Frequently Asked Questions

Can decisions of the Complaints Assessment Committee and the Real Estate Agents Disciplinary Tribunal be appealed?

A decision made by a Complaints Assessment Committee on a complaint can be appealed to the Real Estate Agents Disciplinary Tribunal. A decision of the Disciplinary Tribunal can be appealed to the High Court, whose decision is final, apart from questions of law, which can be appealed to the Court of Appeal.

Will changes to the law affect what I pay for real estate services?

Fees will continue to be something that clients should negotiate with their agent.

How can I find out more?

You can find out more on the industry and consumer pages on this website, or by contacting us.

How will the Real Estate Agents Authority benefit consumers?

The independent Real Estate Agents Authority plays a key role in ensuring the quality and professionalism of the industry. It:

  • provides an independent, fair and open complaints and disciplinary process.
  • provides for new responsibilities for real estate agents including information that must be provided to consumers.
  • has issued a Code of Professional Conduct and Client Care. This is a published code that those working in the real estate industry must follow and is a reference point for discipline. 
  • provides consumer information that will help guide you through the property buying and selling process.
  • raises industry standards through industry entry requirements and continuing education.
  • provides a searchable public register of licensees to enable you to make an informed decision when choosing the person to sell your property. You can: 
    • check whether the person you are considering dealing with is licenced
    • find out how to contact them
    • check the history of the person's licence
    • check their recent disciplinary record.

What do the new licensing requirements mean for consumers?

All agents, branch managers and salespersons must be licensed and consumers will have access to information about people working in the industry. There is a public register which shows who has a licence, and records whether a licensee has had any disciplinary action taken against them in the last three years.

What if I have complaint about a property transaction that took place before 17 November 2009?

The terms of the 1976 Act will continue to apply to any contracts or agreements entered into prior to 17 November when the 2008 Act came into effect.

Any complaints or disciplinary proceedings that have been commenced under the 1976 Act before 17 November 2009 will be completed as if the 1976 Act had not been repealed.

If a complaint has been made about an event that occurred before 17 November 2009, but the complaint was not dealt with under the 1976 Act by that time, a Complaints Assessment Committee may consider the complaint. The Real Estate Agents Disciplinary Tribunal may also hear a charge.

In these circumstances, a complaint can only be made about something that could have been the subject of a complaint under the 1976 Act, and the remedies will be restricted to those that would have been available under the 1976 Act.

Why was the law changed?

The previous law dated back to 1976. In 2007 the Government issued a public consultation paper, The Government's Preferred Options for Reform of the Real Estate Agents Act 1976. The report identified a number of issues that needed to be addressed, including:

  • a need for more independent oversight of entry standards, conduct and complaints handling than was provided under the previous self-regulatory system
  • consumers did not have sufficient information about how to make complaints
  • the lack of independence and transparency in the complaints process, and the inadequacy of penalties
  • the need for consumers to get more information to enable them to make informed decisions when buying or selling property.

The Real Estate Agents Act 2008 addresses these concerns and provides a modern regulatory environment for the real estate industry.

What will the new complaints process involve?

One of the main concerns about the 1976 Act was that consumers did not have ready access to an independent complaints and disciplinary process. Under the new Act people will be able to take a complaint about a licensee or a former licensee to the Real Estate Agents Authority, which will refer the complaint to a Complaints Assessment Committee to investigate. This process will be fair and impartial for consumers and for agents, branch managers and salespersons.

A Complaints Assessment Committee can deal with the complaint in several ways, including directing that the parties explore the possibility of resolving the complaint by negotiation, conciliation or mediation. Where a Committee finds that the licensee has engaged in unsatisfactory conduct, it has a range of measures at its disposal to deal with the complaint, such as:

  • reprimanding the agent, branch manager or salesperson;
  • requiring the agent, branch manager or salesperson to do any of the following:
    • make an apology
    • undergo further training
    • refund fees
    • rectify an error
    • pay a fine of up to $10,000 in the case of an individual or $20,000 in the case of a company
    • pay the costs of the inquiry or investigation.

What happens in serious cases?

In serious cases appearing to involve misconduct, a Complaints Assessment Committee can lay a charge with the Real Estate Agents Disciplinary Tribunal.

If the Disciplinary Tribunal determines that the licensee is guilty of misconduct it can impose a more serious range of penalties, including:

  • cancelling or suspending the agent's, branch manager's or salesperson's licence
  • ordering the licensee's employment be terminated and order that no agent employ or engage that person in connection with any real estate agency work
  • requiring the licensee to pay a fine of up to $15,000 for an individual and up to $30,000 if the licensee is a company
  • ordering the licensee to pay compensation to the complainant for any actual loss suffered up to $100,000.

 

Who sits on the Real Estate Agents Authority and the Real Estate Agents Disciplinary Tribunal?

The Real Estate Agents Authority can have up to seven members appointed by the Minister of Justice, with members representing a broad range of interests, including consumer and industry interests. The Chairperson must be a lawyer with not less than seven years legal experience. Two members must be licensees or former licensees.   Click here to find out more information on those appointed to the Authority Board.

Complaints Assessment Committees are appointed by the Authority and must have three members, one of whom must be an Authority Board member. One member must be a lawyer with not less than seven years legal experience.

The Real Estate Agents Disciplinary Tribunal has a Chairperson and up to four other members, who are also appointed by the Minister of Justice. The Chairperson must be a barrister or solicitor with not less than seven years legal experience. One member must be a member of the real estate industry. The Disciplinary Tribunal will be serviced by the Ministry of Justice. Click here to go to the Ministry of Justice website and find out more about the Disciplinary Tribunal.

My Licence has not arrived - what do I do?

Please wait until Monday 23 November before contacting us about this. If your licence has still not arrived by then please email us at info@reaa.govt.nz and we will arrange to get your licence sent to you.

If you held a current real estate agent's licence or a branch manager's or salesperson's certificate of approval before 17 November 2009, you are still licensed under the 2008 Act and can continue to work even if you have not received your licence in the mail. Click here for more information on licencing.

You can print out your record from the public register of licensees and use this a proof that you hold a current licence under the 2008 Act until you receive your licence. Click here to search the public register of licensees.

I am not on the public register of licensees – what do I do?

  • If this does not work or there are too many results, search by your first and last name only – leave the other search fields blank.
  • Searching by the organisation you work for may not return a result. We are aware of this issue and are working on a fix.
  • If you have followed the steps above and still can not find yourself on the register please email us at info@reaa.govt.nz
  • Search only by your last name – leave the other search fields blank.

Click here to search the public register of licensees.

How do I get approved guides to out of town or overseas buyers/sellers?

In this situation, you can refer them to the relevant approved guide information on this website. You must get written acknowledgement from them e.g. an email that they have been provided with this information.

  • Click here for the New Zealand Residential Property Agents Agreements Guide information.
  • Click here for the New Zealand Residential Property Sale and Purchase Agreement Guide information.

Can I get an electronic (PDF) version of the approved guides?

Electronic [PDF] versions of the Residential Property Agents Agreements Guide and the Residential Property Sale and Purchase Agreement Guide are not available.

You must provide printed copies of these guides. The only exception to this is if you have an out of town or overseas buyer or seller. In this situation, you can refer them to the relevant approved guide information on this website. You must get written acknowledgement from them e.g. an email that they have been provided with this information.

  • Click here for the New Zealand Residential Property Agents Agreements Guide information.
  • Click here for the New Zealand Residential Property Sale and Purchase Agreement Guide information.

What changes does the new Act make?

The key changes introduced by the new Act are:

  • agents, branch managers and salespersons must all be licensed individually
  • an independent Real Estate Agents Authority has been established that is responsible for licensing, complaints, disciplinary action in relation to unsatisfactory conduct, industry standards, and providing information for consumers
  • new complaints and disciplinary processes including the appointment of Complaints Assessment Committees by the Real Estate Agents Authority and the establishment of an independent Real Estate Agents Disciplinary Tribunal
  • new responsibilities apply to real estate agents, including duties in relation to the information that must be provided to consumers
  • no longer compulsory for agents to be members of the Real Estate Institute of New Zealand (REINZ).

The new regime applies from Tuesday, 17 November 2009.

Go to the New Zealand Legislation website to read the Act.

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