REA outlines agent requirements around meth disclosure obligations
Following the release of the Gluckman Report on methamphetamine last week the REA has now outlined its position for agents around meth disclosure obligations. The REA’s advice is that:
- Methamphetamine contamination of 15 micrograms per 100cm2 or above is considered a property defect that must be disclosed to potential buyers. (Rule 10.7 of the Professional Conduct and Client Care Rules (2012)
- You do not have to disclose test results below 15 micrograms per 100cm2 unless specifically asked by a prospective buyer or where a prospective buyer has clearly shown an interest in methamphetamine contamination. (Rule 6.4 of the Professional Conduct and Client Care Rules (2012)
- Disclosure is not required if the property has been successfully remediated back to below 15 micrograms per 100cm2 in a property where methamphetamine has only been used, or to below 1.5 micrograms per 100cm2 where methamphetamine production using highly toxic chemicals was identified
- As with any disclosure, you should discuss the issue with your vendor before making any disclosures.
If a purchaser wishes to insert a meth testing clause in an agreement for sale and purchase, until local councils confirm whether or not they are adopting the increased contamination levels in the Gluckman report, we recommend you discuss with the purchaser the level of meth they would like referenced in the clause (eg. 1.5 Mcg or 15 mcg) as each purchaser will have a personal view on what they deem to be an acceptable level of meth.
For more information you can visit the REA’s website here.
REINZ will be updating its guidelines to be in line with this new information shortly.
Please note that an article published in the Winter 2018 edition of the REINZ magazine featured a case on disclosure of prior meth contamination. Licensees should note that the position taken by the CAC may be different now, in light of the latest advice from the REA.
We are delighted to announce that Samantha Hayes will be our MC at this year’s REINZ Awards For Excellence Gala Dinner.
We invite you to join us at the Gala Dinner where we will announce the winners for 2018. For more information head to our Awards Website.
Last chance to register
Rotorua Verifiable Training
Wednesday 20 and Thursday 21 June.
Registration deadline Monday 11 June - a $50 per person late fee will apply after this date.
2018 Compliance Review Workshop: Staying Safe with the REA.
Wednesday 13 June
Come along and discuss some case studies, ask questions and ensure you know what needs to be done to stay safe with the REA. Presented by Graham Crews with special guest: Kevin Lampen-Smith, CEO of the REA. Book here.
Verifiable Training
Timaru Verifiable Training
Wednesday 27 and Thursday 28 June.
Registration deadline Monday 18 June - a $50 per person late fee will apply after this date.
Wellington Verifiable Training
Wednesday 4 and Thursday 5 July.
Registration deadline Monday 25 June - a $50 per person late fee will apply after this date.
Non-Verifiable Training
Facebook and LinkedIn workshop
Friday 22 June.
This 2-hour practical workshop will show you how to use Facebook and Instagram effectively to reach buyers and sellers in the market and grow your personal brand. Book here
One Day Management Workshop
Thursday 28 June.
Interactive, informative, includes materials, a book and networking drinks. This workshop is presented by Bruce Cotterill, a five-time CEO and the creator of ‘The 7 Principles of Profit’. ONLY 6 SPACES LEFT. Book here.
| Region | Dates | Location | |
|---|---|---|---|
| June | |||
| 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 Seminars
North Island Rural Seminar - 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
Upcoming REINZ Regional Meeting
Manawatu and Wanganui Regional Meeting
Wednesday 20 June, 4pm – 6pm
Come and join Mayor Grant Smith, Dame Rosanne Meo, Bindi Norwell and Richard Warner from Property Press as they share their insights into what is happening in the region.
Download the poster
Wellington Regional Meeting
Wednesday 4 July, 5pm – 7pm
Join Dame Rosanne Meo in her final year as Chairman and Mark Coffey, Regional Director to 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.
Download the poster
Earlybird Conference Tickets available
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.
Download the poster
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.
Download the poster
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!
2018 REINZ Awards for Excellence
Tuesday 28 August, 6pm - 10pm
Entries are now open.
Download the invitation or the 5 Ticket discount REINZ Awards for Excellence or the 10 Ticket discount REINZ Awards for Excellence
| 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 |
| REINZ Awards Evening | 28 August | 6pm - 10pm | Cordis, 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 |
Case Update: Risks of delaying maintenance works and not remedying dampness
Facts: The tenants rented out a property which turned out to have a range of issues.
Almost immediately after moving in, the tenants raised concerns about leaks in two bedrooms. This took the property manager three months to fix. By then, other maintenance issues and a growing problem with mould and dampness had arisen. The property manager’s delay in getting the matters repaired or remediated had compounded problems. For example, straightforward plumbing matters took up to 6 months to fix, which resulted in excess use of hot water and inconvenience.
The tenants were offered the chance to terminate the fixed-term tenancy with no consequence. They elected to stay at the property by paying an agreed reduced rent.
The property manager had also tried to end the tenancy as they alleged the tenant was running a Porse day care centre at the property.
Decision: The tenants received compensation and exemplary damages for the maintenance matters. The amount awarded was less than what the tenants claimed, after the Tribunal took into account various factors including that the tenants were paying a reduced rent, and some of the impacts suffered were within the tenants’ control to manage.
The Tribunal held both the property manager and the landlord to be liable, which resulted in joint responsibility that they can share between themselves.
The Tribunal dismissed the property manager’s claim that it was entitled to terminate the tenancy because one of the tenants was operating a Porse day care centre at the property. The Residential Tenancies Act requires tenants to use the property principally for residential purposes and the tenant’s actions were held in this case to not have crossed the line. The Tribunal accepted evidence that there were no more than two children dropped in at any time and the house remained principally as the home for the tenants. It was also noted that the local council treated this style of childcare as a permitted “work from home” activity that was not subject to the usual consents required for commercial activities.
Disclaimer: The information in these case summaries is for general informational purposes only and may only discuss some, not all, aspects of a case. It does not constitute legal or other professional advice and does not replace your company’s internal policies and guidelines. Always check your company’s guidelines, policies and information first and seek legal advice if you have any queries.TPPL Bill
REINZ submitted against the proposals in the Tribunal Powers and Procedures Legislation Bill (TPPL Bill) that would allow monetary compensation of up to $100,000 for unsatisfactory conduct. The REA supported the proposal and pushed for CACs to have the power to award compensation.
The Select Committee has now reported back on the TPPL Bill. We are pleased to confirm that:
- CAC’s will not be given the power to award compensation for unsatisfactory conduct – this power will lie with the READT; and
- Only unsatisfactory conduct that is more than minor or technical is to be referred to the READT for compensation.
The full report is here
Preventing CACs from having the power to award compensation for unsatisfactory conduct a is good win for the industry. It is also positive that only serious unsatisfactory conduct claims will be eligible for compensation.
The Bill has yet to have its second reading so it may be a few more months before the Bill becomes law. We will keep you updated as the Bill progresses through Parliament.
PINZ Exemption
The Property Institute of New Zealand (PINZ) applied for a licensing exemption under the Real Estate Agents Act early last year. REINZ strongly opposed this exemption application.
We are pleased to advise that Associate Minister of Justice, Hon William Aupito Sio, today confirmed in writing that PINZ’s exemption application will not be progressed.
Approaching a Vendor who has an existing Sole Agency
Facts: The Complainant’s agency had a sole agency agreement with the vendor in respect of a residential property.
The Complainant alleged the Licensee failed to respect their exclusive listing and directly approached the vendor to inform him of an interested buyer.
It was not disputed that the Licensee had contacted the listing agent with a view to introducing a buyer, and the Complainant’s agency had not agreed to a conjunctional arrangement with the Licensee.
However, the Licensee said he did not directly approach the vendor. Rather, he said the vendor happened to be out in his garden when he passed the property. The Licensee said the vendor had removed the Complainant’s agency’s sign at the time as he was mowing the lawns. The vendor agreed that the agency’s sign was removed at the time the Licensee told him about a prospective buyer.
Decision: The CAC decided to take no further action on the complaint. It found:
- The Licensee was not prevented by the Complainant’s sole agency agreement from making any further inquiry regarding the property.
- The Complainant’s agency was entitled to reject any request to enter into a conjunctional arrangement, as it did.
- The Licensee’s approach to the vendor was not prohibited by the Client Care Rules. As the vendor had removed the Complainant’s agency’s sign at the time, it was reasonable that the Licensee made further inquiries regarding the listing.
- When making such approaches, the CAC expected the Licensee to comply with Rule 9.2 – to not place any prospective client, client and customer under undue or unfair pressure. In this case, the vendor confirmed he had “no problem with the Licensee’s approach”.
Click here for the decision.
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.
Updated REINZ Resource: Residential Land Withholding Tax
Residential land withholding tax (RLWT) is a tax that is payable when an “offshore RLWT person” sells residential property within specified timeframes, unless an exemption applies.
At the end of March this year, the applicable timeframes for RLWT were extended from 2 to 5 years.
Please click here to read the REINZ Information Sheet on RLWT for more information on how it may affect offshore vendors and purchasers.
New Zealand Auctioneering Championships
Please come along and support the 46 Auctioneers in the New Zealand Auctioneering Championships from Sunday 17 June – Tuesday 19 June 2018, to be held at the REINZ Centre of Excellence, Level 2, 155 Khyber Pass Rd, Grafton.
Parking – please use the EMA carpark (entrance off Auburn Street) where there is plenty of parking spaces. The hourly rate is $3.50 and the daily rate is $10.00.
Note the machine only takes a debit/credit card, no cash. Please don’t park on any day in front of the REINZ building on Khyber Pass. This park is monitored by an external party and towing will be enforced.
There is no cost to attend, we look forward to seeing you at this exciting event!
Check out the three-day event schedule here. Any questions please email Holly Adams or call 0800 473 469.
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.
