Your real estate agent must tell you if they, or someone related to them, wants to make an offer to buy your property or business (section 134 of the Act).
Can a real estate agent or someone related to them make an offer to buy my property?
A real estate agent who is working for you under an agency agreement can offer to buy your property (or business) themselves. However, if the real estate agent, or someone related to them does want to make an offer to buy your property or business, under the Act there are certain things that they must do.
What must the real estate agent do?
Before the sale and purchase agreement is signed, the real estate agent must first:
- Obtain your informed consent by giving you a consent form to sign. This must be the form that is set out in Form 2 of the Duties of Licensees Regulations 2009.
- At the same time, give you a valuation of your property or business.
The valuation must be made by an independent registered valuer, or in the case of a business, be made by an independent chartered accountant.
The valuation is at the real estate agent's expense.
If you decide to sign the consent form before receiving the independent valuation, the real estate agent must:
- indicate a provisional valuation of the property on the consent form, and
- then give you a valuation made by an independent registered valuer or chartered accountant within 14 days of you signing the consent form.
If the independent valuation is greater than the provisional valuation, you can cancel the contract for the sale of your property.
Who is covered by the above requirements?
The Act sets out all of the persons to whom the above requirements relate. If any of the following people want to buy your property or business or have an interest in it, the licensee must obtain your consent and provide a valuation:
(a) an agent, branch manager or salesperson working for you under an Agency Agreement
(b) if the agent is a company, every officer and shareholder of that agency company
(c) a business partner of any of the persons in (a) and (b)
(d) an employee of any of the persons in (a) and (b)
(e) a branch manager or salesperson engaged by an agent
(f) the spouse, civil union partner or de facto partner of any of the persons in (a) or (b)
(g) a child, grandchild, brother, sister, nephew or niece of any of the persons in (a) or (b), or a child, grandchild, brother, sister, nephew or niece of their spouse, civil union partner or de facto partner
(h) any other child who is being, or is to be, cared for on a continuous basis by any of the persons in (a) or (b) or by their spouse, civil union partner or de facto partner
(i) any parent of the persons in (a) or (b) or of their spouse, civil union partner or de facto partner
(j) any entity that has an interest in any of the persons in (a) or (b) or any entity (that is not an entity listed on the New Zealand Stock Exchange) in which any of the person listed in (a) or (b) has an interest.
Conflict of Interest Information Sheet [PDF, 143.65 kb].
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