The Unconditional Blog

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11

Real Estate Agents Bill passes into law

Posted on: September 4th, 2008 | Filed in Real Estate Industry

A significant milestone was reached tonight as the government delivered on its promise to protect New Zealander’s who are buying and selling their property.

The previous Act dates back to 1976 and there has long been calls from within the industry and outside to repeal the Act and establish a new Act reflective of the times

Full details have been posted on the Government website.

Article Discussion

  1. Jared says:

    I think this is definately a step in the right direction without going too far.

    Do you think this will affect many agents? if so, how?

  2. Jared,

    I could make comment, but I think it would be of far greater value for agents reading this to make their views known.

  3. Deon Swiggs deon says:

    Alistair,

    I haven’t been working in this industry very long but I have done a huge amount of studying and reading about what has gone on previous. I don’t fully understand whats going on with this bill. And I don’t think that it is going to cause a great deal of changes to me in the way i go about business.

    But what some of the agents I have spoken to about this are very concerned by how the independent body is going to be run and how it will be funded. Agencies may have to pay a fee which some are worried may be substantial and then this cost will most likely be passed tot he consultants..

    Then when you think about the breakdown of how much agents are actually paid and in your last post Sharon mentioned this in a bit of detail. So on top of all the other outgoings there could be another substantial one. This may be a bit much for some agent to be able to take. Its sad really.

    But in terms of fairness to the consumer it should make things easier for them to complain!

  4. Rodney Dunn says:

    My advice, increase your level of professional indemnity cover as you will need it. Also get to know a good litigation lawyer.

    Yes, this means you … being professional, ethical and honest will mean zilch. Really … think about it, look at what happening within our courts today. You will need to prove your innocence.

    Sell a house today for $500000 and if it can be seen that in six months time its worth $550000 who are they going to call?

    Yes, right first time … good guess. You’re so smart you could sell real estate, please check with Clayton before proceeding further.

    Don’t get me wrong, something needed to be done but per usual the “holier than thou” guardians of the average vendor on the street have yet again “swallowed the elephant and choked on the gnat”. Do they know about Blue Chip or what happening with the finance companies?

    In the current political climate I find this all rather rich. You could say it’s the hypocritical political pot calling the real estate kettle black.

    To make matters worse they talk of integrity, honesty, fairness, transparency, the list goes own …

    Spare me!

  5. Max Percy says:

    Wonderful news that the Act has now gone through, for several reasons.
    Complaints be them genuine, imaginery or trivial are now taken away from the jurisdiction of the REINZ and who now can no longer be labeled by the public and politicians, fair Go and consumer groups of being lenient and worse on their “members. Secondly it will free up a lot of time for our Regional offices and members that were handling complaints to focus their time on other equally important issues that will lift our profile and be of real benefit to our members. Thirdly at last an Act that has some real teeth and the means to disciplin wayward and unethical,unsavoury people involved in the selling of real estate. Old boys network or suggestion of, depending which camp you come from, will cease to exist.
    Greater public protection and tranparency.
    The only ones that need to fear from this Act within our industry are the minority that bring it into disrepute and are of dubious character and up to now have managed to get away with it. I now put such people on notice. I have waited a long time to publically expose you and within 14 months I will be free to do so. Start packing your bags!

  6. Jared says:

    Well put Max.

    This is my opinion exactly yet could not put it into words. Brilliant.

  7. Some valuable insight and perspective – my thanks to those contributors

  8. Richard says:

    What irritated me the most about REINZ’s response to the bill was how they kept trotting out the line that the bill didn’t go far enough but for virtually every matter affecting REINZ or agents they want the bill to do less. The only bit where they appear to want the bill to go further was extending it to property managers – a profession whose conduct hasn’t earned the same public scorn as agents.

  9. Paul says:

    Firstly it is suspect that an industry can provide its own moral guidelines (i.e. REINZ setting the rules for the people who pay it to exist), but secondly the timing is interesting. At a time like this when elections are coming up soon and suddenly the government pops this, when its apparently been sitting with this on its desk for a couple of years now. Timing is everything.

    Some $70 to REALB for the License to operate and another mandatory $530-odd to REINZ for …………..?

    If that $530-odd is dropped, and the license is raised to $200 I think there’ll be more than enough to fund the new committee.

  10. Paul

    I think it is important to establish a distinction between “moral guidelines” as in code of ethics which REINZ have always had, as do many industry bodies and “rules” which refer to the 1976 Real Estate Agents Act for which REINZ has up until the new bill responsibility for managing complaints in that regard. The new authority is I perceive it will provide a welcome relief allowing the REINZ to focus on the services to members of the industry.

    As to the timing. The bill has been moving at a reasonable pace over the past 12 months through the necessary layers of democratic process, I don’t think you would find any supporters or detractors who would have reason to complain about timing or process.

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