In The Know
23 October 2019
Click the headings below to read more or visit the Property Management page
Letter to the Minister of Police & President of the Police Association
Last week the Minister of Police and President of the Police Association made on the record comments to the media alleging that “Police are arresting lawyers, accountants, real estate agents….” and that “behind the scenes is the lawyers, accountants and real estate agents that are laundering [gangs] money”.
Given how hard the real estate profession has worked to meet the AML deadline REINZ was extremely disappointed with the comments and has written to the Minister of Police and President of the Police Association on behalf of the industry to express our views.
We will update you on any progress we make on this issue on your behalf.
REINZ website maintenance
As part of the REINZ Maintenance Schedule, updates will be made to the REINZ website this Saturday (26 October) from 11pm and may take up to 6 hours.
All REINZ web pages will be unavailable during this time, including the REINZ Statistics and eForms portals. We appreciate your patience and understanding.
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 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.
Do not wait for a penalty decision to be issued if you wish to appeal a finding of unsatisfactory conduct! Appeal time limits have changed.
The Real Estate Agents Disciplinary Tribunal (Tribunal) was required to determine whether the appeals filed by two Licensee’s involved in the case were out of time or not.
Section 111 of the Real Estate Agents Act 2008 (the Act) sets out the right of appeal to the Tribunal against determinations and decisions of a Complaints Assessment Committee (CAC). Section 111(1) came into force on 14 November 2018 as set by the Tribunals Powers and Procedures Act 2018. Previously, section 111 only made reference to “determinations” however, now refers to notice of a “decision”.
Section 111(1) is reproduced in part below:
111 Appeal to Tribunal against determination by Committee
- A person affected by a determination of a Committee may appeal to the Disciplinary Tribunal against the determination within 20 working days after the day on which notice of the relevant decision was given under section 81 or 94…”
Section 94 of the Act is relevant as it provides that when the CAC makes a determination, they must promptly give written notice of that determination to the complainant and licensee and describe the right of appeal as per section 111.
What happened in this case?
The CAC issued a decision on 26 April 2019, in that it found the appellants had engaged in unsatisfactory conduct which was “the substantive determination.” On 21 June 2019, the CAC issued a “penalty decision”.
The appellants notices of appeal were dated 16 July 2019 and only referred to the substantive determination.
If the appeal period ran from the substantive determination, then the last day to lodge the appeal would have been 24 May 2019 (out of time). If it ran from the penalty decision, then the last day would have ended 19 July 2019 (within time).
The question was whether the 20 days ran from the substantive determination of unsatisfactory conduct or the penalty decision.
Finding
The Tribunal stated that its jurisdiction had now widened as a result of the additional reference to notice of a “decision” under section 111.
The means that both substantive determinations of unsatisfactory conduct and penalty decisions can be appealed and therefore, the appeal period runs from the “relevant decision” which is either the determination or decision that is being appealed.
The appellants were accordingly, out of time.
What does this mean for agents?
If an agent considers that a finding of unsatisfactory conduct is wrong then, they can appeal it within 20 workings days of the notice of the determination.
If an agent considers that a penalty decision was wrong, then they must file an appeal within 20 working days of receiving that decision.
Click here for the full decision here.
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.
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.
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
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
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| November | |||
| Auckland 3 | 20 - 21 | Events on Khyber | Book Now |
2019 Australasian Auctioneering Championships - stream live today
For more information on the Championships, click here
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
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
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
| 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 |
REINZ Statistics platform enhancement
Land area calculation made easy with CSV export.
A simple but useful enhancement - we have removed the metric from the Land Area column to help you make your calculations quicker and easier.
For example, a property that is 787m2, will display as 0.0787 (ha) in the CSV export.
REINZ AGM - Notice of Meeting
Notice is hereby given that the Annual General Meeting of members will be held on Tuesday 26 November 2019.
Registrations will commence on the day from 9.30am. The Meeting will begin at 10.00am and close at 11.30am.
The meeting will be held at Events on Khyber, Level 2, 155 Khyber Pass Road, Grafton, Auckland.
Pre-registrations would be appreciated by Monday 18 November, for the purposes of voting and catering and can be sent to agm@reinz.co.nz
If you have any items of General Business or any enquiries, concerns or apologies to be noted, these can be submitted to agm@reinz.co.nz by Thursday 2 November 2019.
Notice of Meeting | Register attendance or apologies
This week on the blog: Signing a joint tenancy
Living in a flat with other flatmates is a popular choice in New Zealand. However, tenants are often unaware of the risks of co-signing a tenancy agreement.
Reminder to be fair when letting a property
"If a check on a preferred tenant finds that they were in fact in the right when taking a landlord to the Tribunal, then this should be considered and the prospective tenant shouldn't be 'blacklisted' for standing up for their rights," Bindi Norwell REINZ Chief Executive said.
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.
