In The Know
30 October 2019
Click the headings below to read more or visit the Property Management page
Important Reminder: The Real Estate Agents Disciplinary Tribunal will now 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.
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) is 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.
Health & Wellbeing Survey coming soon - Boost your performance in 2020!
Destress, build your resilience and roar into 2020 with your best frame of health yet! REINZ is developing a 6-month health and well-being programme designed to help you perform at your optimal level in 2020.
We need your feedback to help shape up our programme and will be launching a survey in the next few weeks to help us better understand exactly what you want and need.
Case Update: Agent fails to warn purchasers of title issue
The complaint in this case was made by the purchasers and concerned the Licensee who was the listing and selling agent of the property.
What happened?
The complaint centered around a performance bond pursuant to section 108(2)(b) of the Resource Management Act 1991. The purpose of the bond was to ensure that the vendors would comply with the conditions of a land use consent granted by the Council. This meant that the vendors were required to perform work on the property and pay $3,500 as the bond. The Council would then repay the money to the vendors upon completion of the work.
The vendors had completed some if not all of the work but had forgotten about the bond. This meant that the bond had not been released and they had not received payment.
The purchasers alleged that:
- The Licensee did not bring the bond to their attention when they first inspected the property and when they made a successful offer (two-day gap)
- Once the Agreement for Sale and Purchase (Agreement) became unconditional, the Licensee apparently reassured them that the existence of the bond was going to be no issue for them.
Non-disclosure of bond
The bond was on the Certificate of Title when the Licensee first listed the property. The Complaints Assessment Committee (CAC) stated that the Licensee should have familiarised himself with the bond at this point. Given the unusual nature of the bond, this should have put the Licensee on notice and he should have ordered the bond and perused the document.
The CAC noted that had the Licensee reviewed the bond, he would have noted that Clause 7 of the bond stated that if the vendor were to sell the property, they would need to disclose to the purchaser of the existence of the bond and record which party would receive the bond.
The Licensee breached Rule 5.1 (care and diligence) of the Code of Conduct Rules 2012 by failing to explicitly alert the purchasers to the bond.
Reassurance
The CAC could not determine whether the Licensee reassured the purchasers that the bond would cause no issues. The CAC did note however, that determining the entitlement of the bond was a legal issue and that this was outside of the scope of the Licensee’s expertise however, the Licensee should have adopted a cautionary approach.
Rules 5.1 and 6.2 (deal fairly with parties) were arguably breached.
Click here for the full decision here.
Tip:
- If you are unsure about whether something may or may not have a negative effect on a potential purchaser then, you should be cautioning them and state that clarity in that regard can be obtained through legal advice.
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 FACE-TO-FACE TRAINING
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 - LAST CHANCE
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 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
2019 Hawke's Bay Mini Conference
Thursday 28 November, Brookfields Winery, Napier
A Life Unlimited
With special guest speakers; Jane Dougherty and Korrin Barrett.
Ticket sales close Thursday 14 November, unless sold out prior!
Book here
| November | |||
| 2019 REINZ Golf Tournament | 18 November | 12pm - 5pm | St Andrews Golf Course, Hamilton |
| 2019 REINZ AGM | 26 November | 10am - 11.30am | Events on Khyber, REINZ, Auckland |
| 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 |
| 2019 Hawke's Bay Mini Conference | 28 November | 10am - 7pm | Brookfields Winery, Napier, Hawke's Bay |
RentalSmarts Enhancements - Add your brand!
The next round of enhancements has been made to the RentalSmarts platform with the added functionality to produce your reports in your own agency colours and add your company logo.
Change the report's banner and font colours by simply entering the RGB colour code for each. Plus, upload your logo during the report building phase to further personalise your reports.
For help, email Johanna at jminondo@reinz.co.nz
Try it out now! | Get a free 7 day trial
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: How to attract and retain sales talent
In an industry where your sales team mean the difference between success and failure and talent is so highly fought for, attracting and retaining salespeople is a constant challenge.
Buying with the intent of capital gain
"The point at which an investor sells, tends to differ. For some it's a strategy of 'buy and hold' and they might not sell the property until many years later and for others it's about 'buy and flip' and with the number of renovation reality programmes we've seen over the past few years this method has increased in popularity in the last 10 years," 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.
