Having come to the decision that you’re going to sell your property, the next step is to either list your property with a Licensed Real Estate Agent, or if you’ve the time and resources take on the Agent’s role yourself and try to sell privately.
When listing with an Agent, the Real Estate Agents Act Professional Conduct and Client Care Rules (2009) clearly outlines the minimum standard of conduct to which Agents must adhere prior, during and following the listing day. While it appears to many sellers as an enormous amount of paperwork, it’s done in the interests first and foremost of the consumer.
The following is a brief outline of what the Agent has to comply with in order to list any land or business:
- The Agent will meet with the Client at the property in order to conduct the initial stages of an appraisal which includes recording all relevant details about the property
- Research the local market and establish a likely selling range
- Provide the Client with the completed written appraisal which realistically reflects current market conditions, and is supported by comparable information on sales of similar land in similar locations
- Prior to inviting the Client to sign the Agency Agreement, the Agent must explain to the prospective Client in writing;
- The conditions under which commission must be paid, how it’s calculated, including an estimated cost (this is an actual dollar amount) of commission payable by the client which will be based on the previously mentioned appraisal
- How the Agent proposes to market the property, including any additional expenses that will be incurred on behalf of the Client. The Client isn’t obliged to agree to such additional expenses
- Details and disclosure of any discounts, rebates and commissions which the Agent may receive
- Explain to the Client the Agent’s in-house procedures for dealing with complaints and disputes as well as making them aware of the REAA’s complaints process and how to access it
- Explain that if they choose, the Client can access further information on Agency agreements and contractual documents from the Real Estate Agents Authority (REAA).
- The Agent must also ensure that the Client is aware that they can, and may need to seek legal, technical, or other advice and information and allow the Client time to do so prior to signing an Agency Agreement
If it’s a residential property, there are some further compliance conditions:
- The Agent is required to provide the client with an approved guide (New Zealand Residential Property Agency Agreements Guide) before an agency agreement is signed
- The Agent is required to explain to the Client that they have the right to cancel a Sole Agency Agreement by 5 pm on the next working day
- Furthermore, that a Sole Agency Agreement in respect of residential property can be cancelled 90 days after the Agreement is signed
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