Professional standards

The Real Estate Agents Act 2008​ (“the Act”) provides for the regulation of the real estate industry.

One of the ways the Act achieves its twin purpose of consumer protection and the promotion of public confidence in the performance of real estate agency work, is by “raising industry standards”Sections 3(1) and 2(b) of the Act.​​

REAA’s statutory functions include setting professional standards

Standards​​​ or guidelines are not enforceable rules, but are an important tool to maintain or raise standards to:
  • provide guidance to the sector so it can identify a benchmark for performance or behaviour
  • provide certainty on what the regulator expects from the sector in terms of acceptable practice
  • in some instances, enable organisations to adapt the general principles and guidelines in a way that is fit-for-purpose for the organisation, recognising that one size does not necessarily fit all
  • assist the regulated sector where legislative or regulatory provisions are unclear
  • assist those who wish to comply to meet acceptable standards
  • lay a better foundation for enforcement action in cases of non-compliance.
REAA is introducing professional standards as a proactive form of regulatory intervention. The objective is to provide a benchmark for best practice to inform compliance advice, Complaints Assessment Committee and Real Estate Agents Disciplinary Tribunal decision-making, agency policies and procedures and consumer expectations.

In the absence of widely accepted industry standards of best practice, disciplinary decisions have tended toward maintaining minimum standards rather than raising standards.

The REAA professional standards, which REAA will develop over time, will change that dynamic.

Supervision Standard

REAA's first professional standard is a Supervision Standard​ (1 July 2017) which provides guidance and benchmarking for best practice in the supervision of salespersons. 

Download the Supervision Standard (.pdf101KB) (Appendix A)

A report on the process of developing this standard, including the submissions made during two rounds of consultation are included below.

Download Appendix B (.pdf1889KB)
Download Appendix C (.pdf781KB)

Supervision Training 

For supervision to be effective it must be tailored to the needs of the individual. For that reason REAA has not provided a standard template for supervision. We have, however included a range of questions designed to support the development of supervision plans for your agency, these include:
  • Do employment contracts include the details of the supervising agent or branch manager? Are these reviewed and updated as situations change?
  • Do you understand the level of knowledge and the strengths and weaknesses of the people you supervise? Is your supervision plan appropriate with their level of knowledge?
  • Do you have more stringent supervision for licensees new to the industry or to your organisation?
  • Does your supervision plan differ for staff working remotely?
  • Do you review every sale and purchase / lease agreement presented by licensees you supervise?
  • Is the work of the licensees you supervise randomly reviewed and recorded? 
  • Do the people you supervise have a training and development plan? Are the outcomes of these plans recorded in writing? 
REAA have developed a two-hour supervision training programme aimed at agents and branch managers, this training programme can count towards non-verifiable Continuing Education. One of the mandatory topics for all licensees Continuing Education in 2018 will be on Supervision Standards. Check out approved providers of Supervision training

The Supervision Standard is the first Standard released by REAA, with another following in 2018. For further information and support; contact the REAA licensing team on 0800 367 7322.