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In The Know

19 October 2018

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Overseas Investment Act Live on Monday! FAQs and Resources

The new rules relating to purchase of residential land by overseas persons take effect on Monday, 22 October.
From Monday, overseas people will generally not be able to buy residential land unless they have a permanent residency visa and intend to live in New Zealand. You can find useful resources to help you understand the changes on the REINZ website by clicking the Advisory tab and scrolling across to the Overseas Investment Act hyperlink. Included in the resources are 2 basic flyers prepared by the OIO in consultation with REINZ, that we recommend you provide to purchasers and vendors to help them understand the new rules (Overseas Investment Office 'Right to Buy' Flyer & Overseas Investment Office 'Investing in NZ' Flyer).
The OIO has also produced a useful online tool to help purchasers work out whether they require consent. The tool can be accessed here.

REINZ has also today released a Purchaser Acknowledgment Form that agents can ask purchasers to complete at the time of making an offer and before attending an auction.

OIO FAQs


  • Can I help the purchaser to complete a s51 Residential Land Statement?
    In most cases, at the time a purchaser makes an offer, an agent will not have complete knowledge of the purchaser’s situation. Accordingly, agents should not, in many instances, advise purchasers on their eligibility status or assist purchasers to complete the s51 Residential Land Statement (the s51 Statement can be completed prior to settlement with the purchaser’s lawyer). Agents should simply give information to purchasers on the process and necessary documentation needed to be completed. REINZ recommends that agents provide the OIO’s ‘traffic light’ information sheet to purchasers to help them understand their eligibility (insert link). If purchasers have any doubt about their eligibility to buy property, agents should:
    1. In the case of an auction or tender, direct purchasers to speak to their lawyer for advice on their eligibility before attending the auction or submitting a tender;
    2. In the case of a sale by negotiation, ensure the agreement is conditional upon the purchaser obtaining OIA consent by completing the option in the ‘Conditions’ box on the front page of the agreement (please note, the default period for consent in clause 10.6 is 65 days, which can be reduced to 15 working days for consent to buy a residential property to live in).
    REINZ has also produced an optional Purchaser Acknowledgment Form which agents may wish to have purchasers complete.

  • My buyer is an overseas person. They entered into the agreement on 10 October but it doesn’t go unconditional until 1 November – do they have to apply for consent?
    No. As the contract is dated before 22 October the purchaser is not subject to the new rules and does not need to apply for consent. The date the contract becomes unconditional does not matter, rather it is the date of the agreement that is important.

  • Can an overseas person buy a residential house as an investment property?
    No. Under the new rules an overseas person must intend to live in the property as their home. So they cannot buy a residential property that they intend to use as a rental.

  • My vendor is an overseas person and they want to sell but are worried that they may not be able to buy again – do the new rules apply to people who already own a house?
    Yes, the new rules apply to overseas person who already own property in New Zealand. The vendor will need to apply for OIO consent to buy a new home once they sell their existing home.

A webinar on the changes to the Overseas Investment Act is now available on the REINZ Education Portal.


2018 Australasian Auctioneering Championships

REINZ is delighted to announce that Andrew North from Harcourts Cooper & Co is the winner of the 2018 Australasian Auctioneering Championships for the second time.

Andrew brings the trophy home to New Zealand after the cup being in Australia for the past three years. Andrew beat 16 other competitors to take out the top gavel in the 20th edition of the Australasian Auctioneering Championships.

Bindi Norwell, Chief Executive at REINZ says: “Congratulations to Andrew on being awarded the title of the best auctioneer in Australasia – the calibre of this year’s entrants was extremely high, and it was an incredibly tough competition. Tonight’s win is something Andrew can be extremely proud of – especially considering the difficult bidding sequence competitors were set by our Chief Judge. Congratulations also to Vincent Doran from South Australia who took out the Schools Competition; "

Check out the highlights from each call on our Youtube page.
Find all the photos from the event on our Facebook page.

Non-Verifiable Education

Overseas Investment Act Webinar

The Overseas Investment Office presents on the changes to the Overseas Investment Act that affects the purchase of residential properties in New Zealand. This is a must-see webinar for all real estate professionals!
Watch now.


Anti-Money Laundering Nationwide Roadshow

REINZ and AML Solutions are running AML Training sessions throughout New Zealand between now and December through the regions, for Sales Agents, Compliance Officers and Administrators.

Registrations are now open via the REINZ Website.
Find training in your area here - Last chance to book for Christchurch and Timaru!
Watch the video answering some frequently asked questions here.

If you would like to arrange individual training for your brand or office, please do not hesitate to contact AML Solutions at realestate@amlsolutions.co.nz


Auctioneering Fresh Starter Training

Monday 29 & Tuesday 30 October
Fun, interactive and engaging 2-day rookie auctioneer training facilitated by Mark Sumich.


Hamilton - Property Management Workshop

Tuesday 13 November
Prospecting strategies and growing your rent roll, presented by Angela Little


Verifiable Training

Auckland Verifiable Training
Tuesday 20 & Wednesday 21 November
Registration deadline Tuesday 13 November - a $50 per person late fee will apply after this date.


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

Upcoming Events

2018 REINZ Golf Tournament - LAST CHANCE!
Monday 29 October
Entry includes green fees, prize table, first drink and after match platters. Get in quick - this tournament sold out prior to closing last year! Thank you to our sponsors Skills and Ingham Prestige Mercedes-Benz.
This event is open to REINZ Members, partners and clients registrations close on Friday 19th October (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.

Blenheim Regional Meeting
Friday 2 November
Join the REINZ team hear about what’s happening at REINZ and share the latest data for the Blenheim region. We also have our partner Property Press sharing some relevant new research. At the end of the presentation there will be the opportunity to network over morning tea. We look forward to seeing you!

Nelson Regional Meeting
Friday 2 November
Join the REINZ team hear about what’s happening at REINZ and share the latest data for the Nelson region. We also have our partner Property Press sharing some relevant new research. At the end of the presentation there will be the opportunity to network over morning tea. We look forward to seeing you!


October
2018 REINZ Golf Tournament 29 October 10.30am - 5pm St Andrews Course, Hamilton
November
Blenheim Regional Meeting 2 November 10am -12pm Scenic Hotel Marlborough
Nelson Regional Meeting 2 November 2.30pm - 4.30pm Trailways Hotel

Case Update: Tenancy Tribunal awards $50,000 for damage caused by dog

Facts: Landlord and Tenant each made claims against the other. The Landlord’s claim was that the interior of the Property was damaged by the Tenant’s dogs. Specifically, the dogs had scratched wooden panelling and windows. The Tenant argued that the Landlord was aware of the dogs and scratches and did not raise any issues during the tenancy. Further, the Property’s fence was damaged so for a period the dogs needed to be kept inside. The Tenant’s claim was two-fold: first, the Landlord breached the Tenant’s quiet enjoyment by conducting internet searches of the Tenant; secondly, there was unlawful entry when the Landlord accompanied a contractor and a photographer to the Property. The Tenant said he consented to the contractor’s visit, but not the landlord and the photographer.

Decision: The Tribunal’s agreed that the extensive damage was caused by dog scratching. This occurred over the course of the tenancy, although it may have worsened while the dogs were kept inside. The Tribunal explained that tenants are liable for damage that intentional, meaning that the tenant meant to cause the damage or knew it was certain to result. Here, as the damage occurred over a period, the Tenant must have known that the damage would result. Relying on the Landlord’s evidence, the Tribunal was satisfied the remediation cost less betterment was $54,470. This was capped at $50,000, which is the Tribunal’s jurisdictional limit. In response to the Tenant’s claim, the Tribunal explained that the Landlord accompanying the contractor to the Property was entirely reasonable. However, the Tenant did not consent to a photographer attending. This constituted unlawful entry and exemplary damages were available. Here, $250 were appropriate given that this was at the lower end of conduct giving rise to exemplary damages. The Tribunal explained that undertaking internet searches of publicly available material was not a breach of quiet enjoyment.

Click here for the decision.

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.


REINZ and Real-iQ deliver the NZ Certificate in Residential Property Management

Lift your professionalism and standards and prepare yourself now for the potential industry regulation.
Click here for more information.

Case Update: Licensee and Agency sentenced for unsatisfactory conduct

Facts: The Complaints Assessment Committee found the Licensee and Licensee’s Agency guilty of unsatisfactory conduct. This related to two properties: property A and property B. In respect of property A, the Licensee did not: (a) advise the purchasers of the risk of methamphetamine contamination; (b) advise the purchasers of a vendor methamphetamine contamination test and negative result; or (c) advise the purchasers to make the agreement conditional on a methamphetamine contamination test. In respect of property B, the Licensee did not: (a) arrange an agency agreement; (b) provide the vendor with a CMA; (c) recommend the vendor take legal or other advice; or (d) advise the vendor of the risk of paying a double commission. The finding against the Agency was that the Agency did not actively supervise the Licensee. The Agency responded by arguing that the Licensee did not act in good faith in her dealings with the Agency.

Decision: The Committee noted that the Licensee had no prior disciplinary findings against her. She displayed remorse and had taken steps to upskill herself. Notwithstanding this, deterring poor conduct is one of the purposes of the disciplinary process. The only means available to the Committee to achieve this was a fine of up $10,000 (for an individual). Here, there were seven separate breaches of the Rules. Cumulatively, the conduct amounted to a mid to high level of unsatisfactory conduct. In this case a fine $7,000 reflected the Licensee’s conduct. However, a discount was appropriate given the Licensee’s record; she was censured and fined $5,000. Turning to the Agency, the Committee was left with the inescapable inference that there had been a failure of supervision. Active supervision requires a supervisor to do some digging where the circumstances justify it. In this case, the supervisor should have asked to see the agency agreement and CMA. The maximum fine for agencies is $20,000. The Agency’s failure represented a moderate level of unsatisfactory conduct. A $7,000 to $13,000 fine was appropriate. However, this was significantly discounted because the Agency: (a) was not directly involved in the poor conduct; (b) was remorseful and had apologised to the parties involved; (c) sought independent advice and improved its systems; and (d) had no prior disciplinary findings against it. Therefore, the Agency was censured and fined $2,000.

Click here for the decision.

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.

Enhanced Statistics Short Online Tutorials Available Now!

Short online training tutorials are now available under REINZ Education - Non-Verifiable- Online Webinars 2018 platform. Each focuses on various segments of the site and runs for ten to fifteen minutes. This is a great way to start learning about all the additional information the Enhanced Statistics site includes and how you can benefit from it whilst earning non-verifiable. Training also caters to Rural & Lifestyle.

See below to access some of the tutorials available now or to view the full range please visit the REINZ Education platform.


Home Page Overview – Enhanced Statistics
Understand the different components of the Enhanced Statistics site and how to navigate your way around it through this quick 10 minute online tutorial.

Classic Search – Enhanced Statistics
Quick 15 minute tutorial on how to search for sales in the Enhanced Statistics Platform using the Classic Search function - the simplest way to search and export sales with a similar layout to the original REINZ Classic Sales Site.

Map & Table View Search – Enhanced Statistics
Quick 15 minute tutorial on how to search and export sales using the Map & Table Search functions in the Enhanced Statistics Platform. Find out about new features available including detailed property information, photo galleries, travel distances to amenities and much more.

Location Profiler - Enhanced Statistics
Learn how to use Location Profiler and start researching median sale trends, total sales volumes, number of dwellings, demographic information, school zones and much more to help you become the expert in your area in this 15 minute webinar.

Custom Territories - Enhanced Statistics
Learn how to customise a territory with the draw tool for complete flexibility or use the school zone tab to define a location based on a specific school zone. Custom locations can be used across the entire statistics site so data is more relevant than ever across not only sales but general statistics and demographic information in this 15 minute webinar.

2018 REINZ AGM

The Official Notice of Annual General Meeting of members will be held on Monday 26 November 2018 at Events on Khyber, 155 Khyber Pass Road, Grafton.

Email agm@reinz.co.nz to register, note apologies, or submit any items of general business.

Less than a week left to make nominations for REINZ Life Members. Life Membership may be recommended for any person who has provided outstanding and meritorious service to REINZ and/or the Real Estate profession.

Click here for the REINZ Life Member Nomination Guide and Nomination Form.

Completed nomination forms must be sent to Lisa Gerrard no later than 5pm, 24 October 2018.


TaxSnaps offers REINZ Members 20% discount

TaxSnaps is a cloud expense app, ideal for those who are self employed and want to keep good records of tax deductible expenses but don't need or want accounting software.

TaxSnaps are pleased to offer a 30 day, no obligation free trial and a 20% discount for REINZ members on their annual subscription (discount code: REINZFY19).

TaxSnaps is IRD approved to store your business records, giving you peace of mind while you focus on growing your business.

To find out more check out www.taxsnaps.co.nz/realestate


6 good reasons to buy your first home

Home ownership is something that comes with significant responsibility and shouldn’t be rushed into. But on the flipside, there are some great reasons to keep saving that deposit for a home.

Read the full article by Bindi Norwell 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.