The Real Estate Authority (REA) welcomes the passage of the the Regulatory Systems (Occupational Regulation) Amendment Bill, which brings amendments to the Real Estate Agents Act 2008 (the Act), through the third reading.
REA Chief Executive, Belinda Moffat says the amendments will help to enhance the regulatory regime for licensed real estate professionals overseen by REA, and support REA’s role as the conduct regulator of the real estate profession and consumer protection agency.
“It strengthens REA’s ability to protect consumers, whilst also improving the efficiency of the system we oversee and relieving some of the constraints and compliance burdens, including by making the regulatory scope proportionate to the risk.”
“One of the amendments will enable REA to require a person to provide documents to REA where we have reasonable grounds to believe that someone is unlicensed and carrying out real estate agency work or has contravened the Act, or associated regulations or practice rules. This will assist REA to better assess consumer complaints and investigate unlicensed trading concerns”, Ms Moffat says.
Another amendment removes the mandatory five-year standdown if a licensee fails to complete their annual Continuing Professional Development (CPD) requirements.
The definition of unsatisfactory conduct has been amended to enable Complaints Assessment Committees to also consider conduct that is not connected to a specific transaction but which falls short of the standard a reasonable member of the public is entitled to expect of a licensee, or which agents of good standing would reasonably regard as being unacceptable conduct of a licensee.
Other changes to the Act include changing REA’s statutory name to Real Estate Authority (formerly the Real Estate Agents Authority). The Bill allows for an implementation period with nearly all changes coming into force eight months after Royal Assent. The removal of the requirement for the REA Board Chair to be a lawyer takes effect upon Royal Assent.
Chief Executive Belinda Moffat says, we are pleased to see the passage of the Bill. The changes reflect advice that REA provided to the Ministry of Justice on ways to improve the system in 2022.”
“We look forward to working with the Ministry of Justice and the real estate sector to ensure the smooth implementation of these changes over the coming months”, Ms Moffat says.
Notes
A short summary of Regulatory Systems (Occupational Regulation) Amendment Bill (RSAB) changes affecting the Real Estate Agents Act (2008) and REA are set out below. Further detail will be provided on REA’s website in due course. For full details please see the Bill which is available on the Parliament website here: Regulatory Systems (Occupational Regulation) Amendment Bill
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RSAB clause(s) |
Change summary |
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17 |
Administrative change – updates the statutory name of REA from Real Estate Agents Authority to Real Estate Authority |
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18 |
REA Board Chair no longer required to be lawyer of 7+ years’ experience. Enables candidates with a broad range professional experience and expertise to be considered by the Minister when appointing the REA Chair. |
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19 |
New power for REA to request documents where REA has reasonable grounds to believe a licensee has contravened the Act, Regulations or Practice Rules or a person is carrying out real estate agency work and is unlicensed. |
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20 |
Allows some exemptions to prescribed qualification requirements for licence applicants in certain circumstances |
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20, 21 |
Removes requirement for REA Registrar to stand-down an individual from holding a real estate licence for five years for failure to complete CPD and non-payment of fees. Cancellation is still required, but individuals will be able to re-apply if they complete their CPD requirements. Moderates regulatory consequence and provides avenue for licence reinstatement. |
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24 |
A real estate licence may be renewed within 12 months of expiry, rather than requiring a full re-application process. Reduces administrative burden for REA and licensees. |
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25 |
Ability for REA to cancel a licence at the point when someone becomes a person who would be prohibited from holding a licence under the Act. Previously this could only occur at the date of annual renewal. Enables REA to respond in a timely way to reduce the risk to consumers. |
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26 |
Provides improvements to granting of a temporary licence. |
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27 |
Expands the types of behaviour that could be considered “unsatisfactory conduct”, including conduct that agents of good standing would reasonably regard as being unacceptable. Enables Complaints Assessment Committees to consider poor conduct that is linked to the licensees’s professional role beyond action directly connected to a specific transaction. This enables the Complaints and Discipline process to be more responsive to poor conduct concerns, and conduct that affects consumer confidence in the profession. |
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28 |
New offence for a party to a complaint investigation failing to provide, without reasonable excuse, a document to REA in accordance with notice under s 24A. Strengthens REA’s ability to gather information and evidence. |
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22, 23, 24, 26(1), 30 and 31 |
Administrative change enabling certain documents to be in approved form issued by REA:
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About REA
The Real Estate Authority (REA) is the independent government agency that regulates the conduct of licensed real estate professionals in New Zealand (salespeople, branch managers, agents and agencies). We license people and companies working in real estate, provide oversight of the code of conduct, oversee the complaints and disciplinary process for poor conduct by licensees, provide education and guidance to licensees to assist them to meet their regulatory obligations, and provide information to consumers about the real estate transaction process. REA is governed by a Board. The Chair is Denese Bates KC. REA Chief Executive/Registrar is Belinda Moffat.
People who have concerns about the conduct of a real estate professional can contact the Real Estate Authority (REA) – visit rea.govt.nz or call 0800 367 732. Consumers seeking independent information about buying and selling property can visit REA’s consumer website settled.govt.nz.