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REAL ESTATE
AGENTS ACT 2008
Are You a Real Estate Agent?
Phillip Merfield
Background – Failings of
1976 Act
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• Major concerns about how the industry dealt with
complaints and discipline
• Main Issues:
- more independent oversight of entry standards,
conduct and complaints handling;
- empower consumers so that they can make
complaints;
- lack of independence and transparency in complaints
process and penalties inadequate;
- empower consumers as buyers and sellers
Purpose – Section 3
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• “… promote and protect the interests of consumers in
respect of transactions that relate to real estate and to
promote public confidence in the performance of real
estate agency work.”
Key Changes
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• All agents must be licensed
• Creation of an independent Real Estate Agents Authority
• Complaints assessment committees and Real Estate
Agents Disciplinary Tribunal
• Responsibilities on agent to better inform buyers and
sellers
• Membership of the Real Estate Institute of New Zealand
no longer necessary
Who was a real estate agent –
1976 Act (section 3)
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• Those who acted or held themselves out as ready to act
as an agent
Who is now a real estate
agent – 2008 Act (section 6)
• Those who carry out real estate agency work
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What is real estate agency
work?
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• Any work or services provided
• In trade – CCO’s working for other CCO’s or the council
• On behalf of another person
• For the purpose of bringing about a transaction
“Transaction”
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• Limited dealings in freehold and leasehold estates and
interests
• Note exclusion of residential tenancies and property
management
Difficulties with “transaction”:
• Dealing with easements and profits a prendre
• PWA’s acquisitions or disposals – are they “transactions”?
Exclusions from Real Estate
Agency work
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• General advice
• Publications/Advertisements
• Lending money, investment advice and conveyancing
services
• Home Buyers case
• Famularo case
preparatory work
deal itself
Summary to date
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• The new Act is designed to improve accountability,
openness and transparency
• Whether or not someone as regarded as a real estate
agent depends on what they do
• If you carry out real estate agency work or services then
you are an agent unless that work or service falls within
one of the exclusions
• Fundamental to real estate agency work is the concept
of transaction. However what is and what is not a
transaction is not always clear
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• If you are involved in a transaction in a sense of being an
active intermediary between the seller and the buyer
then you are likely to be an agent.
Exemptions
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• Lawyers and conveyancers – section 7
• Licensed auctioneers – section 8
• Exempted by regulation – section 9
- exemption is by the relevant Minister
- Minister needs to be satisfied that:
(i) no material consumer benefit gained by requiring
the person to be licensed;
(ii) sufficient processes to ensure competence and
ethical conduct; and
(iii) has consulted with relevant organisations.