Letting fee ban now in effect
As of yesterday, 12 December, letting agents and property management companies are no longer allowed to charge a letting fee to tenants for their services.
Read the full article here
For more information on the ban, visit MBIE.
REINZ Office Christmas dates
The REINZ Head office will be closing from Friday 21 December 2018 and will re-open on Monday 7 January 2019.
Anti-Money Laundering Update
As a result of REINZ’s advocacy in relation to this issue, REINZ is pleased to confirm that The Department of Internal Affairs Real Estate Guideline has now been updated to reflect the change in position on the capture of property management activities.
The property management section on page 15 has been updated as below:
Property managers and property management services
Property management activities (as defined in the new Regulation 21B of the AML/CFT (Definitions) Regulations) are excluded from capture under the AML/CFT Act (except for some commercial property management activities*).
This means that a real estate agent or other person conducting property management activities will not have obligations under the AML/CFT Act in relation to those activities, even though they may involve managing client funds. Real estate agents who carry out property management activities alongside real estate agency work will be subject to the AML/CFT Act only in relation to their real estate agency work.
* The exclusion does not cover “acting, or offering to act, for reward in respect of the negotiation, grant approval, or assignment of a tenancy agreement for commercial premises (whether described as a lease, tenancy agreement, right to occupy, or otherwise)”. Anyone engaging in these activities has full obligations under the AML/CFT Act in relation to these activities.
We continue to liaise with the DIA on issues in relation to the timing of CDD and the requirements to conduct CDD on purchasers when deposits are refunded.
Case Update: High Court orders vacant possession of property
Facts: The Plaintiff owned a Property occupied by the Defendants. The Plaintiff sought an order for possession of the Property. The nature of the occupancy was disputed; the arrangement was informal and unsupported by any written contract. The Defendants moved into the Property in 2001 but they had previously occupied other properties owned by the Plaintiff. The Defendants paid rent and, from 2005 onwards, rates. The disputed occupancy centred on a payment of $30,000 by one of the Defendants to the Plaintiff around 1988. Initially, interest on the $30,000 subsidised the Defendants’ rent. Over time, the market rent increased at a rate higher than the interest and resulted in the Defendants paying far below market rent. Given this difference, the Plaintiff considered that the principal sum had been slowly written off over time. After being unable to negotiate a new arrangement, the Plaintiff issued a notice to vacate. The Defendants failed to vacate the Property so the Plaintiff issued a trespass notice. Still, the Defendants failed to leave the Property. The Defendants claimed that the Plaintiff had explicitly or impliedly granted them a life interest in the Property.
Decision: Associate Judge Sargisson explained that a firmly established legal principle was that a registered proprietor is entitled to maintain or recover possession of their property against other persons unless those persons can demonstrate a legal interest in that property. Here, the Defendants’ life interest must have been predicated on an enforceable contract. The terms of that alleged contract were too uncertain; there was no evidence about the expected duration of the occupancy. The Judge considered that the arrangement most likely amounted to a license to occupy the Property or a tenancy of uncertain duration. The Plaintiff’s notice to vacate the property and subsequent trespass notice were sufficient to terminate that license or tenancy. Therefore, the Plaintiff was entitled to an order for possession.
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.
Work with REINZ - Head of Property Management
REINZ is looking for an experienced property manager for the newly established role of Head of Property Management.
Location: Auckland
Applications are sought from suitably experienced property managers for the role of Head of Property Management at REINZ. This newly established position offers an exciting opportunity to join REINZ and take a lead role in further developing REINZ’s offering for the property management industry. The Head of Property Management will work across all teams within REINZ, providing specialist residential property management advice and expertise. Acting as the liaison between the property management industry and REINZ, the Head of Property Management will assist REINZ to execute and deliver its strategic objectives for property management. As this is a senior role, we seek applications from candidates with:
- Proven, relevant residential property management experience;
- A thorough understanding of relevant legislation;
- Experience developing and delivering compliance and training material;
- Excellent communication skills, both written and verbal;
- Business development experience;
- Operations and/or project management experience.
Please forward applications (including a CV and covering letter) to Lisa Gerrard.
For enquiries, please contact Lisa Gerrard, CLO/ GM Membership and Advocacy, 021975630.
REINZ and Real-iQ deliver the NZ Certificate in Residential Property Management
Lift your professionalism and standards and prepare yourself now for potential industry regulation.
Click here for more information.
Case Update: Licensee sentenced for imitating signatures
Facts: The Licensee signed as attorney for either a client or a client’s company on several documents relating to a real estate transaction. The Licensee either signed using an imitation of the client’s signature or he used his own signature. He did not sign the signature in a way that indicated the existence of a power of attorney. The circumstances behind the use of false signatures were suspicious and likely related to an attempt to assist in mortgage fraud. The READT found that the Licensee’s behaviour was highly irregular and improper, and that it amounted to disgraceful conduct.
Decision: The READT noted several aggravating factors in this case: first, the Licensee failed to disclose the fact that he was an attorney when he signed documents on six separate occasions; secondly, the deliberate act of using the client’s signature on three agreements amounted to a deliberately misleading act; and thirdly, the Licensee had a previous finding of misconduct amounting to disgraceful conduct in similar circumstances. On that occasion, he was suspended for 12 months. The READT inferred that the Licensee did not learn from this prior suspension; this suggested that a substantial further deterrent was required. The maximum available suspension was 2 years. In the circumstances, the READT decided that a fine of $7,500 and a suspension of 6 months was appropriate.
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.
'Working days' over Christmas and the New Year
For the purposes of the REINZ/ADLS Agreement for Sale and Purchase of Real Estate, ‘working days’ over the Christmas break do not include any day beginning from Monday 24 December and ending on Friday 4 January (inclusive). The first working day is Monday 7 January.
The exception is the calculation of the 15 working days approval period for the LIM report under clause 10.2(2) of the Agreement. In that case, ‘working days’ does not include any day beginning from 24 December and ending on 15 January (inclusive).
Verifiable Training
Don't forget to complete your 2018 verifiable training by 31 December 2018.
Book your online verifiable training here
2019 Verifiable Training dates now available
Check for your regions training here.
REINZ welcomes back Tom Panos
New Year, New You! Auckland - Thursday 21 February
Note: Tom will also be presenting in Wellington & Christchurch in 2019 - Info to come
Face-to-face training
eForms Training - Auckland
Wednesday 19 December, 10am - 11am
FlexiSign Training
Wednesday 19 December, 11.15am - 12.15pm
Webinar Training
Statistics over Christmas
REINZ will be closing off the December return at midday on Friday 11 January 2019. Your attention to getting that data to us prior to that date would be much appreciated.
If you are closing over the festive break and not reopening until after 11 January 2019, we would appreciate it if you could load your sales data before your office closes.
Thank you for your consideration.
Shared ownership scheme launched
This week BNZ announced a shared ownership scheme to help those unable to draw upon the help of 'the bank of mum and dad'.
Bindi Norwell, REINZ Chief Executive, says: "Shared equity models have proven to be successful overseas and are a good way to help first time buyers to get onto the market. REINZ is supportive of measures that help Kiwis to get a foot on the property ladder – particularly as home ownership is at its lowest level in 60 years and house prices are continuing to rise around much of the country continuing to put housing affordability out of the reach of many.”
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.
