In The Know
17 April 2019
Click the headings below to read more or visit the Property Management page
FlexiSign is now mobile compatible!
REINZ is pleased to announce that FlexiSign is now compatible with mobile and tablet! Negotiate and sign your contracts, no matter where you are!
Be Flexible - Negotiate and manage your contracts on your smart phone or tablet
Get Notified - Receive notifications when changes are made to the agreement
Stay in Control - Access a record of offers created and counter-offer changes.
Request a demo now or Login to eForms to sign up!
Create an agreement using REINZ eForms, send the document to FlexiSign and begin negotiating the particulars with the vendor and purchaser.
Visit www.flexisign.co.nz for more information.
Poor service provided by Real Estate Agent
On 10 January 2018, a complaint was made to the Real Estate Agents Authority pertaining to the conduct of a licensed Agent.
The complainants who were also licensees and were the sellers of the property, claimed that the Agent provided poor service to them in that, he did not keep them updated on a regular basis, he failed to insert the relevant clauses into the Sale and Purchase Agreement (Agreement) and accordingly allowed the purchaser to access the property prior to settlement taking place. The Agent also released the keys to the purchaser prior to the possession date.
Agreement
On 16 October 2017, the sellers received the Agreement and counter-offered it on the same day. They had altered the settlement date, made changes allowing for the Christmas period which had not been considered in the original offer and inserted additional clauses, one of which was a cash-out clause. The cash-out clause meant that the sellers could bring forward the conditional date on five days’ notice if they obtained a better offer on the property. The Agreement was signed by the purchasers on 19 October 2017. The dated Agreement was faxed from the Agent to the seller’s solicitor on 27 October 2017.
The Agent responded saying that the sellers were both licensees and therefore, were familiar with the provisions used in agreements.
On 22 November 2017, the Agent sent a second offer to the sellers. This offer did not have the relevant “back up” provision required when there is another contract in place. The sellers then informed the Agent about this and this provision was accordingly, inserted.
The Complaints Assessment Committee (CAC) found that the Agent did not follow up the first agreement for some time and it was the sellers themselves, who inserted the cash-out clause. The CAC stated that the fact that the sellers were agents themselves, had no bearing on the professionalism required of the Agent.
Access to the property
The Agent opened the property for the purchasers to enter and clean the property before the Agent was certain that the deposit was in her trust account (despite the agreement going unconditional).
Rule 9.5 of the Professional Conduct and Client Care Rules 2012, states that the licensee must take due care to ensure the security of land and avoid risks of damage from unauthorised access. It was possible that damage could have been done prior to confirmation of the deposit.
Finding
A finding of unsatisfactory conduct was made in relation to the above.
You can find the decision here.
Tip: The lesson for agents from this case is that their actions must always be professional, irrespective of who their client is and what their client’s skillset is.
Defective EQC Repairs - what are your obligations?
A recent Earthquake Seminar was given by the well-known Christchurch law firm, Wynn Williams. The seminar covered real estate agent obligations pertaining to defective EQC repairs. Below is a summary of what was covered.
Defective EQC repairs have been well publicised in the past and are caused by a range of factors. One of the reasons behind defective repairs is that the assessment relating to the scope of works required to effect repairs, is not carried out correctly and as a result, is under-scoped. Workmanship that has not met the required standard is another factor.
Defects can relate to drainage, foundations, fire walls and retaining walls.
How do defective EQC repairs affect you?
We refer to Rule 10.7 of the REAA Code of Conduct which denotes that licensees must disclose known defects and where it may be likely that the land is subject to hidden or underlying defects the licensee must either obtain confirmation from the vendor, supported by evidence or expert advice, that the land is not subject to defect or ensure that the purchaser is informed of any potential risk.
Investigate
To find out if the land is subject to any defects, you will need to investigate.
Get full disclosure on the listing form from the vendor. Ask specific questions and request for evidence of any work completed.
Obtain the EQC file and check evidence of works that matches scope which includes variations, photos, sign-off, contractor certificates, consent and Code of Compliance. Check if there are any expert reports such as geotechnical reports and structural reports.
Disclosure
The key to protecting yourself is disclosure.
You are not expected to be a building expert, therefore, you should recommend that the purchaser obtains their own report and checks the insurability of the property. If they choose not to get a report, warn of the risks which will enable them to seek expert advice if they choose to do so. You can recommend them to make their offer conditional on a building report as well.
Do not downplay any issues that you are aware of. As a matter of best practice, disclosure should be in writing and kept as part of your records.
Limitation Period
The limitation period commences when the claimant ought reasonably to have gained knowledge of the defects. This is because defects are generally discovered years later.
Penalties
If you fail to meet the disclosure requirements, action can be taken through the Real Estate Authority and individuals can be fined up to $15,000 while companies can be fined up to $30,000. Compensation can be awarded to purchasers for up to $100,000.
Civil claims can be made in relation to the Fair Trading Act and negligence. Breaching the Fair Trading Act can result in a $200,000 fine for individuals and $600,000 for agencies.
Easter Trading
Real estate agencies are not covered under the Shop Trading Hours Act 1990 and hence are not subject to the restricted trading hours during the Easter break and ANZAC Day.
Although the legal position allows it, we ask our members to bear in mind the special nature of these days when deciding whether to conduct open homes and auctions, e.g. after 1pm may be a more appropriate choice.
Remember that the following days are not “working days” under the Sale and Purchase Agreement for the purposes of calculating condition and settlement dates: Good Friday, Friday 19th April 2019; Easter Monday, Monday 22nd April; and Anzac Day, Thursday 25th April.
Verifiable Training
Thames Verifiable Training
Wednesday 1 & Thursday 2 May
Registration deadline Thursday 26 April - a $50 per person late fee will apply after this date.
Whangarei Verifiable Training
Wednesday 8 & Thursday 9 May
Registration deadline Thursday 2 May - a $50 per person late fee will apply after this date.
New Plymouth Verifiable Training
Wednesday 15 & Thursday 16 May
Registration deadline Thursday 9 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!
REINZ Rural & Lifestyle Roadshow
5 locations between 30 April - 9 May
REINZ has organised a 2-hour workshop for our rural & lifestyle sector, presented by John Abbott.
This session will cover getting your head right; prospecting; winning the pitch; presenting compelling information; increase marketing/campaigning; managing clients and closing sales.
Sessions are available in Hamilton, Invercargill, Christchurch and Cromwell.
Book Now
REINZ presents the Anti-Money Laundering Roadshow - Part 2!
Practical, hands-on and detailed training. Check out the poster
Find your suitable session and book now.
Last chance to book for Tauranga, Rotorua and Invercargill.
C&I Workshop: Advanced Negotiation Strategies to clinch that deal
Wednesday 1 May
Staying ahead in C&I real estate is tough. You need advanced negotiation skills and strategies to get ahead in challenging market conditions.
Presented by John Abbott, this workshop aims to hone your skills so you can get ahead of the pack and clinch that deal
Book Now
Appraisals and You - Staying safe with the REA
Friday 10 May
Hosted by Graham Crews, this is a must-see 2-hour workshop that ensure you have the clarity and understanding required when it comes to appraisals. This detailed session will get right to the heart of appraisals, covering off what you need to know in order to be compliant.
Book in now!
Can't make the session in Auckland? Join the Live-Streamed Webinar
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| May | |||
| Thames | 1 - 2 | Thames Civic Centre | Book Now |
| Whangarei | 8 - 9 | Northland Events Centre | Book Now |
| New Plymouth | 15 - 16 | Novotel | Book Now |
| 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
Thames Regional Meeting
Wednesday 1 May, 4:00pm - 5:30pm
Join REINZ Chief Legal Office Lisa Gerrard as we bring you the 2019 Thames Regional Update held at the Novotel Hotel. Drinks and nibbles will be supplied, registrations for catering and CPD purposes.
New Plymouth Regional Meeting
Wednesday 15 May, 4:00pm - 5:30pm
Join REINZ Chief Executive Officer Bindi Norwell as we bring you the 2019 Thames Regional Update held at the Novotel Hotel. Drinks and nibbles will be supplied, registrations for catering and CPD purposes.
Sports Tournaments
Auckland Golf Tournament
Thursday 16 May, 10:30am - 5:30pm
Entry includes green fees, prize table, first drink and after match platters. Thank you to our sponsors Property Press, Mercedes-Benz and Barfoot & Thompson. This event is open to REINZ Members, partners and clients. Registrations close on Friday 9th May (unless sold prior).
Registration will be open on the day from 10:30am. Prizes will be awarded for Stableford Competition and Men's & Ladies Gross.
For more information, please contact Events@reinz.co.nz
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 5 May for the best pricing!
For all REINZ Events, visit the Education Portal.
| May | |||
| Thames Regional Meeting | 1 May | 4.00pm - 5.30pm | War Memorial Civic Centre |
| New Plymouth Regional Meeting | 15 May | 4.00pm - 5.30pm | Novotel New Plymouth |
| Auckland Golf Tournament | 16 May | 10.30am - 5.30pm | Akarana Golf Club |
| June | |||
| 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 |
Free Training Sessions - 1.0 NV hour each
Building a CMA with PropertySmarts - Wednesday 1 May, 10.00am - 11.00am
A-Z of the REINZ Statistics Portal - Wednesday 1 May, 11.15am - 12.15pm
Streamlining your contracts with REINZ eForms - Wednesday 8 May, 10.00am - 11.00am
Introduction to FlexiSign - Wednesday 8 May, 11.15am - 12.15pm
.jpg)
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.
