Rogue agents could be forced to pay compensation to clients they deceive under a major shakeup of the real estate industry.
Associate Justice Minister Clayton Cosgrove is set to unveil reform proposals this morning, having signalled in the past an independent complaints body is likely.
Mr Cosgrove announced
in March an overhaul of industry legislation to deal with dodgy agents.
He wants a system that will protect consumers, is transparent, independent and where people are held to account for their wrongdoing.
Mr Cosgrove said in March the industry was a closed shop and needed to be more accountable and transparent, particularly in how it dealt with complaints relating to unethical behaviour.
The Real Estate Institute of New Zealand (REINZ) acts as a gatekeeper and has been referring too few cases to its licensing board.
That board, which does have some ministerial appointments on it, has the power to impose fines, suspend licences or permanently strike off agents and salespeople.
Mr Cosgrove has said that an independent complaints body with the power to impose stiffer penalties on rogue real estate agents was a likely outcome of the overhaul.
NZPA understands it is proposed the new body could also have the power to force agents to pay compensation to clients they deceive.
The options unveiled today will go out for consultation -- which will include hearing from those who have had bad experiences at the hands of real estate agents.
Consultation will be carried out over the next few weeks before the Government introduces legislation to revamp the system.
This month Harcourts caused outrage by giving an award to real estate agent Shaun Cosgrave who was recently found to have sold a couple a home without telling them an apartment block was to be built next door.
The case was not referred to the board to consider.
In 2004 REINZ received 132 complaints, but none were referred to the board, and in 2005 only seven of 163 complaints were referred.
In 2006, there were 212 complaints but again only few were referred to the board.
- NZPA
