Bright-line Test Extension from 2 to 5 years
Legislation extending the Bright-line test from 2 years to 5 years is due to come into force soon. The extension means that for sale and purchase agreements entered into from the day the legislation comes into force, any gains made from the sale of residential properties acquired and disposed of within 5 years will be subject to taxation under the Bright-line rules.
Certain exemptions apply for the Bright-line test, and different rules for calculating the start and end of the Bright-line period apply for certain transactions, including “off the plan” sales. REINZ will release its updated Information Sheet as soon as the new Bright-line test comes into force.
Ring-fence Losses
Today the Government has announced that it is moving forward with plans to seek to ring-fence losses on residential rental properties. According to the announcement made by Revenue Minister, Stuart Nash the intention of the new policy is to ‘level the playing field between speculators and investors, and home buyers’.
The IRD is seeking feedback on the proposals by 11 May 2018. For more information, you can read the IRD’s issues paper here.
Non-Verifiable Training
Auctioneering Fresh Starter Training
Monday 9 & Tuesday 10 April
Presented by Mark Sumich. A 2-day training course suitable for those who have called under 10 auctions or none at all! Interactive, fun and lively session for those who want more practice and training that will also add to non-verifiable hours.
Anti-Money Laundering
Thursday 12 April
Come along to a one-hour presentation by Lisa Gerrard (REINZ’s Chief Legal Officer) on the hot topic of Anti-Money Laundering.
Supervision Workshop
Friday 30 April
A practical 2-hour workshop led by Graham Crews, who is sure to engage and entice you in this subject area.
Keep up with the latest non-verifiable courses being updated here.
Verifiable Training
Dunedin Verifiable Training Seminar
Wednesday 11 & Thursday 12 April
Registration deadline Tuesday 3 April - a $50 per person late fee will apply after this date
Gisborne Verifiable Training Seminar
Wednesday 11 & Thursday 12 April
Registration deadline Tuesday 3 April - a $50 per person late fee will apply after this date.
| Region | Dates | Location | |
|---|---|---|---|
| April | |||
| Auckland Central | 4 - 5 | REINZ Centre of Excellence - Grafton | Book Now |
| Dunedin | 11 - 12 | The Dunedin Centre | Book Now |
| Gisborne | 11 - 12 | Emerald Hotel | Book Now |
| May | |||
| Thames | 2 - 3 | War Memorial Civic Centre | Book Now |
| Whangarei | 9 - 10 | Toll Stadium | Book Now |
| New Plymouth | 16 - 17 | Novotel | Book Now |
| Hamilton | 23 - 24 | Hamilton Working Mans Club | Book Now |
| Invercargill | 23 - 24 | Ascot Park Hotel | Book Now |
| June | |||
| Taupo | 6 - 7 | Great Lakes Centre | Book Now |
| Rotorua | 20 - 21 | Holiday Inn | Book Now |
| Whakatane | 27 - 28 | Tuscany Villa | Book Now |
| Timaru | 27 - 28 | The Grosvenor | Book Now |
| July | |||
| Wellington | 4 - 5 | ASB Sports Centre | Book Now |
| Nelson | 25 - 26 | Trailways Hotel | Book Now |
| Palmerston North | 25 - 26 | Hotel Coachman | Book Now |
Upcoming REINZ Regional Meetings
This is your chance to hear Bindi Norwell speak about what’s happening at REINZ and your region. Also join Dame Rosanne Meo in her final year as Chair.
Gisborne Regional Meeting - Friday 6th April, 2pm – 4pm, Download the poster
Upcoming REINZ Breakfasts and Seminars
Commercial & Industrial Breakfast - Tuesday 10 April, 7.30am – 10am
Join MC David McConnell, Dame Rosanne Meo, Wendy Alexander and Bindi Norwell at this breakfast seminar designed specifically for Commercial and Industrial specialists.
Cost includes entry, buffet breakfast, tea and coffee and a line-up of top speakers.
Download the poster
Superstars Breakfast - Tuesday 1 May, 7.30am – 10am
Come and join MC Bryan Thomson, Dame Rosanne Meo, Bindi Norwell and our panellists as they share their insights into their winning secrets to success at our popular ‘Superstars Breakfast’.
Cost includes entry, buffet breakfast, tea and coffee as well as a line-up of top speakers.
Download the poster
North Island Rural Seminar - Save the date - Tuesday 12 June, 11am – 3pm
On the day before Mystery Creek opens – join us for a half day seminar, filled with knowledge, inspiration and information, tailored specifically to the Rural Sector.
Download the poster
REINZ Conference
Residential Property Management Conference - Friday 3 August, 8am - 5.30pm
Join us for our annual RPM Conference for 2018, held at the Pullman Auckland Hotel. Hosted by Simon McKinney and featuring keynote speaker Hon Phil Twyford.
Please register separately if you wish to attend the cocktail party where we will announce an inaugural Property Management Award.
Commercial & Industrial Conference - Friday 3 August, 8am - 5.30pm
Join us for our annual C&I Conference for 2018 and earn 6.0 NV hours. Hosted by Simon McKinney and featuring keynote speaker Hon Phil Twyford.
This year our conference will be held at the, Pullman Auckland Hotel. Please register separately to attend the evening cocktail party giving you the opportunity to network with colleagues.
Conference Cocktail Evening - Friday 3 August, 5.30pm - 8pm
Join us for our end of conference cocktail party at the Pullman Auckland Hotel. This is included in your conference registration but get in quick as there is limited space!
| April | |||
| Gisborne Regional Meeting | 6 April | 2pm – 4pm | Emerald Hotel, Gisborne |
| C&I Sector Breakfast | 10 April | 7.30am – 10am | Hotel Pullman, Auckland |
| May | |||
| Superstars Breakfast | 1 May | 7.30am– 10am | Grand Millennium, Auckland |
| June | |||
| North Island Rural Seminar | 12 June | 11am – 3pm | Hamilton |
| NZ Auctioneering Championships Draw | 17 June | 5.30pm – 7.30pm | REINZ, Auckland |
| NZ Auctioneering Championships Heats | 18 June | 10am – 5pm | REINZ, Auckland |
| NZ Auctioneering Championships Finals | 19 June | 10am – 6pm | REINZ, Auckland |
| Manawatu & Wanganui Regional Meeting | 20 June | 4pm – 6pm | Manawatu Golf Club, Palmerston North |
| August | |||
| REINZ Property Management Conference | 3 August | 8am - 5.30pm | Pullman Hotel, Auckland |
| REINZ C&I Conference | 3 August | 8am - 5.30pm | Pullman Hotel, Auckland |
| Conference Cocktail Evening | 3 August | 5.30pm - 8pm | Pullman Hotel, Auckland |
| September | |||
| Women's Breakfast | 27 September | 7.30am - 10am | Pullman Hotel, Auckland |
| October | |||
| Australasian Auctioneering Championships Draw | 14 October | 6pm - 7.30pm | REINZ Centre of Excellence, Auckland |
| Australasian Auctioneering Championships Heats | 15 October | 10am - 5pm | Q Theatre, Auckland |
| Australasian Auctioneering Championships Senior Finals | 16 October | 10am - 5pm | Q Theatre, Auckland |
| Australasian Auctioneering Championships Gala Dinner | 16 October | 6.30pm - 10.30pm | The Maritime Room, Auckland |
Proposed Tenant Letting Fee Ban
Thank you to those who have responded to our survey so far and written to us with your comments about the proposed tenant letting fee ban. Your feedback will be incorporated into our submission on the issue (a date for the filing of submissions has not yet been released by the Select Committee).
A copy of the proposed Bill is available here.
If you haven't yet provided your feedback and would like to, please complete this survey.
Exemplary damages for subletting without consent
Facts: The Tribunal described this tenancy as one of those where there appeared to be “something of a revolving door as far as occupants were concerned”. Initially, three tenants were noted on the fixed-term tenancy agreement.
Various tenants moved in and out of the premises, some via short-term AirBnB stays arranged by the initial tenants. Eventually, one of the tenants wanted to move in his wife and two children. The Landlord refused, because that would mean there were five occupants in the premises, when no more than four occupants were permitted. That tenant consequently moved out but was still paying rent and has “sublet” his room without permission.
Decision: The Tribunal awarded $300 in exemplary damages against the Tenants.
The tenancy agreement did not prohibit assignment or subletting, which meant that section 44 of the Residential Tenancies Act applied. Section 44 states that in the absence of an express prohibition, the tenant may assign or sublet with the landlord’s prior written consent.
In this case, changes of tenants and subletting did take place without the Landlord’s prior written consent. The evidence was that in some cases the Tenants acted deliberately and despite the Landlord’s objections.
However, the Tribunal considered there was minimal impact to the Landlord as rent continued to be paid, and at no time were there more than the four permitted occupants in the premises. The Tribunal thus assessed $300 in exemplary damages to be appropriate.
Tribunal declined to issue ruling on liability for fire
Facts: The tenancy ended when the property was substantially damaged by fire. The Tenant sought a declaration from the Tribunal that she is not liable for, or is otherwise exonerated from meeting, the costs of making good the damage that resulted from the fire.
A report from the NZ Fire Service indicated the fire may have been caused by equipment plugged into a multi-plug board in one of the bedrooms. At the relevant time, the bedroom was used by the Tenant’s sub-tenants.
The Landlord’s insurer has declined cover on the basis that the Landlord did not disclose the property was used as a short-stay accommodation business.
At the hearing there was significant dispute between the Landlord and Tenant, about whether the Landlord had agreed to the Tenant operating a “homestay business” in the premises. As at the date of the hearing, the Landlord has continued to seek cover from his insurer. The issue of whether the insurance policy will cover the damage remained in dispute.
Decision: The Tribunal declined to make the declaration sought by the Tenant under section 78(1)(a) of the Residential Tenancies Act.
In making this decision, the Tribunal considered the effects of Holler v Osaki, and accepted there was insufficient evidence at this stage as to whether the Landlord is in fact insured for the damage. That would depend upon findings in relation to a number of disputed facts including, whether the Landlord had allowed the Tenant to use the premises for her homestay business.
Asbestos Information Sheet
REINZ is working with experts and liaising with Worksafe to obtain clarity around the application of the new Asbestos regulations to property managers.
Our Information Sheet will be released as soon as possible.
Disclosure of previous positive methamphetamine testing
Facts:The crux of the complaint was that the Licensee failed to disclose positive meth testing of the property to the complainants.
The Licensee denied that they withheld the test results. They explained that they were first engaged to sell the property by auction. The auction passed in with the top bidder making an offer conditional on a meth test. The results came back with 0.05ug/100cm2 in an indicative composite test. This level was below the Ministry of Health guidelines at the time and the present NZ Standard.
The vendor argued against disclosure, but the Licensee reiterated their duty to disclose under the Client Care Rules. The vendor then decided to do three tests by three different reputable testing companies. All these tests gave “zero” readings. The vendor then rejected the top bidder’s counter offer.
The Licensee’s agency held a meeting to specifically discuss the property. It was decided that the property can be marketed as there was no health risk, but that the Licensee would disclose to prospective buyers of the testing that had taken place, including discussing the top bidder’s report and the vendor’s subsequent three reports. It was decided that they would not provide the top bidder’s report, as they had no permission to make it public, although they would discuss the results from that report.
The Licensee claimed that when they met the Complainants, they made the abovementioned disclosures.
Decision:The CAC decided to take no further action on the complaint.
The CAC accepted that the issue of the previous meth testing was raised with prospective buyers, including the complainants. This view was supported by evidence from the Licensee, the agency, the vendor and two prospective purchasers. What was less clear was whether the Licensee highlighted the positive test obtained by the top bidder.
On balance, the CAC considered it was likely that this information was not highlighted. However, given the extremely low reading in the initial test and the “zero” readings in the vendor’s subsequent tests, it held the Licensee was not required to draw further attention to the positive test. The CAC noted that its decision may have been different if there were any possible health risks identified in the earlier testing.
Easter Trading Hours
Real estate agencies are not covered under the Shop Trading Hours Act 1990 and hence are not subject to the restricted trading hours during the Easter break and ANZAC Day. Although the legal position allows it, we ask our members to bear in mind the special nature of these days when deciding whether to conduct open homes and auctions, e.g. after 1pm may be a more appropriate choice.
Remember that the following days are not “working days” under the Sale and Purchase Agreement for the purposes of calculating condition and settlement dates:
- Good Friday, Friday 30 March 2018
- Easter Monday, Monday 2 April 2018
- ANZAC Day, Wednesday 25 April 2018
Fresh round of funding available for Women's Leadership Development
Women & Leadership New Zealand (WLNZ) is excited to announce a new pool of scholarship funding is available for women working in the real estate and property sector to undertake a range of leadership development programs.
The initiative is providing women with grants of between $3,000 and $8,000 for part-time accredited courses that are starting later this year.
Expressions of Interest
Funding is strictly limited and early registration is advised. Find out more and register your interest by completing the Expression of Interest form here prior to April 27.
What the proposed ban on letting fees will mean for the rental market
If the Government really wanted to help renters, it should be regulating the property management market.
CEO, Bindi Norwell said, "What's really important from our perspective, we've been advocating for a while now that we have some regulation in this market, because at the moment any person can be a property manager without having all the right things in the right place."
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.
