In The Know
14 August 2019
Click the headings below to read more or visit the Property Management page
REINZ Property Management Roadshow
REINZ is excited to be offering workshops for property managers in Auckland, Hamilton and Christchurch in August & September.
These workshops will cover key aspects for the RTA (case study analysis, breaches of the RTA and more!) along with a great session on Dog Workplace Safety. Delivered by REINZ Education Director, REINZ Head of Property Management and Dog Workplace Safety Ltd.
Case Update: Agent allowed potential purchasers to view property unattended on multiple occasions
The complainants in this case claimed that that the Licensee failed to follow their express instructions on how to market the property and failed to follow instructions in relation to access to the property by potential purchasers. They claimed he wrongly described the boundaries and misled the complainants as to claiming commission on a private sale as well.
Issue 1
The complainants claimed that they had instructed the Licensee to market the multiple business opportunities that the property presented. The Complaints Assessment Committee (CAC) were satisfied that the Licensee understood this instruction as he had responded to the complainants by stating that he would “advertise the property as the potential to operate as a café/lifestyle".
The CAC found that based on the evidence, the Licensee did not follow through on the instructions. One advertisement stated, “oozes old world charm” and is an “ideal spot to stop for coffee or cake”.
The CAC found that the advertising did not refer to the physical assets/features of the property, nor make mention of the existing shop/café, garage, workspace and animal enclosures. It was found that the language in the advertisement did not promote the property as a whole for the business opportunities it presented.
Rules 5.1 (exercise skill, care, competence and diligence) and 9.1 (act in best interest of client) of the Code of Conduct Rules 2012 were breached.
Issue 2
The complainants and the Licensee agreed that the keys to the property would be in an agreed location as this would have made it easier for the Licensee to show potential purchasers around.
The Licensee admitted that he allowed a purchaser to go through the property unattended once. However, the purchaser claimed she went through the property on two occasions unattended but with the Licensee’s permission. A neighbour also contradicted the Licensee’s evidence and saw two different groups of people on the property at different times (neither of whom he thought were the purchaser).
The CAC found that the Licensee allowed the purchaser and potential purchasers to access the property unaccompanied by disclosing the location of the keys. The Licensee breached Rule 5.1 and 9.5 (ensure security of land).
A finding of unsatisfactory conduct was made.
Issue 3 and 4
No finding was found against the Licensee pertaining to the boundaries or commission on a private sale
Key Tips:
- A key lesson from this case is that agents should check if their clients are happy with their marketing content before placing them on various platforms.
- Another key lesson from this case is that agents should never allow potential purchasers to enter their client’s property unattended or disclose where any keys are to access the property. To do so, would be a clear breach of trust.
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.
Are you keeping on top of your AML/CFT obligations?
On 7 August, the Police executed search warrants at 17 residential and commercial properties throughout Auckland, Canterbury and Southland. The purpose behind these search warrants was to target the supply and distribution of methamphetamine.
The Police arrested 10 people and seized over $1 million in cash and assets following the major operation.
Those arrested are now facing multiple charges in relation to the supply of methamphetamine, possession for supply of the drug, money laundering and involvement in an organised crime group.
Money is the one of prime reasons for engaging in criminal activity such as the above. Criminals who participate in money-laundering practices disguise the illegal origins of their wealth with the purpose of avoiding suspicion from the Police and leaving a trail of incriminating evidence.
One way of disguising the origins is through the purchase of real estate hence, the AML/CFT obligations on real estate agents. The aim of these obligations is to deter criminals from using your services and detecting when they do.
The recent news serves as a reminder that if you notice things that are potential signs of money laundering, then this needs to be reported to the Police Financial Intelligence Unit (FIU).
For more information on the reporting of suspicious activities, click here.
Verifiable Training
Napier Verifiable Training - LAST CHANCE
Wednesday 21 & Thursday 22 August
Registration deadline Thursday 15 August - a $50 per person late fee will apply after this date.
Tauranga Verifiable Training
Wednesday 4 & Thursday 5 September
Registration deadline Thursday 29 August - a $50 per person late fee will apply after this date.
Property Management Roadshow
Check out the poster here | Find a session near you and book here
Residential Property Management Qualification
Intake Two starting 9 September 2019
2019 Special available now
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| August | |||
| 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 |
2019 REINZ Awards for Excellence Gala Dinner - LAST CHANCE!
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.
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 Josh Tesolin, 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.
REINZ Superstars Breakfast
The 2019 REINZ Superstars Breakfast was held on Thursday 8 August at GridAKL with panelists discussing their strategies for success in a challenging market.
| August | |||
| Awards for Excellence Gala Dinner | 27 August | 6pm - 10pm | Cordis Auckland |
| Septmber | |||
| Inspire | Motivate | Connect Conference | 18 September | 10am - 7pm | Shed 10, Auckland |
Location Profiler - Property Management Portal
For the times when you need quick access to the basics
You may be on the phone to a prospective landlord or on your way to meet a potential renter. The Location Profiler gives you access to information on an area of your choice including; the median rental price across property types, School Zones and Census Statistics in 3 simple steps.
1. Log in to the Statistics Portal
2. Click Location Profiler on the landing page
3. Enter the area and scroll down
AML360 - New REINZ Member Benefits supplier
Mention you are a REINZ member at the link below to receive a 15% discount on the online Business Risk Assessment and AML Compliance Health Check.
Highest number of properties sold across NZ in month of July for 3 years
REINZ Chief Executive Bindi Norwell said "this is the first time in eight months that we’ve seen the number of properties sold around the country increase on an annual basis suggesting that we’re starting to see some early signs of growth."
This week on the blog: Turning complaints into compliments
Complaints can sometimes be hard to hear, but often they are a blessing in disguise. Word of mouth has always been an important source of referrals, but now social media and online rating systems mean that your customers have an immediate channel to communicate what they think at any time of the day or night.
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.
