Real Estate Agents Act 2008 - In Plain English

PRESENTED BY PROPERTY CONVEYANCING SERVICES LTD

To provide you with an overview of the Act and the implications on you under a Regulated Industry. You will now be governed by the Real Estate Agent Authority. who will handle Licensing, complaints and disciplinary action. We encourage you to continue your support of the Real Estate Institute of NZ as they will be a valuable voice in the future in a Representative role even though you are no longer required to be Members. Any breach of the Act will be heard by the Real Estate Agents Disciplinary Tribunal. You must make yourself familiar with your Professional Conduct and Client care Rules 2009.

The Act has been designed to be fair to both Consumers and those that work in the Industry. You need to make yourselves familiar with the following:  Real Estate Agents (Duties of Licensees) Regulations 2009  Real Estate Agents (Licensing) Regulations 2009  Real Estate Agents (Audit) Regulations 2009  Real Estate Agents (Complaints & Discipline) Regulations 2009  Real Estate Agents Act (Professional Conduct & Client Care) Rules 2009.

 Lawyers and Conveyancers.  Licensed Auctioneers.  Any persons exempted by Regulation under Section 156 (1)a. These Exemptions will be case by case.

 Real Estate Agents License – Enables Licensee to carry out real estate work on his/her own account.  Branch Manager – Enables Branch Managers to carry out real estate work for or on behalf of an agent.  Salesperson – Enables a salesperson to be supervised by a Real Estate Agent or Branch Manager.

 You are over the age of 18.  You are not prohibited under Section 37 of the Act.  You are a ﬁt and proper person.  You have the prescribed qualiﬁcations.  Have 3 years industry experience.

For those who currently hold Real Estate Agents Licenses or Salesperson’s Certiﬁcates will be deemed to be licensed under the Act and can continue to operate until the 31st March 2010. But before this date you must make Application to the Registration Authority for renewal of your Application to be licensed for the coming year. New Licenses will be valid for 1 year.

 Application for a new Real Estate Agents License $95.00 plus GST.  Application to renew deemed Real Estate Agents License $95.00 plus GST.  Annual operation Levy raised $366.00 plus GST.  Annual Disciplinary Levy raised $33.00 plus GST.  Payable upon renewal of License.

 The purpose of the Public Register is to enable the public to make informed decisions when choosing a Real Estate Agent or Salesperson.  This will cover who is Licensed.  Contact details.  Licensing history.  Any disciplinary history in the last 3 years.  Full name of Licensee.  Business address.

 Class of License.  The date the Licensee was registered on the Register.  Expiry and or renewal of License.  Continuing education required of Licensee.

The Act defines “unsatisfactory conduct” and more serious “misconduct” The Complaints Assessment Committee will have 3 members: One will be drawn from the Authority, and one Lawyer. This committee will:  Investigate complaints.  Make decisions to take no action if it is unjustified or inconsequential.  On it’s own initiative, investigate allegations against a Licensee.  Promote resolution of complaints through negotiations, conciliation or mediation.  Make a final decision regarding a complaint.  Lay and prosecute charges of alleged misconduct before the Disciplinary Tribunal.

Business Information  You must display in a prominent place;  The name of the Agent.  You are Licensed.  If the business is not carried on in your name, the entity in which the business is carried on.  This information must be displayed at every shop or office.  Your website.  Notices, advertisements or material published by you or on your behalf.  On all letters, accounts, contractual documentation and any other documents sent.

Deposits – All funds received in relation to the dealing must be deposited into your trust account and only released to someone who is entitled to receive it. The deposit can only be released early if all parties have authorised in writing. Furthermore the deposit must be held for a Statutory 10 working days.

 Prior to receiving any commission or any expenses for work in relation to Agency work unless:  There is a signed Agency Agreement.  The Agency Agreement is signed by the Client and you.  A copy of the Agency Agreement has been signed and given to the client within 48 hrs after it has been signed.  You will be required to disclose fees, rebate and commissions you will receive, and the estimated amount.  If the property is residential, before the client signs the Agency Agreement, you must give the client a copy the New Zealand Residential Property Agency Agreements Guide and sign confirmation they have received, read, and understood the Guide.  Failure to do so could result in a Complaint or furthermore an Agreement not proceeding.

You can not acquire the property or carry out Agency work unless you have the informed Consent of the Client.  This is also applicable if another person related to you wishes to acquire property or carry out Agency work.  The Act further defines a related person;  Partner of Licensee.  Employee of Licensee.  Branch Manager or Salesperson engaged by Licensee.  Child, Grandchild, Brother, Sister, Nephew, Niece or any other child cared for by the Licensee.  Spouse, De facto or Civil union relationship.  Parents.  Any entity that has an interest in the Licensee or in which the Licensee has an interest (and that entity is not listed on the NZ Stock Exchange)

If the Client consents you must utilise the prescribed forms.  You must provide the client with a Valuation from an independent Registered Valuer.  More importantly you must give the Valuation to the Client before seeking consent, or if the client agrees within 14 days after obtaining consent.  If this is not done the client can cancel the Agreement and the Client will not be required to pay commission.

 Prior to any client signing an Agreement for Sale and Purchase you must give them a copy of the New Zealand Residential Property Sale and Purchase Agreements guide.  The client must sign that they have received, read and understood the Guide.  Failure not to provide the Guide will result in Agreements being cancelled.

In closing it is your responsibility to make your self familiar with the changes which now affect your Industry. We highly recommend you get familiar with the “Bible” Real Estate Agents Act (Professional Conduct and Client Care) Rules 2009. If you require any assistance to get your head around the Act do not hesitate to contact us. 0800 2 87878 www.PropertyConveyancingServices.com or www.TeamPCS.co.nz

Real Estate Agents Act 2008 - In Plain English

by networxnz on Nov 19, 2009

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Real Estate Agents Act 2008 - In Plain English — Presentation Transcript