In The Know
24 July 2019
Click the headings below to read more or visit the Property Management page
Award entries extended!
Due to popular demand, we have decided to extend the Awards entry deadline by one week!
You now have until 11.59pm on Wednesday 31 July to get your entries through for the 2019 REINZ Awards for Excellence in Real Estate.
These awards are free to enter and there are more than 40 awards to be presented (covering individual, office and agency level), so there is bound to be something suitable for yourself or your team!
Case Update: Agent fails to investigate red flags
The complainants in this case were the purchasers of a property that had been represented by the Licensee.
The details of the complaint were that the property was advertised as having 5 bedrooms, 2 living rooms, 2 bathrooms, 1 kitchen and 1 kitchenette when some of the rooms did not actually have consent.
The previous vendor had purchased the property as a 3-bedroom property and there was no kitchenette. The vendor then renovated the property and sold it.
The complainant claimed that Licensee 1 failed to disclose that the two bedrooms and kitchenette had not been consented.
The Licensee responded by stating that the vendor had not disclosed that the area was not consented to him and that there was no way in knowing that the property had unconsented works.
Red Flags
The Complaints Assessment Committee (CAC) noted that there were red flags that should have prompted Licensee 1 to ask questions about the renovations.
The CAC reviewed photos of the property and could see that the property was older and that it was obvious that renovations had been made and extra amenities were added as evidenced by the downstairs kitchenette and new pipes outside the property.
The CAC stated that in those circumstances, a prudent real estate agent would have asked questions as to the compliance of the renovations and if any consent had been obtained. Moreover, the LIM report did not indicate anything in relation to the older house having been renovated which should have put the Licensee on notice.
Rules 6.4 of the Code of Conduct Rules 2012 requires disclosure of information which should in fairness be disclosed. Rule 10.7 states that where it appears likely to a reasonably competent licensee that land may be subject to hidden or underlying defects, they must obtain confirmation from their client or ensure that the purchaser is informed so that they can seek expert advice on the matter (if they choose).
A prudent agent would have confirmed with the vendor on whether the works had complied with any council requirements under the Building Act at the time.
The onus is on the licensee to identify any potential risks especially, where there are red flags to alert licensees to a risk of hidden or underlying defects.
Finding
A finding of unsatisfactory conduct was made.
Key Takeaway:
- A key lesson that can be taken away for agents from this case is that where there is sufficient reason to believe that a property may have hidden or underlying defects, then the agent should take steps to confirm the matter with their vendor or signal this to the purchaser.
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.
AML Report due 31 August
REINZ kindly reminds members that the AML Annual Report is due 31 August 2019 for the period 1 January 2019 - 30 June 2019. The annual report is a requirement that is covered under section 60 of the AML/CFT Act.
The report needs to be submitted to the Department of Internal Affairs (DIA), which is the supervisor for the real estate sector.
The report provides you with the chance to review your risk assessment and compliance programme and it also gives DIA the opportunity to get to know your business better.
You need to ensure that you are registered with the DIA and activate your AML Online account because this is where you will submit your first annual report. If you are not registered with the DIA, you can do this here. AML Online is a new technology platform that will allow you to engage with the DIA in relation to submitting documents and sending queries to the DIA.
For more information on AML Online, click here.
Schedule 2A of the AML/CFT Act (Requirements and Compliance) Regulations 2017 provides the form which the annual report needs to be in.
The DIA has a FAQ page on the annual report.
For more information on your AML obligations, click here to access the DIA’s website.
Recent EQC Changes
Potential purchasers can now request previous claim information from EQC as a result of the recent changes to the Earthquake Commission Act 1993.
REINZ and the Real Estate Authority recommend that you or your vendor request this information directly from EQC and provide it to purchasers during the disclosure process to avoid unnecessary delays.
To access the Official Information Act Request Form, click here.
Please note that the EQC is still bound by the principles and provisions of the Privacy Act 1993.
Residential Tenancies Amendment Bill (No 2)
The Residential Tenancies Amendment Bill (No 2) has reached its third reading in Parliament. The Bill aims to amend the Residential Tenancies Act 1986 with the view of addressing tenant liability for damage caused to a rental property, methamphetamine contamination in rental premises and unlawful residential premises used for tenancies.
REINZ will be keeping up with the progress of the Bill and in turn, keeping members informed.
Verifiable Training
Kerikeri Verifiable Training
Wednesday 7 & Thursday 8 August
Registration deadline Thursday 1 August - a $50 per person late fee will apply after this date.
Napier Verifiable Training
Wednesday 21 & Thursday 22 August
Registration deadline Thursday 15 August - a $50 per person late fee will apply after this date.
New Workshop: Dog Workplace Safety
Thursday 22 August
Visiting properties with dogs? Keep safe around dogs by coming along to this course. Learn how to 'read' dogs, dog expressions and what to look out for so you stay safe when visiting properties.
Book now
AML Roadshow 3
REINZ is delivering AML sessions in 15 locations across New Zealand this July and August. These sessions have different content from previous roadshows and they are not-to-be missed! Highly-practical with expert presenters, these sessions are also an excellent opportunity to bring all your questions.
Find a session in your area and book now. Last chance to book for Hamilton, Dunedin, Auckland, Wellington, Palmerston North and Napier.
Check out the Roadshow poster.
Residential Property Management Qualification - Second Intake
Due to high demand, there will be a second intake starting 9 September.
Verifiable Dates for 2019
| Region | Dates | Location | |
|---|---|---|---|
| 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 |
Superstars Breakfast - Strategies for Success in Challenging Times
Thursday 8 August | GridAKL
Join us for this year's Superstars Breakfast where we will be discussing 'The Strategies for Success' with our panel, hosted by Shane Cortese from Harcourts Cooper & Co.
This year's panel is made up of: Edward Pack from Bayleys Ponsonby; Nick Wilson from Barfoot & Thompson Auckland City; Nicky Malloy from Harcourts Henderson Heights; Ritesh Verma from Property Brokers Whanganui; Rohan Thompson from Ray White Mt Roskill; and Colleen Strachan from UP Real Estate.
Find out more details, or book now here.
2019 RPM Conference - Thriving in Changing Times
Friday 2 August, Hilton Hotel Auckland
This not-to-be missed Property Management Conference is hosted by Simon McKinney and filled with a great line-up of speakers such as Lisa O’Neill, Dr Annette Beautrais, Steve Watson, Lisa Gerrard, Cassie Roma and Sheree Nicholas.
Breakout sessions will be available for Property Managers and Business Owners.
Find the full agenda here
Registration includes Cocktail Networking Drinks where the winner of the ‘2019 Recognition of Contribution to the Property Management Industry’ will be announced.
2019 REINZ Awards for Excellence
Tuesday 27 August, Cordis Auckland
We are returning to Cordis Auckland for another Gala Dinner presentation of awards with MC Laura McGoldrick.
Buy tickets for the Gala Dinner here.
Enter the Awards here - Last Chance!
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!
Group booking discounts available for 5 or more!
For all REINZ Events, click here.
| August | |||
| Thriving in Changing Times | 2 August | 9am - 7pm | Hilton Hotel Auckland |
| Superstars Breakfast | 8 August | 7.30am - 10am | GridAKL |
| Awards for Excellence Gala Dinner | 27 August | 6pm - 10pm | Cordis Auckland |
| Septmber | |||
| Inspire | Motivate | Connect Conference | 18 September | 10am - 7pm | Shed 10, Auckland |
Are you a visual learner? Or have visual clients?
Put your market data into a graph to create a digestible report.
1) Search for the area you want Market Insight data on
2) Select the type of chart you want from the right-hand side (line, bar or combo)
3) Choose the chart series, click "More Actions", then "Create Report" for the first graph
4) Click on "Stay on page" to continue to add charts to your report
5) Click "Go to Report Studio" when you are done
6) Give the report a name, save and download as PDF.
June Residential Property Market Update
REINZ Chief Executive Bindi Norwell gives a high-level overview of the Residential Property Market for June 2019 in this video - feel free to share across your social media pages or in your company updates.
Farm sales down 25%
REINZ rural spokesman Brian Peacocke said: "Product prices for beef, lamb and horticultural products remain strong and are improving, and while indications for dairy seem reasonable, volatility in that sector remains constant."
This week on the blog: Keep your promise, keep your customer
The pursuit of excellent customer service has been a debate point for decades. Some would argue that it is the WOW factor – or the over-delivery of promised services, often interpreted as going ‘above and beyond’ customer expectations.
Amazon gets into real estate by announcing partnership with Realogy
Amazon has announced a new partnership with Realogy, called TurnKey that will provide the brokerage with exclusive leads on potential homebuyers while also boosting Amazon’s smart home division and Home Services. Homebuyers who purchase through TurnKey will receive up to $5,000 in free services from those divisions of Amazon.
Read the article 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.
