Real estate code takes effect

The Real Estate Agents Authority's (REAA) amended code of conduct took effect this week and governs the nation's 13,000-odd real estate agents.

The agency is an independent government agency which regulates the industry.

Last October, the Northern Advocate reported that 30 complaints had been laid against Northland-based agents since November 2009.

Figures supplied by the Real Estate Agents Authority showed the complaints were lodged in relation to Whangarei and Kaitaia agents, with two recorded as being unsatisfactory conduct. No further action was taken against six, while 22 cases were resolved through avenues such as mediation.

Throughout Northland, at least five real estate agents faced disciplinary action in 2011.

REAA chief executive Kevin Lampen-Smith said the changes were designed to further protect buyers and sellers.

While complaints about agent behaviour have dropped slightly in the three years since the legislation was introduced, the Authority fielded 807 complaints last year.

On average, 12 complaints are received each week, mostly about marketing, incompetence, negligence, non-disclosure and undue pressure issues.

Less than half of those progress to the complaints assessment committee.

Key changes

• 
  Agents must explain to clients when an agency agreement will end and recommend parties seek legal advice before signing an agreement.
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  Agents must explain to clients in writing when there is no comparable or semi-comparable sales data to base an appraisal on.
• 
  Agents have to explain to a prospective client that how they choose to sell their property can impact on the benefits the agent receives.
• 
  A new rule designed to help protect sellers from the risk of paying two commissions and new rules for buyers' agents.