In The Know
21 August 2019
Click the headings below to read more or visit the Property Management page
Revamped Privacy Guidelines for landlords and property managers are out!
The new Privacy Guidelines have now been modified by the Office of the Privacy Commissioner.
REINZ was consulted in this process.
The new guidelines distinguish between what information can be requested by Landlords/Property Managers when someone applies for a tenancy and what can be requested when they have chosen the preferred applicant.
One of the key issues REINZ had with the previous guidelines (produced in May) was that it was almost never justified to ask for the age of the applicant. This contradicted the Residential Tenancies Act which requires all tenancy agreements to state whether a tenant is under the age of 18 or not. The new guidelines now provide that Landlords/Property Managers can ask whether individuals are 18 years or older when they apply for the tenancy.
More clarification on when credit reports and criminal checks can be obtained is also covered in the guidelines.
To access the guidelines, click here.
To access the REINZ Information Sheet on the Privacy Guidance for Property Managers, click here.
2019 REINZ Superstars Breakfast
The 2019 REINZ Superstars Breakfast was recently held at GridAKL with six panelists from around the country who shared their insights and tips on how to succeed in a challenging market. Watch the brief video on the event.
REINZ Survey Results
Thank you to the 1,800 members who took the time out of their extremely busy schedules to complete our recent survey - we really appreciate the feedback.
We last undertook a member survey two years ago and saw the 2019 survey as a real opportunity to see how things have been going since the last survey. It is good news that 89% of members said REINZ is relevant.
Here's what you told us:
- 35% of members rated REINZ’s reputation as excellent (up from 31% in 2017)
- 89% of members see REINZ as being relevant (up from 88%)
- Advocacy for REINZ remains high with 82% saying something positive about REINZ (up from 79%)
- Value is evaluated as high (8-10 scores out of 10) by 49% of members (up from 47% in 2017)
- 45% believe REINZ is a well-run organisation (up from 39%).
This is great feedback and we’re pleased that there is positive sentiment from members.
We appreciate the honesty in your feedback and are currently working with the REINZ team to put an action plan together to work on these areas over the coming 12 months. We'll continue to update you on key actions we're taking based on your feedback and other key outcomes from the survey.
Case Update: Agent advises vendor to conceal renovations completed without consent
The Licensee in this case acted for the vendor in the sale of his property in June 2015.
Between 1996 and 1997, the vendor obtained consent from the Council to build alterations to the property. These included a domestic garage with bedrooms, a lounge and a conservatory. No Code of Compliance Certificate (CCC) was issued.
The vendor’s lawyers included a clause in the Agreement for Sale and Purchase that alerted purchasers to the fact that the property may not be compliant with the current Building Code and/or that no CCC had been issued. The clause ensured that the vendor would not be liable for the absence of any necessary building consents, once the property was sold.
The auction was to be held at 6:00 pm on 23 June 2015 however, prior to the auction taking place, the Licensee and the listing agent informed the vendor and his family that the potential purchasers were unlikely to bid on the property as a result of the clause.
The Licensee explained to the vendor that if work had taken place prior to 1 July 1993 when the Building Act came into force, no CCC would be required and the clause could be removed.
The vendor then discussed this with his family and informed the Licensee that the renovations had been completed in the early 1990’s under the old Act. This meant that the clause could be removed.
The Licensee did not seek to acquire any property documents confirming the date on which the building work took place, nor did he attempt to contact the vendor’s lawyer to discuss the clause, nor did he recommend that the vendor seek legal advice before the clause was removed.
The Licensee then went to the auction room and announced to those present that the clause had been deleted. The property then sold to the relevant purchasers.
Around 7-10 days after the auction, the Licensee was contacted by the purchaser’s lawyers in respect of obtaining the a CCC. An amount of $200,000 was retained in trust upon settlement pending the outcome of the CCC issue. Despite extensive negotiations, the vendor was unable to obtain the CCC and an agreement was reached to release the money to the purchasers.
The Real Estate Agents Disciplinary Tribunal found that the Licensee breached Rule 5.1 (exercise skill, care and diligence) and Rule 9.1 (act in best interest) of the Code of Conduct Rules 2012.
Tips:
- A key lesson from this case is that agents need to take steps to verify information put to them by their vendors when there is uncertainty around the reliability of the information.
- Passing on information that has not been verified, has the potential to significantly impact a transaction in particular, in an auction-based sale, where both the vendor and purchaser are locked into an unconditional contract.
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.
Summary of upcoming changes to the Privacy Bill - March 2020
The Privacy Act 1993 governs how agencies collect, use, store, disclose and provide access to personal information.
The Privacy Bill (the Bill) was introduced to Parliament in March 2018 and is due to come into effect in March 2020. The Bill will replace the Act with the intention of bringing New Zealand’s privacy law framework up to date with our digital society and promoting public confidence in the protection of their personal information.
Real estate agencies in New Zealand need to be aware of their responsibilities around data protection and ensure that their marketing systems and operational procedures are compliant with the law.
An information sheet on the key changes brought under the Privacy Bill and a Compliance checklist for your agency can be found here.
Verifiable Training
Tauranga Verifiable Training
Wednesday 4 & Thursday 5 September
Registration deadline Thursday 29 August - a $50 per person late fee will apply after this date.
Property Management Roadshow
Check out the poster here | Find a session near you and book here
Auctioneering Fresh Starter Training
Monday 7 & Tuesday 8 October
Fun, interactive and engaging 2-day rookie auctioneer training facilitated by Mark Sumich. NV = 7 hours
Book now
New AML Webinars
Residential Property Management Qualification
Intake Two starting 9 September 2019
Only two weeks left to register
2019 Special available now
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| 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 |
2019 REINZ Awards for Excellence Gala Dinner - SOLD OUT!
Tuesday 27 August, Cordis Auckland
We are returning to Cordis Auckland for another Gala Dinner presentation of awards with MC Laura McGoldrick.
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 Josh Tesolin, Tom Panos, Jake Millar and Lisa King, the 2019 YPIRE Conference is one you do not want to miss!
Use code AUGUST8 for 8% off individual tickets until the end of August!
For all REINZ Events, click here.
| August | |||
| Awards for Excellence Gala Dinner | 27 August | 6pm - 10pm | Cordis Auckland |
| Septmber | |||
| Inspire | Motivate | Connect Conference | 18 September | 10am - 7pm | Shed 10, Auckland |
Tips & Tricks - FlexiSign Edition
Make sure your contacts details are correct in the eForms tab before sending to FlexiSign - these can't be changed once pushed through to the negotiation section
The text token function won't work if you include the area code (+64) in the mobile field. Just start with 021... etc.
Include a detailed message in the body of the email when you send the form to each client to explain the steps and include your phone number to call if they have any questions.
A Gentle Winter – A Variable Market
The REINZ All Farm Price Index rose 1.4% in the three months to July 2019 compared to the three months to June 2019. Compared to July 2018 the REINZ All Farm Price Index rose 3.0%. The REINZ All Farm Price Index adjusts for differences in farm size, location and farming type, unlike the median price per hectare, which does not adjust for these factors.
This week on the blog: How tech can help the real estate profession succeed
Technology will continue to change and disrupt almost all industries. Blockchain and AI are undeniable forces of limitless opportunity. Amongst all this change, teams need to adapt and think of ways to add value to ALL customers, whilst working efficiently and in a way that doesn’t affect our health and overall wellbeing.
Property managers told not to go through prospective tenants' bank statements
Bindi Norwell, REINZ Chief Executive said: “We also welcome clarity on issues such as income verification/employment, smoking, expenses, and will be working with our members to communicate these updated standards in a timely manner.
“We absolutely agree with the Commission’s list of questions that should not be asked at any stage of the tenancy application including nationality, ethnicity, physical/mental disability, gender, sexual orientation etc. These have no place in discussions about finding a tenant and could only be used to discriminate. We will also be reminding our members of their obligations under the Human Rights Act,” concludes Norwell.
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.
