Books spell out rules for real estate agents

The Real Estate Institute has produced two new books on the laws and regulations which govern its business, to remind its 17,000 agents of their duties to the public.

And it wants tougher penalties for those that break those rules.

The first book, Law for Real Estate Professionals in New Zealand, describes six acts of Parliament and sets of regulations introduced since 1976.

The second book, The REINZ Real Estate Legislation Guide, is a plain language text on legal, compliance and ethical issues.

Both were produced in conjunction with legal publishers Brookers.

As part of its industry-wide crackdown against breaches of the acts and regulations, the institute this week began promoting the books to remind real estate agents of their role and obligations.

It wants to make sure agents are aware of the six separate documents and various other regulations which govern how they behave.

The institute wants harsher penalties for agents who break the law. It says fine should increase from the current $750 to between $10,000 and $30,000, depending on the seriousness of offences.

This month, industry officials will meet Associate Justice Minister Clayton Cosgrove to discuss how it disciplines its agents and why fines should be increased.

The Commerce Commission has warned agents against tricking house buyers by advertising false low prices.

New REINZ president Murray Cleland stepped into the role last month and within a week, joined chief executive Christine Le Cren in revealing nine cases the organisation was taking to the Real Estate Agents Licensing Board.

The cases involve alleged breaches by agents of rules and laws. Some have been heard and agents have lost their right to operate.

Others are still pending, and one agent who has been struck off is understood to be lodging a High Court appeal against the board's decision.

Cleland has spoken out against what he says are the few agents who spoil the good name of the majority.

He said combining all the rules and regulations into the books would benefit agents and salespeople.

"We have a lot of legislation covering our industry which everyone in it must know and understand," he said. "Both for public protection and ethical reasons, these books are a big step towards ensuring that all our people are up with the play legally, and will help us in our drive to continue to lift standards."

Cosgrove said he wanted to discuss why the institute did not impose harsher penalties in a case involving agents who worked at Bayleys Napier.

He said last month he was surprised and disturbed by the institute's decision not to take further action, although the institute has said it can't take the case to the licensing board because no money was lost.

The fine print

Law for Real Estate Professionals in New Zealand contains:

Real Estate Agents Act 1976

Real Estate Agents Regulations 1977

Real Estate Agents Audit Regulations 1977

Rules of the Real Estate Institute

Fair Trading Act 1986

Residential Tenancies Act 1986.

The REINZ Real Estate Legislation Guide

A plain language text on legal, compliance and ethical issues