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Reminder: From 29 October 2019, the Real Estate Agents Disciplinary Tribunal will be able to order up to $100,000 compensation for an agent’s unsatisfactory conduct

This is in addition to the $100,000 compensation that they can order for an agent's misconduct.

The remaining provisions of the Tribunals Powers and Procedures Legislation Act 2018 (TPPL) will come into effect on 29 October 2019.

This means that section 110 (Determination of charges and orders that may be made if charge proved) of the Real Estate Agents Act 2008 (Act) will be amended to reflect the below:

If the Real Estate Agents Disciplinary Tribunal finds that an agent has engaged in unsatisfactory conduct and it appears that they have caused a person to suffer a loss as a result of their unsatisfactory conduct then, the Tribunal can order the agent to pay up to $100,000 in compensation but only if:

• the agent’s unsatisfactory conduct is more than a minor or technical breach of the Act; and
• the order is in line with what a court of competent jurisdiction would make in relation to a similar claim.

REINZ advocated against the implementation of this provision as REINZ was of the view that adding to the Tribunal powers to award civil damages in relation to unsatisfactory conduct would erode the distinction between the two levels of conduct (misconduct and unsatisfactory conduct). REINZ also provided evidence that that the disciplinary regime was working well based on the Real Estate Authority’s own research completed in June 2016. However, it is clear that Parliament could see more benefit arising out of increasing the Tribunal’s powers as opposed to not doing so.

We remind agents of the importance of adhering to the Code of Conduct Rules considering the financial repercussions associated with a finding of unsatisfactory conduct.

Agents should also be checking their insurance policies to ensure that they have appropriate cover.

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Case Update: Agent adheres to professional standards - No breach of confidentiality here!

The complaint in this case was by a business owner who wanted to sell his café.

The business owner wanted to sell the café and therefore, contacted the Licensee to list the business for sale.

What happened?

• The café was listed for sale on Trade Me on 27 November 2018
• On 5 December 2018 the Licensee, contacted the landlord of the property and informed them that the business owner had listed the business for sale
• The business owner had not been informed by the Licensee that she was going to disclose this to the landlord
• The business owner complained that this was a breach of confidentiality and that it affected their ability to negotiate with the landlord over the extension of their lease which then affected the sale and value of their café.

How did the Licensee respond to this?

• The Licensee said that she contacted the landlord to ascertain answers pertaining to any earthquake damage to the business
• She assumed that the business owner had told the landlord about the decision to sell the business already
• The business owner had received a new 6-year lease agreement in October 2018, prior to signing the agency agreement on 16 November 2018.

How did the Complaints Assessment Committee (CAC) arrive at their decision?

• The CAC agreed that a person’s business dealings or finances can be considered personal information
• The CAC noted that the information was however, in the public domain (on Trade Me) prior to the Licensee informing the landlord
• The CAC found that the exception under Rule 9.17 of the Code of Conduct Rules had been met which provides that a Licensee must not disclose confidential personal information unless, disclosure is consistent with the privacy principles of the Privacy Act 1993
• Privacy Principle 11(b) provides that an agency may not disclose personal information unless, that information is publicly available, and it would not be unfair or unreasonable to disclose the information
• The Licensee needed to know whether or not the building had sustained any damage from the Kaikoura earthquake. The business owner was unable to provide this information and she therefore, had to contact the landlord
• The CAC found that it was not unreasonable or unfair for the Licensee to contact the landlord because she was under the obligation to understand what she was selling as this would then enable her to make fair and proper disclosure of any defects to any prospective purchaser.

Finding
No finding of unsatisfactory conduct was made.

Find the full decision here.

Tip:
1. To avoid upsetting your client about disclosing client information to those indirectly involved, you should obtain the consent of your client first.

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Having trouble getting clients to understand why you need to undertake Customer Due Diligence (CDD)?

The Ministry of Justice have a General Overview Brochure on why CDD is so important.
Feel free to provide this brochure to your clients.

The Department of Internal Affairs also has a page on CDD and explains why it is required.
You can also provide this to your clients as it has examples of what you may request from them to fulfil this obligation.

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Unsure about something? Head to Advisory Resources on our website

Advisory Resources is a virtual library that provides members with a variety of information, best practice guides and templates to assist with the compliance and legal aspects of real estate.

You can find help on various topics such as:

Click here to access Advisory Resources

Feel free to direct any compliance related questions you have to advisory@reinz.co.nz

• Agency Agreements
• Anti-Money Laundering
• Advertising and Marketing
• Auctions
• Conjunctional Arrangements
• Disclosure
• Overseas Investment Act
• Privacy
• Tenders

Verifiable Training

Auckland Verifiable Training - FINAL CHANCE
Wednesday 20 & Thursday 21 November
Registration deadline Friday 15 November - a $50 per person late fee will apply after this date.

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Auckland C&I Workshop - LAST CHANCE

Wednesday 25 October
Unit Titles Act, disclosure, commission disputes and more.
Check out the poster | Book here

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Running successful auction campaigns

Wednesday 6 November
A high energy, interactive session for all sales people and auctioneers alike. Presented by Aaron Davis, 2019 REINZ National Auctioneering Champion, who has property pulsing through his veins!
Book here

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Christchurch Fresh Starter Auctioneer Training

Monday 25 & Tuesday 26 November
Fun, interactive and engaging 2-day rookie auctioneer training facilitated by Mark Sumich. NV = 7 hours.
Book here

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Verifiable Dates for 2019

Region	Dates	Location
November
Auckland 3	20 - 21	Events on Khyber	Book Now

2019 REINZ Auckland | Waikato | Bay of Plenty | Taupo Golf Tournament

Monday 18 November, St Andrews Golf Course, Hamilton
Entry includes green fees, prize table, first drink and after match platters.
Thank you to our sponsors Ingham Prestige Mercedes-Benz and Skills.
This event is open to REINZ Members, partners and clients registrations close on Friday 8th November (unless sold prior). Registration will be open on the day from 10:30am with the Matte Black Restaurant open for Morning Tea, Lunch and Coffee. Shotgun start at 12:00pm.
Book here

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REINZ | Real Women in Real Estate Cocktail Evening

Wednesday 27 November, Events on Khyber, Grafton, Auckland
Connect, engage and be inspired by like-minded, successful women in real estate!
Join REINZ and RWIRE as we partner together to bring three special guest speakers, Leanne Pilkington from Laing+Simmons Sydney, Megan Jaffe from Ray White Remuera and Lynette McFadden from Harcourts Gold for a cocktail evening with prize draws and goodie bags.
Book here

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2019 Auckland Bowls Tournament

Thursday 28 November, Balmoral Bowling Club, Auckland
Each team is to be made up of at least one registered bowler and three other players. Please register the whole team in a single entry.
The tournament is open to REINZ agency members, their salespeople and administration staff. Friends and Family are welcome. At least one player from each team must have a REINZ ID number.
Registration closes Monday 25 November, 5pm.
Book here

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November
2019 REINZ Golf Tournament	18 November	12pm - 5pm	St Andrews Golf Course, Hamilton
REINZ | Real Women in Real Estate Cocktail Evening	27 November	5.30pm - 8pm	Events on Khyber, Grafton, Auckland
2019 REINZ Bowls Tournament	28 November	9am - 3pm	Balmoral Bowling Club, Auckland

Census Data with Location Profiler

Get an overview of a suburb with a mix of census and sales data with Location Profiler.

- Enter your area in the search bar
- Click on "Quick Market Report"

Try it out now!

Petition to Parliament urges reform of law governing $50b apartment sector

REINZ strongly supported change because there was an urgent need for greater transparency and greater access to key information for buyers. REINZ has been a key member of the working group for a number of years and backed the petition.

It is imperative that purchasers can have confidence that their body corporate committee has a code of conduct to abide by and that conflicts of interest are disclosed by committee members and body corporate managers – especially given the significant level of consumer funds held by some of these body corporate managers.

Read the blog here.

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House price rises tipped to hit 7% in coming year

REINZ Chief Executive Bindi Norwell said: "September was a strong month pricewise, with record median prices recorded in four regions- Manawatu/Wanganui, Southland, Taranaki and Hawke's Bay."

Read more 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.