Legislation that creates an independent real estate industry watchdog with the power to impose stiff fines and ban "land sharks" has been introduced to Parliament.
Associate Justice Minister Clayton Cosgrove wants the changes in law by early next year and today's introduction puts the bill on track forthat.
The shake-up is a reaction to the current inhouse regime run by the Real Estate Institute of New Zealand (REINZ), which has been criticised for weak penalties, unnecessary delays and a reluctance to refer complaints to its more powerful licensing board.
The changes will strip REINZ of its regulatory powers and establish a new independent Real Estate Agents Authority that will oversee licensing, complaints and disciplinary action for the nation's 18,000 agents.
The new body - appointed by the Justice Minister - will have a disciplinary tribunal with the power to fine individuals up to $15,000 and companies up to $30,000 for rule breaches.
It will also be able to suspend or cancel an agent's licence, award compensation and publicise decisions.
At present REINZ committees can only impose a $750 fine on rogue agents, while the current licensing board can impose a $5000 fine.
The legislation will also beef up the maximum penalty for criminal offences, such as unlicensed selling, to $40,000 for individuals and $100,000 for companies - up from the current $2000.
Mr Cosgrove today said the bill delivered on the Government's promise to bring better accountability to the sector.
"New Zealanders' greatest asset is often their home, so it is paramount that people have access to a transparent and effective disciplinary process should they feel they have been ripped off."
The new regime, which will be paid for by the industry, would cost individual agents about $500 a year.
Other changes include:
* the establishment of a public register of real estate agents and salespeople that records any breaches of industry standards;
* requiring licensees to undergo ongoing professional development training;
* requiring real estate professionals to give consumers educational information about their rights plus a written statement to disclose any conflicts of interest;
* a character test for those wishing to get a licence.
