Agent censured for 'unethical' behaviour

A Tauranga real estate salesperson ordered to apologise for "unethical" behaviour is among 109 cases of unsatisfactory conduct identified by the Real Estate Agents Authority (REAA) in the past two years.

Agent Jason de Montalk was ordered by the Complaints Assessment Committee (CAC) - an independent group administered through REAA - to write a written apology for his "unethical" behaviour relating to a listing he was dealing with while in the process of changing employers.

Mr de Montalk, was a real estate salesperson for L J Hooker of Papamoa when he listed "Miss G's" house for sale, but "Miss G" alleged that a week later he asked her to re-sign the contract as he had since joined Re/Max Property Tauranga. He claimed he had an agreement with Re/Max to pay L J Hooker their normal share of the fee if the property sold during the original agency term.

However L J Hooker was not aware of the listing.

Mr de Montalk, who appealed the decision, did not want to comment when contacted by the Bay of Plenty Times this week.

And linked real estate companies Eves Realty Ltd (Tauranga) and Success Realty Ltd (Tauranga) were fined $1000 each and ordered to publish an apology for and correction of an advertising campaign that falsely represented their market statistics.

The advertising campaign, in print media and on the radio, said the parent company had a 44 per cent market share of properties sold in specified area in August 2010, but the complainant said it was in fact 34.4 per cent.

Unsatisfactory conduct punishments imposed by the CAC range from agents being censured to being fined up to $10,000.

But if the complaint is serious enough to lay charges, the CAC refers the case to the Real Estate Agents Disciplinary Tribunal which can then find the agent guilty of misconduct and can cancel or suspend a licence, order termination of employment or order agents to pay fines of up to $15,000.

In the past two years, nine agents have been penalised for misconduct - including one this week in which high-flying Auckland real estate agent Margaret Adams was fined $10,000 plus $5000 costs and had her licence suspended for six months after she listed and sold a house without disclosing she had helped buy it.

Since findings started being published on March 22, 2010, three agents from around the country have been either censured or fined twice for unsatisfactory conduct. Another has had three unsatisfactory conduct complaints laid against her.

REAA acting chief executive Dean Winter said the penalties which the CAC could impose acted as a deterrent to realtors repeatedly offending.

"The penalties that can be imposed by independent CACs are substantial and significantly higher than what was available under the old act," he said.

Before the REAA came into effect in November of 2009 - as the result of the Real Estate Agents Act 2008 - the Real Estate Institute of New Zealand performed a regulatory function.

The maximum fine it could impose on a realtor was $750.

But Mr Winter said the REAA had no information on the levels of complaints before it came into effect and could not comment on trends.

"It will be some time before it is possible to identify complaint trends since the Act came into effect." with Hana Garrett-Walker of APNZ