In The Know
20 March 2019
Click the headings below to read more or visit the Property Management page
Last Friday’s attack on Christchurch has left the nation reeling and on behalf of the REINZ Board and the wider REINZ team our thoughts and deepest sympathies go out to everyone who has been affected by this tragedy.
May all of the messages of hope, community and togetherness that have emerged over the last few days continue to shine bright in times of darkness.
Many of your businesses may have shared the relevant support lines with you, but to reiterate, free 24/7 help is available for anyone experiencing distress by calling or texting 1737.
Best wishes,
Bindi
Unhappy Purchaser
This case involved a complaint made by a purchaser against a licensee who was acting for the vendor.
The purchaser, who was a first home buyer contacted the licensee on 19 December 2017 to discuss the property. The licensee provided the purchaser with a Land Information Memorandum (LIM) and a building report by an unqualified building inspector, both acquired by the vendor. It was on this same day that the licensee drafted an offer on behalf of the purchaser.
The purchaser claimed that she had not been given the chance to seek legal advice before signing the Agreement for Sale & Purchase (Agreement). She also claimed that the licensee put undue pressure on her by getting her to agree to a three-day due diligence clause.
The purchaser also claimed that the licensee failed to disclose to the purchaser that the LIM report noted that the bathroom alterations required consent and therefore, there was no Code Compliance Certificate (CCC).
Legal advice
The purchaser acknowledged that she signed an Agency Consent by Customer (Purchaser) Prior to Entry into Contractual Document form (Consent Form), wherein clause 2 confirmed that the purchaser was advised to seek legal advice prior to entering into an agreement. She stated that she was actually provided the Consent Form after signing the Agreement. The licensee responded to this allegation by stating that the purchaser knew she could seek legal advice during the due diligence period.
The Complaints Assessment Committee (CAC) did not accept the licensees reasoning and was found to have breached Rule 9.7 of the Professional Conduct and Client Care Rules 2012 (Rules), which states that a licensee must recommend a prospective client, a client, or a customer who signs an Agreement, Agency Agreement or other contractual document to seek legal advice.
Unfair pressure
The purchaser stated that the three-day due diligence clause was not enough time to complete proper due diligence as the Christmas holidays were coming up. The licensee responded by stating that the vendor insisted on the offers being confirmed prior to the Christmas break however, contradicted himself by referring to a competing offer which had a seven-day due diligence clause which would have taken it over the Christmas break.
The CAC stated that it would have been extremely difficult for the purchaser to seek an independent building report and her own LIM and therefore she had to rely on those provided to her by the licensee. The CAC found that the licensee breached Rule 9.2 which explains that a licensee must not place a client, prospective client or customer under undue or unfair pressure.
The CAC also found that the licensee breached Rule 5.1 to exercise skill, care, competence and diligence in real estate agency work, Rule 6.2 to have acted in good faith and dealt fairly with the purchaser and Rule 6.3 where the licensee was not to engage in any conduct likely to bring the industry into disrepute.
Disclosure
The licensee did not disclose to the purchaser that the LIM had identified that there was an outstanding CCC.
The CAC stated that it was reasonable for the purchaser to assume that there was nothing wrong with the property, considering that the licensee had provided her with the LIM without alerting her to the outstanding CCC.
The Licensee responded by stating that he relied on the purchaser’s legal advisor to point out any issues with the LIM. The CAC disregarded this and stated that it was the licensee’s responsibility to disclose to the purchaser, anything discovered that was unusual or any restrictions associated with the property.
The CAC found that the licensee breached Rule 6.4 which requires a licensee to not mislead a customer or client, nor provide information, nor withhold information that should by law or in fairness be provided to a customer or client. The CAC stated that the licensee should have disclosed the outstanding CCC to the purchaser. He was found to have also breached Rule 10.7 which states that the licensee must disclose known defects to a customer.
Finding
A finding of unsatisfactory conduct was made.
You can find the decision here.
Verifiable Training
Auckland Verifiable Training
Wednesday 3 & Thursday 4 April
Registration deadline Monday 1 April - a $50 per person late fee will apply after this date.
Dunedin Verifiable Training
Wednesday 10 & Thursday 11 April
Registration deadline Thursday 4 April - a $50 per person late fee will apply after this date.
Wellington Verifiable Training
Wednesday 10 & Thursday 11 April
Registration deadline Thursday 4 April - a $50 per person late fee will apply after this date.
Christchurch Workshop - Defective EQC repairs
Wednesday 3 April
Issues, red flags, and protecting yourself.
Property Manager Workshop: Health and Wellbeing through Mindfulness
Friday 12 April
As a busy Property Manager, it’s easy to feel stressed, time-pressured and under the pump. By focusing on what you’re doing in the present moment, you can help calm your mind, alleviate stressful moments and feel much more in control. Becoming more mindful helps reduce tension, stress and anxiety – especially in a fast-paced working environment when juggling your rent roll, managing relationships, dealing with conflict and more!
REINZ Rural & Lifestyle Roadshow
5 locations between 30 April - 15 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, Cromwell and Kerikeri.
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 North Shore.
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| April | |||
| Auckland 1 | 3 - 4 | Events on Khyber | Book Now |
| Wellington/Lower Hutt | 10 - 11 | Lower Hutt Events Centre | Book Now |
| Dunedin | 10 - 11 | Edgar Centre | Book Now |
| 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 |
Sector Events
South Island Rural Seminar
Tuesday 26 March, 10am - 2.30pm
REINZ is returning to West Melton on Tuesday 26 March for a four hour South Island rural seminar the day before the start of South Island Agricultural Fieldays in Kirwee.
Join MC Paul Cunneen to listen to a range of speakers deliver bespoke content to the rural sector. A panel of successful rural & lifestyle agents will share their vision on how to ‘Get your rural business engaged for the new financial year’.
Enjoy this unique networking opportunity with wider colleagues and other brands and earn 4.0 non-verifiable hours.
Commercial & Industrial Breakfast
Wednesday 10 April, 7.30am - 10am
REINZ is excited to have Rod Marler (Panuku Development Auckland), Stephen Selwood (Infrastructure New Zealand), Chris Cunniffe (Tax Management New Zealand) and Lisa Gerrard (REINZ) speaking with us for our 2019 Commercial and Industrial Breakfast held at the Maritime Room, Auckland.
North Island Rural Seminar
Tuesday 11 June, 11am - 3:30pm
Timed to coincide with the start of Fieldays at Mystery Creek and back for the third year running, diarise for this popular 4-hour seminar filled with knowledge, inspiration and information, tailored specifically to the Rural Sector. 4.0 NV hours towards your 2019 CPD.
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
With a great lineup of speakers, the 2019 YPIRE Conference is one you do not want to miss!
Grab your earlybird tickets today!
For all REINZ Events, visit the Education Portal.
| March | |||
| South Island Rural Seminar | 26 March | 10am - 2.30pm | Melton Estate, Christchurch |
| April | |||
| Commercial & Industrial Breakfast | 10 April | 7.30am - 10am | Maritime Room, Auckland |
| May | |||
| Auckland Golf Tournament | 16 May | 10.30am - 5.30am | Akarana Golf Club |
| June | |||
| North Island Rural Seminar | 11 June | 11am - 3.30pm | Runway Lounge, Hamilton Airport |
| 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 |
REINZ Statistics: Market Insights Report - Compare your selected suburb with National Medians.
Did you know you can run a report based on several suburbs and the New Zealand national median data?
1. Enter your suburb in the search bar
2. Refine your filters
3. Enter "New Zealand" and click "Search" again.
Your report will now have your suburb medians along with the national medians.
Visit the REINZ Statistics Platform now!
February Residential Property Report
REINZ released its residential property statistics for February yesterday which showed that the number of houses sold across New Zealand fell 9.5% in February.
Despite volume falls, median house prices keep rising & five regions saw record median house prices.
You can read the full report here.
REINZ urges purchasers to undertake due diligence when insuring their property
Bindi Norwell, Chief Executive at REINZ says: “Whether IAG’s decision will impact the Wellington property market will depend on whether other insurance companies drastically increase their premiums or make significant changes to their policies, such that insurance becomes unaffordable for purchasers, or that banks no longer accept the insurer when bank lending is involved.
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.
