You may be aware that this week the Real Estate Authority has rebranded and also launched its new website www.settled.govt.nz. I attended the launch in Wellington along with a number of our members from around the country.
Today I’ve had a conference call with REA Chief Executive, Kevin Lampen-Smith to congratulate him and his team on the launch and express our support for their support of consumers when buying or selling a property.
However, I expressed some concerns around some of the content on the website and references to real estate agents. I was impressed by the positive response from Kevin stating that the REA is open and committed to receiving feedback on the website. I encourage you to support REINZ and the wider industry to share any feedback you have with the REA by sending it to info@settled.govt.nz. Kevin commented that the more specific feedback is, the easier it is to address.
Best regards
Bindi
2018 Verifiable Education
The Christchurch Verifiable Training Seminar is scheduled for 7 - 8 March with registrations closing on 26 February at 5:00pm. Any late registrations will incur a fee of $50 +gst per person.
Due to high demand, an additional Auckland Verifiable Training Seminar has been scheduled for Auckland Central on 4 – 5 April at the REINZ Centre of Excellence.
Check out our Education page for all our nationwide sessions happening this year.
Please note: numbers are limited in some locations, so please make sure you secure your spot.
| Region | Dates | Location | |
|---|---|---|---|
| March | |||
| Christchurch | 7 - 8 | The Atrium | Book Now |
| Queenstown | 21 - 22 | Mercure Queenstown | Book Now |
| April | |||
| Auckland Central | 4 - 5 | REINZ Centre of Excellence - Grafton | Book Now |
| Dunedin | 11 - 12 | The Dunedin Centre | Book Now |
| Gisborne | 11 - 12 | Emerald Hotel | Book Now |
| May | |||
| Thames | 2 - 3 | War Memorial Civic Centre | Book Now |
| Whangarei | 9 - 10 | Toll Stadium | Book Now |
| New Plymouth | 16 - 17 | Novotel | Book Now |
| Hamilton | 23 - 24 | Hamilton Working Mans Club | Book Now |
| Invercargill | 23 - 24 | Ascot Park Hotel | Book Now |
Tickets for 2018 REINZ 15th Annual Fishing Tournament are now on sale!
Friday 2 March 2018, weigh-in from 3pm - 4pm at Auckland Sailing Club.
We have over $1,000 of amazing prizes from Topcatch and $2,250 worth of cash prizes up for grabs. - check out the poster.
If you want to join in on the fun, but don't have a boat, get in quick and secure your spot on on the Property Press charter boat - available now!
Get your tickets here!
| March | |||
| REINZ Fishing Tournament | 2 March | 8am – 5pm | Auckland |
| RPM Sector Breakfast | 6 March | 7.30am – 10am | Wellington |
| Ashburton Regional Meeting | 23 March | 10am – 12pm | Hotel Asburton, Ashburton |
| Christchurch Regional Meeting | 23 March | 2pm – 4pm | The Tannery, Christchurch |
| April | |||
| Gisborne Regional Meeting | 6 April | 4pm – 6pm | Emerald Hotel, Gisborne |
| C&I Sector Breakfast | 10 April | 7.30am – 10am | Hotel Pullman, Auckland |
| May | |||
| Superstars Breakfast | 1 May | 7.30am– 10am | Grand Millennium, Auckland |
| June | |||
| NZ Auctioneering Championships Draw | 17 June | 5.30pm – 7.30pm | REINZ, Auckland |
| NZ Auctioneering Championships Heats | 18 June | 10am – 5pm | REINZ, Auckland |
| NZ Auctioneering Championships Finals | 19 June | 10am – 6pm | REINZ, Auckland |
| Manawatu & Wanganui Regional Meeting | 20 June | 4pm – 6pm | Manawatu Golf Club, Palmerston North |
Survey Results
Thanks to those who completed our quick property management survey. The proposed banning of letting fees was the key area of concern identified, with nearly 60% of respondents highlighting this as the big issue for 2018. This was followed closely by meth, with 45% of respondents wanting greater clarity around tenant lability when meth contamination is below the 1.5mcg/100cm2 threshold.
Other concerns included the Healthy Homes Guarantee Bill and the challenges around convincing landlords of compliance requirements, and reduced rental stock if landlords sell-up due to the cost of compliance. Your answers help REINZ focus its advocacy efforts in the right areas so thanks again to those who participated!
REINZ Property Management Forum
REINZ invites its property management members to attend the REINZ Property Management Forum on 27 February 2018 from 10:30am - 12:00pm at the REINZ Centre of Excellence in Auckland.
Hear Steve Watson, National Manager Compliance and Investigations for Housing and Tenancy Services, discuss the review of the Residential Tenancies Act and other industry specific issues, from a regulatory perspective. REINZ will also reveal further details of its new property management membership offering, which is due to be launched in the second quarter of this year. The Forum will conclude with an opportunity for the industry to discuss key issues of concern.
Spaces are limited so please register your attendance here by 23 February 2018. Please note, this is a members-only event.
Click here to register
Tenant’s fixed-term tenancy reduced due to hardship; No pay-out for damage caused by tenant as damage covered by Landlord’s insurance
Facts: The case concerned a tenancy initially fixed until mid-2016. Prior to the end of the fixed term, the Landlord and Tenant agreed to extend it until mid-2018. The Tenant vacated at the end of 2017 and sought a reduction of the fixed term. She also sought reimbursement from the Landlord for her costs in repairing broken glass to a door before she vacated.
The Tenant said shortly after the fixed-term was extended to mid-2018, she experienced several significant issues that impacted her finances. These included taking out a loan to assist her son’s care after he suffered a mental health episode, taking out a loan to fix her broken down car, and her health issues. She produced a doctor’s letter confirming her ongoing medical condition had significantly deteriorated, to the extent that she could no longer live on her own and was impacting her work. Her condition had necessitated moving in with her daughter.
Decision: The Tenancy Tribunal agreed the Tenant had to justify a reduction of her fixed-term tenancy.
The Tribunal reiterated the law that to order a reduction of the fixed-term tenancy, it must be satisfied that the Tenant has had an unforeseen change of circumstances, where the severe hardship suffered if the tenancy continued, would be greater than the hardship suffered by the Landlord if the fixed-term was reduced.
The Tribunal noted the Tenant’s car breaking down could not be considered unforeseen (as most people account for these emergencies in their budget), it accepted that the combination of her son’s mental health condition and the deterioration of her own health issues were not foreseeable when extending the tenancy. It also accepted that the Tenant’s hardship in her continuing to pay rent under the fixed-term tenancy and contributing to the costs of sharing premises with her daughter would be significant.
The Landlord was ordered to reimburse the Tenant for her costs in repairing broken glass to a door. It found the Tenant had no intent to damage the door, and as the Landlord had insurance for this type of damage (even if the Landlord chose not to make a claim because the excess was higher than the repair cost), it was the Landlord’s responsibility to arrange the repair.
Exemplary Damages awarded against Tenants for Smoking Meth
Background:This decision provides an indication of how the Tribunal will treat meth contamination caused by tenants at levels below 1.5mcg/100cm2.
Facts: The tenancy ended in November 2017, when the Tenants were evicted.
The Landlord provided a pre-tenancy methamphetamine test confirming there was no detectable level of meth present at the beginning of the tenancy. A test done after the tenancy ended showed meth levels between 1.06 and 1.31 micrograms, which are below the 1.5mcg/100cm2 threshold in the New Zealand Standard.
Decision: The Tribunal can award exemplary damages of up to $1,000 if an unlawful act is committed intentionally by a tenant.
In this case the Tribunal awarded exemplary damages of $250 to the Landlord as it was satisfied that the tenants were smoking meth in the premises. The Tribunal noted that the smoking of meth inside the premises was an unlawful act and is not an act that a person can undertake unintentionally.
The Tribunal considered the Landlord and the general public have an interest in seeing that the use of meth in rental accommodation is taken seriously. An award of $250 in exemplary damages was awarded because the Tribunal noted the levels left behind indicated the tenants’ behaviour was not at the worst end of the scale.
This decision will appear on the Tenancy Tribunal website shortly. We will provide a link as soon as the decision is publicly available.
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.
Feedback welcomed for review of Agreement for Sale and Purchase of Real Estate
REINZ and the Auckland District Law Society is undertaking a full review of the standard REINZ/ADLS Agreement for Sale and Purchase of Real Estate form. This revision concerns the content and clauses within the Agreement (not just formatting and style). We welcome any industry feedback on changes you would like to see to the agreement. We are especially interested to hear about issues that are prominent for the industry, e.g. methamphetamine testing. Comments can be sent to Sonia Ng, Lawyer, REINZ Advisory Services.
Disclosing Purchaser’s Information to Vendor
Background: The Licensees were aware that the purchasers intended to use the Property for their business, and that the vendor was to live in the neighbouring property after he sold the Property.
Facts: After settlement, the vendor found out about the purchaser’s intended use of the Property, and immediately raised objections to the Council with other neighbours. As a result, the purchasers abandoned their plans for the business and sold the Property. The Purchasers alleged that the Licensees should have disclosed their intended use of the Property to the vendor.
The Licensees explained that they did not disclose the purchasers’ plans for the Property, as they considered that information was confidential to the purchasers.
Decision: The CAC found the Licensees engaged in unsatisfactory conduct.
In withholding relevant and important information about the purchasers’ intended use of the Property from their client, the Licensees deprived their client of the opportunity to make an informed judgement about whether to sell to the purchasers. The CAC found this was a breach of Rule 9.1 of the Client Care Rules (licensees must act in their client’s best interests) and Rule 6.1 (licensees owe fiduciary obligations to their client).
The CAC considered that there may be situations where acting in good faith and fairness (Rule 6.2) means the Licensees need to hold the Purchasers’ information confidential from their client. However, the CAC noted this is most likely to be where the withheld information does not adversely impact the client.
In light of this decision, if you become aware of information about the purchaser, which is likely to adversely impact the vendor, it is suggested that you discuss with your supervisor/branch manager about whether there is a duty on you to pass that information to your vendor. If the decision is to disclose the information, it may also be appropriate to make the purchaser aware of your intentions, and explain that the disclosure is required of you under the Rules. Always check with your supervisor or seek legal advice before disclosing anything that you are unsure about.
New Agreement to sublease Available on e-Forms
A new Agreement to sublease form is now available on the REINZ e-Forms platform.
Please note that this form will not be available on the Legacy e-Forms platform. The Legacy platform is no longer supported and we do not encourage Members to use it, nor do we accept any liability or responsibility arising from your use of the Legacy platform. The Legacy platform will be disestablished in due course.
Please email any advisory or compliance questions to Sonia Ng, Lawyer, REINZ Advisory Services, and we may feature your question and our response here. This column 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.
Thanks for all your feedback over the last few months around our recently released Search in the Enhanced Statistics Portal. Based on this feedback, we have made a number of changes, adding more features and improving the usability.
A few things we have added recently include;
- Quick filters on the Search page – amend Sale Date, Bedrooms and Sale Price range quickly
- You can now download a CSV from Table view
- Search for sales in a specific street as opposed to a suburb or city
- Quickly flick to detailed information of a property sale, from the Map or Table view sections
For an in depth run down of the improvements made, please view the video.
Once again thank you for your feedback and please continue to email your suggestions through to statistics@reinz.co.nz.
REINZ Member Benefits partner, Coffee Club withdraws offer. However, we still have a great number of member benefit offers that aren't available elsewhere. Check out all the deals here.
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.
