Residential Tenancies (Healthy Homes Standards) Regulations 2019 signed off
On Monday 13 May 2019, it was announced by the Deputy Prime Minister that the Residential Tenancies (Healthy Homes Standards) Regulations 2019 had been signed off. The standards outline the minimum requirements for heating, insulation, ventilation, moisture and drainage and draught stopping in rental properties and will become law from 1 July 2019. The final Healthy Homes Standards will be released on Thursday, 16 May 2019.
Since the announcement, further clarification has been provided in that from 1 July 2020, landlords will be required to provide additional details in their new or renewed tenancy agreements on how their property meets the standards. This will enable tenants and landlords to be aware of the standards before compliance is required from 1 July 2021.
A quick recap
Timelines
- 1 July 2021: Private landlords will need to ensure that their rental properties comply with the standards within 90 days of any new or renewed tenancy from this date
- 1 July 2021: All boarding houses must comply with the standards from this date
- 1 July 2023: All Housing New Zealand houses and registered Community Housing Provider’s houses must comply with the standards from this date
- 1 July 2024: All rental homes must comply with the standards by this date.
Standards
- Rental homes will be required to have a heater that can heat the main living area to 18˚C
- Rental homes will be required to have ceiling and underfloor insulation that either meets the 2008 Building Code insulation standards, or (for existing insulation) has a minimum thickness of 120 mm
- Kitchens and bathrooms will be required to have extractor fans or rangehoods
- A ground moisture barrier must be installed if a property has an enclosed subfloor (if possible). Landlords will also be required to ensure that there is adequate drainage and guttering, downpipes and drains to prevent water entering the rental property
- Draughts must be blocked if they are making the home harder to heat.
Multiple breaches - GST, multi-offer, disclosure and lending
The complaint in this case concerns a purchase of a residential property.
The complainant (purchaser) claimed that the Licensees (Licensee 1 and Licensee 2) misled her in relation to the treatment of GST. She also claimed that Licensee 1 had disclosed details of a competing offer and that Licensee 1 loaned her money to complete the deposit.
Treatment of GST
The words “plus GST zero rate” were placed next to the purchase price on the Sale and Purchase Agreement (Agreement) at some point after the offer had been drafted by Licensee 2. The Agreement had stated that the vendor was registered for GST however, the purchase price did not record Plus GST (if any) and Schedule 2 of the Agreement was not completed.
The Complaints Assessment Committee (CAC) stated that the terms “plus GST zero rate” had the potential to confuse the complainant, the vendor and the solicitors for the respective parties.
The CAC found that the Licensees 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.
Multi-offer
Licensee 1 informed the complainant that there was another offer on the property. The complainant was not asked to sign a multi-offer acknowledgement form and as a result, the CAC found that the Licensee breached Rule 5.1.
The CAC stated that a multi-offer acknowledgement form was known to assist a prospective purchaser in making an informed decision and portrayed transparency in real estate transactions.
Disclosure of competing offer details
Licensee 1 had disclosed the competing offer price and settlement date to the complainant which essentially, compromised the fairness of the situation. By disclosing this information, the complainant was given an upper hand and it also benefitted the Licensee because the competing offer was from another licensee which would have meant that she would need to share the commission.
Loans
Licensee 1 lent the complainant $20,000 to enable the complainant to complete the deposit under the Agreement. Licensee 1 had obtained the vendor’s and branch manager’s consent prior to lending. The CAC stated that lending money created the potential for a purchaser to be placed under undue pressure to proceed with the transaction or mislead the vendor as to the purchaser’s financial means.
The CAC accordingly found, that the conduct of the Licensee was likely to bring the industry into disrepute and therefore, breached Rule 6.3.
Finding
A finding on unsatisfactory conduct was made.
You can find the decision here.
Tips:
1. Agents must provide certainty in their treatment of GST
2. Agents must provide mutli-offer acknowledgement forms when a multi-offer process commences
3. Agents must not disclose key terms of a competing offer to a purchaser
4. Agents must not lend money to any party of the transaction.
Verifiable Training
Hamilton Verifiable Training
Wednesday 29 & Thursday 23 May
Registration deadline Thursday 9 May - a $50 per person late fee will apply after this date.
Taupo Verifiable Training
Wednesday 5 & Thursday 6 May
Registration deadline Thursday 30 May - 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.
Tom Panos - Wellington - Modern Agent 2020 - LAST CHANCE!
Friday 17 May
This workshop will cover how to create a repeatable scalable business; using video and social media to 2x your business; creating urgency in a non-urgent market and more!
Book in now!
Auctioneering Rising Stars Workshop
Monday 27 May
Mark Sumich Chief Judge says "if you want to enter and potentially win this years' Colin Brown Memorial (for best Rising Star) at the REINZ National Auctioneering Champs, it would be prudent to come to the 1-day refresher course in Auckland on the 27th of May - this will hone the skills you already have into a potentially winning performance in June."
Book in now!
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| May | |||
| Hamilton | 29 - 30 | Workingmen's Club | Book Now |
| June | |||
| Taupo | 5 - 6 | Suncourt Hotel & Conference Centre | Book Now |
| Invercargill | 5 - 6 | Ascot Park Hotel | Book Now |
| 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 |
Regional Events
Taupo Regional Meeting
Wednesday 5 June, 4:00pm - 5:30pm
Join REINZ Chief Legal Officer Lisa Gerrard and Wendy Alexander as we bring you the 2019 Taupo regional update held at Suncourt Hotel & Conference Centre. Drinks and Nibbles will be supplied - registrations required for catering and CPD purposes. Verifiable hours = 0.75
YPIRE Regional Meetups
YPIRE Wellington: Success your way
Tuesday 11 June, 5:30pm - 7:30pm, The Arborist Rooftop Bar and Eatery
Our special guests are: Ben Stevens (Ray White Central), Jess Platt (Tommys Central), Rupert Kemey's (Kemeys Brothers Lower Hutt) & Sam McIntyre (Tall Poppy Real Estate).
Join us as our panel discusses the different ways to be success, and what it means to each individual.
For more information, please contact events@reinz.co.nz
YPIRE Auckland: Becoming your brand
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.
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!
Grab your earlybird tickets before 31 May for the best pricing!
For all REINZ Events, click here.
| June | |||
| Taupo Regional Meeting | 5 June | 4.00pm - 5.30pm | Suncourt Hotel & Conference Centre |
| YPIRE Wellington Meetup | 11 June | 5.30pm - 7.30pm | The Arborist Rooftop Bar & Eatery |
| 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 |
| Septmber | |||
| Inspire | Motivate | Connect Conference | 18 September | 10am - 7pm | Shed 10, Auckland |
Get notified with FlexiSign
With FlexiSign, you receive email notifications when changes are made or when someone is reviewing the agreement, to help you remain at the forefront of where the offer is at and action the next steps quickly.
- Keep track of when you’ve sent the offer
- Receive an email when your purchaser or vendor has logged into FlexiSign
- Receive another email notification when one of the parties has approved the agreement.
Monthly Property Report
The Monthly Property Report has shown that median house prices across New Zealand increased by 6.4% in April to a record equal $585,000, up from $550,000 in April 2018.
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.
