctioneering Championships - Finals | 25 June | 10am - 6pm | REINZ, Auckland |
| August | |||
| Thriving in Changing Times | 2 August | 9am - 7pm | Hilton Hotel Auckland |
| Septmber | |||
| Inspire | Motivate | Connect Conference | 18 September | 10am - 7pm | Shed 10, Auckland |
Access Survey Plans for free in PropertySmarts!
Survey Plans help you get information such as units/titles, covenant areas and easement locations that are not included on the title.
Accessing Survey Plan at no additional cost will save you time and enable you to provide even more information for your buyers and vendors.
- Go to 'Find a Property'
- Select 'Survey Plan' in the 'Searching by' dropdown
- Click on 'Details' and print the survey plan.
Cutting carbon emissions in Auckland
Bindi Norwell, REINZ Chief Executive said: "Internationally, there is evidence that buildings and houses that are more environmentally friendly can contribute economic and social benefits.”
Guidelines withdrawn by Privacy Commissioner
"When the new guidelines were announced a few weeks ago a number of industry bodies, including REINZ, raised concerns around a lack of consultation and some of the discrepancies between the advice issued by the OPC and other Government departments," says Bindi Norwell, REINZ Chief Executive.
"REINZ has a meeting with the OPC in the next week and we look forward to having some extensive discussions around how we can support these guidelines and help ensure that we maintain a balance of respecting people's privacy but still ensuring landlords' interests are looked after."
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.
