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In The Know

30 January 2019

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AML Compliance Video for your vendors!

We understand that the new Anti-Money Laundering regulations are causing some headaches, and that many clients do not understand what is required of them.

We have put together this short video that you can share with your clients to help them understand what is required of them. We hope this helps.

Case Update: Tenants allowed dogs to contaminate premises

The issue in this case was whether the tenants complied with their obligations at the end of the tenancy.

The property management company claimed for rent arrears, compensation, a refund of the bond and reimbursement of the filing fee.

It was in 2018, when the property manager was made aware through complaints that the tenants were accommodating 12 dogs in the premises. The property manager advised the tenants to remedy the breach however, the tenants failed to take any action to rectify the problem. As a result of the breach, the property manager terminated the tenancy and on 28 September 2018 the Tenancy Tribunal granted possession to the property manager via enforcement. Once the premises had been vacated, it was found to be a health risk. All rooms were covered in animal faecal matter and the floor boards were soaked in urine. The tenants had also left a significant amount of rubbish at the property.

Obligations
The tenant’s obligations are outlined under section 40 of the Residential Tenancies Act 1986. Once a tenancy has ended, tenants must leave the premises reasonably clean and tidy, return all keys and security devices, replace smoke alarm batteries and leave the chattels provided by the landlord for the use of the tenant. The Tribunal found that the tenants did not comply with their obligations under the Act.

Was the damage intentional?
A tenant must pay the cost of repairs, if the damage is intentional. Damage will be considered intentional if the tenant intends to cause damage and takes steps to achieve this purpose. If a tenant allows for the damage to continue, knowing that damage is a certainty then this will also be considered intentional.

The Tribunal found that the tenants intended the damage by allowing the dogs to contaminate the premises. The tenants were ordered to pay costs that would return the property manager to the position had the tenants not breached their obligations.

All claims were proved.

You can find the full decision here.


Reduction in fixed-term tenancy

The issue in this case was whether a fixed term tenancy could be reduced.

The tenant applied for a reduction in the fixed-term tenancy which was due to end on 9 February 2019.

In accordance with section 66 of the Residential Tenancies Act 1986, the Tribunal has the authority to reduce a fixed term tenancy on two grounds. The first ground is whether there has been an unforeseen change in the tenant’s circumstances. The second ground is whether the tenant would suffer from severe hardship if the term of the tenancy were not reduced and balanced against whether this would be greater than the hardship suffered by the landlord if the term were reduced.

Unforeseen Circumstances
The tenant originally resided in Auckland and moved to Christchurch in early 2018 to live with her partner. During the tenancy, the tenant was subjected to abuse by her partner and she reached a point of feeling that she had little choice but to return back to Auckland.

On 3 December 2018, the tenant gave three weeks’ notice to the landlord’s agent.

The Tribunal found that the domestic violence suffered constituted as an unforeseen change in the tenant’s circumstances.

Severe Hardship
The Tribunal stated that the severe hardship to the tenant and hardship to the landlord would be assessed as financial. The Tribunal also noted that the hardship suffered by the landlord would be limited as they had found a new tenant.

As the landlord had found a new tenant, the Tribunal found that this limited the landlord’s hardship. The Tribunal therefore, ruled that the tenant’s hardship was greater than the landlord’s hardship. The fixed-term tenancy was reduced to 11 January 2019 which was the day the new tenancy would commence.

Given that a new tenant had been found, the tenant was not ordered to compensate the landlord as the landlord did not incur any loss of rental as a result of the reduction in tenancy.

The tenants claim to exemplary damages was dismissed as she could not prove that the landlord had committed an unlawful act.

You can find the full decision here.


REINZ and Real-iQ deliver the NZ Certificate in Residential Property Management

Lift your professionalism and standards and prepare yourself now for potential industry regulation.
Click here for more information.

Ask Advisory...

Question: Sole Agency has ended, but what if a purchaser that I introduced to the client during the sole agency period, enters into a Sale and Purchase Agreement through a new agency?

Answer: If you have used the REINZ Agency Agreement, you would only have a claim to commission if:

a) a Sale & Purchase Agreement was signed during the sole agency (Clause 5.1.1) or

b) within 6 months of the termination/expiry of the sole agency, the vendor entered into a private agreement with a purchaser who was introduced to the vendor via the agent (Clause 5.1.3) – which has not occurred in this case.

If the vendor enters into a sole agency with another agent, and during the course of that sole agency a purchaser you introduced buys the property then in the absence of an introductory clause or a conjunctional arrangement, it is unlikely that you could claim commission.

An introductory clause may have made the vendor liable to a double commission. We would recommend that a conjunctional agreement be entered into with the new agency.

For more information on Conjunctional Agreements, click here.


Multi-Offer vs Backup Offer

Remember that a multi-offer is when all offers are presented to the vendor at once. A backup offer on the other hand will only be initiated if the first offer does not work out. Therefore, if a multi-offer situation ends and a second offer comes through then this is referred to as a backup offer.

2018 Verifiable Training

The REA will be sending out letters to those licensees who did not complete their 2018 Verifiable Training by 31/12/2018. If you have any questions regarding your licence you will need to contact the REA on 0800 367 7322.


Verifiable Training

North Shore Verifiable Training
Wednesday 19 & Thursday 20 February
Registration deadline Thursday 14 February - a $50 per person late fee will apply after this date.


REINZ welcomes back Tom Panos

New Year, New You! Auckland - Thursday 21 February - Check out the poster

Modern Agent 2020! Wellington - Friday 17 May - Check out the poster

Note: Tom will also be presenting in Christchurch in 2019 - Info to come


Verifiable Dates for 2019

Region Dates Location  
February
North Shore 19 - 20 Netball North Harbour Centre Book Now
March
Christchurch 1 6 - 7 The Atrium Book Now
Queenstown 20 - 21 Mercure Queenstown Book Now
April
Auckland 1 3 - 4 Events on Khyber Book Now
Wellington/Lower Hutt 10 - 11 Lower Hutt Events Centre Book Now
Dunedin 10 - 11 Edgar Centre Book Now
May
Thames 1 - 2 Thames Civic Centre Book Now
Whangarei 8 - 9 Northland Events Centre Book Now
New Plymouth 15 - 16 Novotel Book Now
Hamilton 29 - 30 Workingmen's Club Book Now

Regional Meetings

Blenheim Regional Meeting
Monday 18 February, 10am - 12pm
Come hear Bindi Norwell speak about what’s happening at REINZ and share the latest regional data. Our partner Property Press will share some relevant new research. We look forward to seeing you!

Nelson Regional Meeting
Monday 18 February, 2pm - 4pm
Come hear Bindi Norwell speak about what’s happening at REINZ and share the latest regional data. Our partner Property Press will share some relevant new research and at the end of the presentation there will be the opportunity to mix and mingle over drinks and canapés. We look forward to seeing you!


Sporting Events

REINZ 16th Annual Fishing Tournament
Friday 1 March, 8am - 5pm; Weigh-in 3pm - 4pm
Auckland Sailing Club, 8 Tamaki Drive, Auckland

Partnered with Property Press, this is gearing up to be a great day with spot prizes and $2,250 worth of cash prizes up for grabs!

The registrations for the 2018 REINZ Fishing Tournament are now open and you can purchase all tickets online through Eventbrite.

Please feel free to send this link through to any others that you know may be interested in the competition. Friends, family and clients are all welcome to join, but please ensure that everyone is registered.

Book those charters now and come and enjoy a fun, competitive day on the water!

If you have any questions, please get in touch with the Events Team


February
Blenheim Regional Meeting 18 February 10am - 12pm Scenic Hotel, Marlborough
Nelson Regional Meeting 18 February 2pm - 4pm Trailways Hotel
March
REINZ Annual Fishing Tournament 1 March 8am - 5pm Auckland Sailing Club
Thames Bowling Tournament 7 March 9am - 3.30pm Thames Bowling Club
South Island Rural Seminar 26 March TBC TBC
April
Commercial & Industrial Breakfast 10 April 7am - 10am Maritime Room, Auckland
June
NZ Auctioneering Championships - Draw 23 June 5.30pm - 7.30pm REINZ, Auckland
NZ Auctioneering Championships - Heats 24 June 10am - 5pm REINZ, Auckland
NZ Auctioneering Championships - Finals 25 June 10am - 6pm REINZ, Auckland

Classic Statistics Platform turned off this week

In 2 days, the old Classic Statistics Platform will be switched off. The Classic Search function is available in the Enhanced Statistics Platform and works in a very similar way to the Classic Platform.

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A 2-minute video showcasing how to use the Classic Search function in the Enhanced Statistics Platform is now available.

If you need help with the Enhanced Statistics Platform, you can join the live webinars:
- Use Classic Search
- Create Market Reports

Try the Enhanced Platform now!

Auckland City Mission CookOff

Bindi Norwell is taking part in the Auckland City Mission CookOff this March, to help prepare a meal for 200 families in need.

The Auckland City Mission has set a goal for Bindi to raise $10,000 to go towards their ongoing emergency food packages. We would sincerely appreciate any support you can offer by donating here.


Funding of up to $7,000 for women in the real estate and property sector available

Building on the significant developmental momentum achieved in 2018, Women & Leadership Australia is administering a national initiative to support the development of female leaders across NZ’s real estate and property sector.

The campaign is providing women with grants of between $3,000 and $7,000 to enable participation in a range of leadership development programs.

The scholarship funding is provided with the specific intent of providing powerful and effective development opportunities for real estate and property sector women; however the funding is strictly limited and has to be allocated prior to the end of March.

Expressions of Interest
Find out more and register your interest by completing the Expression of Interest form here prior to Friday 15 March.

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.