Exciting Enhancements to the REINZ Statistics Portal
REINZ Chief Executive, Bindi Norwell gives a brief overview on some of the exciting additions and enhancements that have been made to the REINZ Statistics Portal in this short video - check it out and then try for yourself!
Can an overseas person buy a residential rental property?
This question can be answered with reference to the OIO “Can You Buy a Home to Live In” fact sheet.
People in the green category of the fact sheet can freely buy residential property, whether that’s a home to live in, or to hold onto and rent out. These people can buy one home, or several without restriction.
People in the orange category of the fact sheet can’t buy a rental property. They can apply to the Overseas Investment Office to buy one home but only if they are going to live in it. People in the red category of the fact sheet generally can’t buy here at all without meeting complex overseas investment tests.
There are some investment property options for people in the orange or red categories.
- They can apply for consent to buy an apartment off the plans in a large multi-storey development of 20 or more units, and then onsell it once the development is complete
- They can buy an apartment off the plans from a large development that has an exemption certificate without needing consent. The certificate allows the developer to sell up to 60 percent of the units to overseas people. Overseas people can’t live in these, but they can hold them as an investment without having to onsell
- They can buy apartments off the plans from a large development that has a transitional exemption certificate without needing consent. These apartments were underway before the new regime came into force and all of the units can be sold to overseas people. If an overseas person buys one of these apartments, they don’t have to onsell and they can also live in them
- They can buy a hotel room and lease it back to the operator without needing consent. The overseas person can stay in the room for up to 30 days per year
- They can apply to the Overseas Investment Office to buy land that is sensitive for other reasons, or significant business assets. Both involve complex tests to assess the benefit to New Zealand of the sale.
LINZ has issued an updated Residential Land Statement (s51 OIA).
Find the updated form here.
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.
Case Update: High Court clarifies authority of real estate agents
Facts: The Trustees were registered proprietors of the Property. On 23 August, the Trustees executed an Agreement to sell the Property to Mr K. It contained a finance condition to be fulfilled within five days of Mr K’s offer being accepted. On 23 August, Mr K was informed that: his offer was accepted; the Agreement would be dated 23 August; and the time to complete the finance condition would commence from 23 August. On 24 August, a real estate agent acting for the Trustees emailed Mr K and mistakenly noted that the finance condition was due to be completed by 30 August. On 27 August, Mr K was informed that the Trustees had received another offer and were triggering an “escape clause” in the Agreement meaning Mr K had 3 working days to satisfy all conditions. The Trustees did not receive notice that the finance condition had been completed by 28 August and they cancelled the Agreement. Mr K did not accept the cancellation was valid and registered a caveat against the Property’s title. Mr K’s primary argument was that the Trustees’ real estate agent misrepresented the finance condition’s due date in the 24 August email and accordingly the Trustees were prevented from cancelling the Agreement on 28 August. This relied on the legal concept of estoppel.
Decision: Associate Judge Smith explained that to successfully raise an estoppel, the representation must have been clear and unequivocal. That was not the case here. The Agreement clearly stated when the finance condition needed to be completed by. The 24 August email did not indicate that the Agreement had been changed. In these circumstances, it was not reasonable for Mr K to rely on that email. The notification that the “escape clause” had been invoked did not change that conclusion. Mr K was correctly told that he had three working days to complete all conditions. The real estate agent was entitled to expect that Mr K and his solicitors would be aware that the “escape clause” would not alter the date to complete the finance condition. The estoppel argument also failed as the real estate agent who sent the 24 August email was not authorised to amend the finance condition. Mr K was required to establish that the real estate agent’s representations purporting to vary the Agreement could be attributable to the Trustees. If he could not, it would not be legitimate to rely on those representations. Associate Judge Smith summarised the case law which supported the view that agents do not have authority to vary a contract without specific authorisation. Therefore, Mr K’s argument failed. The Judge ordered that the caveat be removed.
Case Update: Contacting lawyer without consent constitutes unsatisfactory conduct
Facts: The Licensee was engaged to list the Property for sale. The Property was owned by a Trust with three trustees. Trustee 1 made several complaints against the Licensee, the primary complaint being that the Licensee had engaged with the Trust’s solicitor without her consent. The Licensee adduced emails in support of his position that he had obtained Trustee 1’s consent. The most explicit of these said, “I can check with [the Trust’s solicitor], if that is OK with you?” Trustee 1 did not directly respond to this question. The Complaints Assessment Committee declined to take any further action. Trustee 1 appealed against that decision.
Decision: The READT found that the correspondence did not establish that Trustee 1’s consent was obtained for the Licensee to contact the Trust’s solicitor. The Licensee made an offer to contact the Trust’s solicitor and Trustee 1 did not accept or reject that offer. Where a property is owned by the trustees of a trust, licensees owe fiduciary obligations to all parties concerned. As part of this, licensees must ensure that they have instructions from all parties, or express authority to act on the instructions of only one party, before taking a step such as contacting the parties’ lawyer. The Licensee argued that there were differing preferences between the Trustees. This did not excuse his omission. To the contrary, this made it more important to ensure that he had the necessary authority. The failure to obtain consent constituted a breach of the duty to act in good faith and deal fairly with all parties engaged in a transaction. In the circumstances, a formal apology by the Licensee to Trustee 1 was appropriate. This took into account the Licensee’s explanation that he thought he was doing the right thing by contacting the lawyer.
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.
Non-Verifiable Education
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 Nelson, Greymouth and Napier!
Watch the Salesperson AML Training webinar, or the Compliance Officer Training webinar.
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 - LAST CHANCE
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
Wellington YPIRE - End of Year Celebration
Thursday 8 November
Held at Bethel Woods Bar with special guest Tal Meser - early start-up CEO of Tapi, who will be speaking about his journey and experience of being young in business.
Tickets are only $30 and spaces are limited, so get in quick! Spot prizes will be given away on the night (stay tuned for what you could be in to win!)
Auckland YPIRE - End of Year Celebration
Thursday 8 November
Dress to Impress! Held at Broadside Bar, Level 6 at Seafarers with special guest Michael Boulgaris, Luxury Real Estate Agent, who will be speaking about his journey and success.
Tickets are only $30 and spaces are limited, so get in quick! Spot prizes will be given away on the night (stay tuned for what you could be in to win!)
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!
2018 Thames Bowls Tournament
Wednesday 21 November
All real estate agencies are invited to enter teams of three. If you cannot get a team of three from the industry (i.e. managers, salespeople, property managers or administrators), you can still have teams which must include two members from the industry and one other person.
RTA and Healthy Homes
Consultation on the changes to the Residential Tenancies Act and Healthy Homes Standards has now closed. Thank you to those REINZ members who provided feedback. You can view REINZ’s submissions here:
Residential Tenancies Act submission
Healthy Homes Standards submission
REINZ will keep members updated as matters progress.
Letting Fee Ban
A reminder to members that the letting fee ban comes into force on 12 December 2018. If you have any queries regarding the ban, please contact lgerrad@reinz.co.nz
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.
Face-to-face training
Enhanced Statistics - Auckland
Thursday 15 November, 10am - 11am
PropertySmarts Training - Auckland
Thursday 15 November, 11.15am - 12.15pm
Webinar training
Market Intelligence Webinar
How to create a Market Insights Report
UPDATE: Find all Forms for an Address
REINZ has released a minor update to the eForms this week improving the speed and usability of some of the features of the site. One of the top requests we receive from agents has been made available for all agents, to be able to find all forms relating to a single address. Now if you have multiple agreements for a single property, you can view all the forms related to it in one simple interface. To access this new feature, choose “View by Address” in the menu on the left side of the eForms website.
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.
Health and Safety reminder
After a few incidents that have been reported to REINZ, we would like to take this opportunity to remind you of the importance of the recent changes to the Health and Safety Act.
REINZ recommends that businesses review their health and safety policies annually.
Check out the REINZ Health and Safety Guide here.
In The Media
Farm sales have taken a dip across the country, but REINZ believes that will change in the coming months.
Read the full 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.
