Estate agents have been accused of "flipping" properties and swearing at clients in tense negotiations in complaints made to a new authority.
The Real Estate Agents Authority, created in November, is already dealing with 14 complaints, some of which are levelled against senior industry officials who are agency licensees or
bosses.
Some estate agents are alleged to have sworn at clients over tense sales negotiations.
But others are facing far more serious allegations involving millions of dollars, accused of "flipping" properties - a process of selling properties cheaply to an associate, who then onsells the property at a much higher price. Some previous flipping cases have resulted in an agent receiving big profits or kickbacks for agreeing to collude in the illegal behaviour.
Most complaints are against Auckland agents but a spokesman said this was simply because more houses were sold there annually.
The new authority refers grievances to a three-member complaints assessment committee which hears both sides before deciding the next step, which could include referring the case to the more powerful independent Real Estate Agents Disciplinary Tribunal, which can suspend or ban agents or order a licensee to pay compensation of up to $100,000.
The committee can censure the licensee of an agent's firm, demand an apology, require further training or education, order a licensee to reduce, cancel or refund fees or impose big fines. Agents can also be ordered to pay the costs of major complaint investigations. They say the public will ultimately suffer because their fees will have to rise.
Agents found guilty of illegal behaviour now face fines of thousands of dollars, a big change from the old system where they faced penalties of a meagre $750 maximum unless the Real Estate Institute took the rare step of bringing an offending agent before the now-defunct Real Estate Agents' Licensing Authority, which could ban the agent.
The authority said three special complaints assessment committees had met and referred the 14 complaints to investigation committees.
NEW BROOM
The new system means:
* Consumers have more rights.
* Agents can be fined $10,000.
* Agencies can be fined $20,000.
* Ongoing agent training mandatory.
* New register of agents set up.
* It lists agents who offend.
* More at www.reaa.govt.nz
