Member log in

Real estate code of conduct tweaked after three years

The Real Estate Agents Authority is tightening up its code of conduct for real estate agents.

From April 8 next year, the code will require agents to explain to clients when an agency agreement ends; recommend to all parties that they get legal advice before signing agency or sale and purchase agreements and explain to a prospective client that how they choose to sell their property can impact on the benefits the agent receives.

And a new rule is designed to help protect sellers from the risk of paying two commissions and new rules for buyers’ agents.

Amendments include changing the requirements for disclosure of defects to have a more consistent test on whether agents should know about a hidden or underlying defect
clarifying the need for evidence or expert advice when seeking confirmation from a client that there are no hidden or underlying defects; and ensuring agencies not only have in-house complaints procedures but that these are kept up to date. 
 

Real Estate Agents Authority chief executive Kevin Lampen-Smith said the current code of conduct was working well. “However, after three years, it is time for it to be updated so that it continues to protect buyers and sellers and improve standards in the real estate industry.”

The Professional Conduct and Client Care Practice Rules (code of conduct) set the minimum standards required of agents and are used as a reference point for discipline. They govern 12,500 real estate agents.  “The new code has been developed in consultation with the industry, consumers and the wider public,” Mr Lampen-Smith said.

 “These are positive changes for both the industry and consumers. The new code of conduct, along with continuing education, helps ensure a professional industry and informed buyers and sellers. We are excited to be taking this next step in improving industry standards.”

More information about the new Code of Conduct and what has changed can be found on at www.reaa.govt.nz/page/new-code-conduct-2012/new-code-conduct-2012

More by Deborah LaHatte for NBR NZ Property Investor

Comments and questions
2

Commission salespeople being railroaded by fat cat public servants.Next stop has to be all Real Estate Salespeople have to be made paid Public servant employees with all sick and holiday benefits as well as Govt Super .If it is good enough for the guy with the double barreled name ,why not the Real Estate Salespeople.Seems jackboots are still alive and well in NZ .My perception of the Real estate industry ,is it is being over governed to the point of ad nauseum. Cant think of any other unpaid Profession in NZ that has has so much blow torching in the last few years.

New Rule 10.5 is 'Before an agency agreement is signed, you (the agent) must explain to the prospective client (the vendor) that how they chose to sell their property can impact on the benefits you (the agent) receive." Can someone tell me what the hell does that mean?